Financial technology or Fintech is financial services that revolve around the core concept of customer engagement. Contrary to the conventional banking sector, the backbone of fintech industries is based on next-gen and user-friendly interfaces and personalized customer support.
The objective of the fintech industry is to address the shortcomings of traditional banking institutions; by providing customers more transparency in operations, 24×7 customer support 365 days and the ability to manage transactions easily, raise concerns and get them resolved immediately. Additionally, due to their functionality and size, they are able to revamp broken processes in banking without the need to worry about red tape.
Let’s explore why customer engagement is so important for fintech companies.
Customer Retention
One of the most important reasons why customer engagement is essential to fintech companies is because it helps in customer retention. According to data from Bain & Company, “improving customer retention by 5% can increase the profits by 25%. Moreover, retention is far more affordable than customer acquisition”. Customers who feel like their voice is heard and that their needs are being met are more likely to remain loyal to a company. A great customer experience can also be a huge deciding factor for customers to choose one product over another. By engaging with customers on a regular basis, fintech companies can increase customer loyalty and reduce customer churn rates.
Increase in Revenue
Another benefit of customer engagement for fintech companies is that it leads to increased revenue. Studies have shown that when companies engage with their customers, they tend to purchase more products or services from those businesses than those who don’t engage. This means that when fintech companies invest in customer engagement, they can expect an increase in basket value over time as well as be in a better position to augment cross-selling sales.
With the way the market is nowadays, it is a highly grueling task to keep up with the dynamic needs and requirements of customers. This is where consistent and good customer engagements play a key role. They help understand your customer’s needs and hence serve these needs, which further improves your revenue.
Enhanced Brand Image
Customer engagement also helps build a positive brand image for fintech companies. By taking the time to really listen and understand what their customers need and want, these companies can create better products and services that will help them stand out from the competition. Additionally, when customers see that a business takes the time to answer questions, solve problems quickly, and provide helpful advice, they are more likely to trust the company and recommend its products or services to others.
Customer engagement plays an essential role in any successful business but it is especially important for fintech companies due to its ability to retain existing customers while attracting new ones at the same time.
Contrary to the general myth which says that outsourcing degrades your brand image, outsourcing BPO services is one of the best strategies to improve your customer satisfaction and therefore improve brand image. Outsourcing focuses on improving efficiency, saving on infrastructural resources, reducing labor costs and focusing on core competencies.
FCS – Paving the Way to a Brighter Future
First Credit Services is a leading BPO company that caters to the growing needs of the fintech industry by utilizing state-of-the-art technologies, data analytics, machine learning and multi-channel communication to improve customer experience. We provide several inbound and outbound call services that ease up the workload and responsibility while bringing the expertise and experience that helps them engage more with customers.
Click here to know more about our services for the fintech industry.
