WOW. They should have seen it coming because I closed three accounts over a period of about three months. Apparently, they didn’t see it—or maybe they just didn’t care, even after 20 years of my business.
In these days when financial institutions are looking everywhere for deposits, fee income and other revenue streams, I’m shocked to have slipped away from this bank without someone noticing.
It started with paying off a loan, then stopping ACH transactions, then closing checking account A and finally closing checking account B.
The silence has been deafening.
What went wrong for me—and why I dumped my bank after 20 years
I once had relationships at this bank where people knew me and took care of my business banking needs like I was a VIP. Little by little, their service deteriorated. People moved on. I got assigned to a series of virtual bankers. It sometimes took several days and multiple reminders from me when I had a question that required a response.
It was high time for me to look for a new banking relationship.
When I wanted to close out the remaining account before end of month, it took me 5 days of emails and 3 bankers to get assistance. When I finally talked to a person, she told me she was a WFH banker and couldn’t help me transfer money or order a payment to me for the remaining money in my account. I would have to zero out the account myself, then she’d be able to close it.
Really? Really.
What went wrong at the bank—multiple points of failure on customer retention
Although it’s a sizable institution, they must be lacking in systems and proper data management. Or they have them, but just don’t use them.
Their virtual bankers have limited ability to serve customers. So, why are they there?
Paying off the loan should have triggered a check-in from a banker. It did not.
Closing out the first checking account should have triggered another. It did not.
When finally speaking with someone to close out the final account, I was not asked why I was closing it or if there was something they could do to keep my business.
Perhaps the dashboard didn’t tell the CSR that this was my single remaining account with the bank. If not, that’s also a problem for this FI.
A bird in hand: retention trumps attraction
This is a cautionary (true) tale for banks and credit unions everywhere. While you’re spending money on marketing, CRMs, sponsorships and tchotchkes in an effort to attract new customers, don’t do it at the expense of the customers you already have.
- Use that CRM to be sure you’re building and maintaining relationships with customers through your social media, online banking, your app, emails and every other touchpoint.
- Be 100% sure you’re using your data to flag changes in customer behavior, CDs maturing, loans being paid off. These should all trigger a proactive response from the bank. This can be automated and backed up by human responses.
- If you don't have access to your data, insist on getting it.
- Evaluate your systems and establish best practices and customer service standards. Make them non-negotiable.
- Make sure all bankers—virtual and otherwise—have the tools and training to take care of business.
- Survey your customers and actually listen.
- Make sure you have an actionable brand promise and that it’s activated.
For more insights about customer experience, watch our 5-minute video, 3 Ways financial brands can improve CX right now.
If you'd like with customer retention strategies for your bank or credit union, contact Martha Bartlett Piland, CFMP at 785-969-6203 or by
photo credit: torn heart by Ante Gudelj on Unsplash
