Consumers are getting used to playing the field with banks. Winning their loyalty above all other suitors requires hard work and patience.
Today, many banks define the strength of the relationship they have with a customer by the number of products or services that a customer uses with the bank. These banks believe “If we sell customers more products and services, we will have stronger relationships.” Some of these banks believe big data algorithms can tell them when a customer is ready to buy more.
Our research with banking consumers clearly shows that developing a better understanding of your customers is the only way to truly build relationships with them. When customers believe you understand their wants and needs, they are open to hearing about additional products and services. Banks need their employees (not their computers) to build relationships by talking to customers and asking them questions to understand their wants and needs. In other words, customers say, “If we have a strong relationship with someone at our bank, we will by more products and services.”