News from the Wire

Forrester: 75% of retail banks report increasing customer opt-outs

Tuesday, August 09, 2022 — 13:55:23 (EDT)

RADNOR, PA – Nearly 80% of decision makers at retail banks and credit unions believe that reengaging existing customers is more difficult than engaging new ones, according to a new Forrester Consulting study commissioned by Relay Network (“Relay”), the innovator of SaaS feed technology that drives unmatched customer, member and employee engagement.

The Forrester Opportunity Snapshot, titled “Reverse Disengagement with Contextually Relevant Content,” further revealed that 68% struggle to deliver contextually relevant customer communications, with the majority of their customer experience (CX) investments instead focusing on product-specific messaging and customer acquisition.

While decision makers at these organizations recognize the importance of customer engagement (90% have or plan to invest in CX platforms), they continue to withstand increasing rates of disengagement and opt-outs from existing customers, with almost three out of four respondents reporting that their customers are increasingly opting out of marketing communications year over year.

Product-driven marketing, underspending on existing customer engagement and disparate communication strategies are key factors undermining the engagement required to drive growth. With the right partners and technology, retail banks and credit unions can and should build contextually relevant content that engages and nurtures customers for life.

Additional insights from the Forrester Opportunity Snapshot include:

Focus on Customer Acquisition and Customer Journey Overshadows Engagement Efforts: In prioritizing customer acquisitions, banks and credit unions are not giving existing customer engagement enough of their attention. When asked about the tools in place to improve customer engagement, the majority of responses leaned in favor of the acquisition of new customers rather than serving existing customers.

Inability to Sustain Trust, Anticipate Needs Contributes to Dormancy: When asked how challenging certain CX processes are, meeting privacy expectations (72%) and nurturing customer trust (66%) were noted as two of the toughest. These challenges are a result of organizations primarily focusing on what they want to promote, namely products, rather than anticipating and addressing the unique needs and preferences of each existing customer. Internal Silos, Complex Policies Stall Communication Strategies: Internal silos serve as additional factors affecting banks’ and credit unions’ abilities to develop comprehensive communication strategies. Respondents cited “complex rules around ownership and customer relationships” as the top challenge in developing and sustaining a single cross-organization communication strategy.

Interest in CX Platforms is Rising: Respondents acknowledge their current CX challenges and know growth depends upon happy, engaged customers. As such, nearly all (90%) respondents have plans to align their priorities with their actions, assess their current tools and adopt a customer engagement platform in order to achieve their engagement and retention goals. 

“Forrester’s findings underscore the need for Relay’s feed technology,” said Matt Gillin, CEO and Co-Founder of Relay Network. “Relay Feeds help businesses drive more revenue and more valuable relationships with the people they serve.”

To learn more about the findings, download a complimentary copy of the full Forrester Opportunity Snapshot or register for our on-demand webinar, Banks & Credit Unions: Findings From Forrester’s 2022 Customer Disengagement and Dormancy Survey.   

About the Study 

The Forrester Opportunity Snapshot was commissioned by Relay Network. To create this profile, Forrester Consulting supplemented this research with customer survey questions asked of 154 financial services and custom engagement strategy leaders from U.S.-based retail banks and credit unions. The study began and was completed in May 2022.   

About Relay Network 

Relay Network is the innovator of SaaS feed technology, with over 10 years of experience helping companies more meaningfully engage with their customers. Using the Relay Feed, a dedicated 1:1 engagement channel, companies are deepening their relationships with their customers and employees and improving business outcomes. Our goal is to help our customers maximize customer lifetime value by catalyzing mutually beneficial engagements between them and their customers. 

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information: bankcardlife.com?orid=33533&opid=1 .

Source: Company press release.