Client Acquisition Retention and Lifetime Value: Why Real Time Actionable Insights Matter to fintech: Clients cost money to acquire, but they also cost money to lose. Actionable insights let companies plan proactively to reduce the cost of gaining new customers while increasing customer retention rates to minimize losses over time.
The Cost of Conversion
Customers aren’t free, and in FinTech, they aren’t even low-cost. One reason for the relatively high cost of acquisition in the industry is that products and services that relate to finance require a lot of trust on the part of the client, so it takes more time and high-quality touch points to get a new customer to try your goods or services.
That’s especially true for smaller brands or startups, which don’t have existing audience goodwill or brand recognition to lean on. But even well-established FinTech brands pay a high price of admission when it comes to customers:
The Savings of Retention
The costs don’t stop at acquisition. Customer service and retention cost money, but at least that’s spend that comes with ROI from the revenue generated by each client. Lose the client and you pay for it without any future ROI on the table. According to research shared by online marketing guru Neil Patel, each customer lost is costing companies at least $289. Within the FinTech industry, where attrition may come with activity mandated by regulations, the cost is probably more.
How Actionable Insights Increase Lifetime Value of Customers
FinTech companies can increase the overall lifetime value of customers by applying actionable insights to both acquisition and retention.
Artificial intelligence and data analytics let you hone marketing campaigns so sharp that you’re spend goes toward customers who are most likely to take you up on your offer, reducing the overall cost of acquisition. And applying that same AI repeatedly provides increasingly excellent results.
That same technology can be used to personalize customer service and offerings to increase the chance of upselling and decrease the risks clients will go elsewhere.
If you want to know how you can get access to these actionable insights and increase the lifetime value of your customers, contact us for more information.