When banks and credit unions open the door to multiple digital channels
It allows them to acquire a greater number of customers than by in-person branch visits alone. According to a 2021 digital banking consumer survey, 20-25% of consumers would prefer opening a new bank account digitally but are still unable to do so today. In fact, the difference between one customer’s business for a few years vs their entire adult life can be worth tens of thousands of dollars.
With Verivend, banks gain: an increase in customer adoption and retention, and additional revenue opportunities.
Going Digital Drives Lifetime Value
Listening to what consumers want and offering high-quality digital experiences is a vital part of creating a long-term customer strategy. So, improving lifestyle value must start from the beginning, by modernizing the way customers open a new account through digital means. Customers don’t just want a seamless account setup experience anymore, they expect it. Thus offering quick and convenient features like integrated document management, integration with existing billing and accounting platforms, and the ability to build trust and reputability with their vendors One of the greatest benefits consumers express about going digital is being able to manage their financial lives in the palm of their hand, at any time, from anywhere. The rise of the API economy, Open Banking, and digital is allowing banks to merge with strategic partners whose services they can offer and benefit from together.
Verivend opted to break the competitive ties traditionally woven between banks and Fintechs by striking up a cutting-edge partnership with Lake Shore Savings Bank. Now, Lake Shore Savings can deliver a seamless, white-labeled experience to their customers as they integrate Verivend into existing AR and AP systems and workflows to modernize their B2B transactions. Creating a tech-based partnership with superior value drives consumer value to last a lifetime.
Does Creating a Customer for Life Really Matter?
The short answer to this question is: of course, it does. Creating a customer for life quickly turns into creating customers for life. This, in turn, helps businesses determine important factors such as how much time and resources to dedicate to new customer acquisitions. It actually costs more to continually acquire new customers than it does to keep existing ones so adding lifetime value to an existing customer experience can be a cost-efficient growth strategy. It’s vital to gain a genuine understanding of each customer and their financial lives as they make decisions on products and services to buy depending on where their financial status stands. Something else to consider when asking does a customer for life really matters, is age-range demographics, since certain age groups may be less profitable when they first sign up but provide a much higher lifetime value in the future.
How to Face Changing Consumer Values
Banking and the financial industry face continuous threats from all different directions including, rapidly changing customer values and new digital competition from other banks and or platforms. However, not only taking into consideration but implementing some of the strategies mentioned above to improve the financial lives of consumers can help increase brand loyalty and derive lifetime value from customers.