<p><em>The science of customer relationships is simple - the value you get is proportionate to the value you give, says <strong>Sanjay Gupta</strong></em><br><br>Customer loyalty within the banking industry is dipping the world over. And with cutthroat competition, banks are finding it even more difficult to retain clientele. Banks need to rethink their service strategy as this will not only help ensure quality customer experience, but also positively affect its bottom line. By anticipating and addressing customer needs before they can become inbound contact center expenses, banks will be able to increase customer retention and loyalty as well as boosts agent retention and job satisfaction.<br><br>Proactive customer care enables banking players to delight customers with convenient, useful information at their moment of greatest need and meet the challenge of striking the right balance between containing costs and delivering value through a highly differentiated customer experience. Here are four reasons why this strategy makes good business sense.<br><br><strong>1. Customers Repay Proactive Service with Greater Loyalty and Long-Term Value</strong><br>The science of customer relationships is simple - the value you get is proportionate to the value you give. To achieve and maintain this harmony, banks today must establish a dialogue with customers that demonstrate awareness of their needs and respect for their communication preferences. The more contact made with a customer, the "stickier" they become. When customers are consistently given valuable information, this stickiness can form a durable bond of loyalty.<br><br>A few banking players are already looking at new ways to measure their customers' long-term value or profitability. Lifetime value is based on the profit earned from a customer over the total lifespan of an active account. Exceeding customers' support demands maximizes their longevity and, as a result, helps increase value. For example, it may take 30 seconds to reach out to a customer to satisfy a need with differentiated service. If that time costs $1 million a year, it can yield twice that amount in new or continued business, as well as word-of-mouth referrals to new customers.<br><br><strong>2. Winning New Customers Cost More than Retaining Existing Customers</strong><br>Here's where proactive customer care can put a real dent in customer churn. What if banking contact center representatives proactively engaged customers to advise them in advance when their loan's EMIs are due? Or inform them about more appropriate savings schemes based on their earnings? Although customers might switch to other schemes, the value of up-selling or cross-selling to already existing customers is easy to measure.<br><br><strong>3. Contact Center Efficiency Improves with Reduced Call Volume and Automated Outreach</strong><br>By evaluating current business processes for customer service patterns, banks can preempt interactions and reduce inbound contact volume by proactively reaching out to customers to report on progress. The convenience delivered through this process creates more positive customer experience that helps build loyalty, and with fully automated transactions can also help save costs.<br><br><strong>4. Agent Job Satisfaction and Retention Increase, Reducing Turnover Costs</strong><br>It is common knowledge that the customer service representative's job is traditionally marked by rapid burnout and high turnover. According to recruitment firm Spherion, the turnover of one job costs a company an average of 1.5 times the employee's annual salary when separation costs, overtime payments to temporary workers, loss of productivity and replacement costs are factored.<br><br>The though behind personalised, live interactions with proactive care agents is to humanize the customer experience as well as the agent's interaction experience. By providing useful information to preempt or resolve issues, agents develop more meaningful relationships with customers. This exchange leads to a win-win situation that provides a more satisfying work experience for agents and influences job satisfaction. This in turn leads to lower employee turnover for the bank while strengthening customer relationships.<br><br><strong>The Difference is Relevant Value</strong><br>The real value of proactive customer care is in building and maintaining a healthy bottom line over a longer time frame through ongoing and elevated focus on the experience. Proactively delivered, customer care allows a bank to provide differentiated, high-touch services that reinforce the brand's identity and customer value proposition. Even if these services cost more, it is a known fact that customers are willing to pay more for higher perceived value in any economy and appreciate being consistently treated like valued clients. In a nutshell, it is the differentiated service that can pay real dividends.<br><br><em>The author is Managing Director, South Asia and Middle East, Aspect Software</em></p>
