Banking on Digital Growth
Banking on Digital Growth

Episode · 4 months ago

209) #BehindtheCover: Maximize Your Onboarding and Never Lose a Customer Again


Audrey Cannata joins me once again to continue our Behind the Cover series. In this episode, we discuss Joey Coleman’s book Never Lose a Customer Again: Turn Any Sale into Lifelong Loyalty in 100 Days.

So many financial brands are built around customer acquisition that they end up neglecting the experience of their legacy clients.

But by taking a proactive approach, banks and credit unions can maximize customer retention.

Join us as we discuss:

- The conflict of customer acquisition versus retention (7:38)

- The difference between customer service and the customer experience (19:41)

- How financial services can invest in the customer experience (30:47)

Check out these resources we mentioned during the podcast:

- Audrey Cannata

- Never Lose a Customer Again: Turn Any Sale into Lifelong Loyalty in 100 Days by Joey Coleman

You can find this interview and many more by subscribing to Banking on Digital Growth on Apple Podcasts, on Spotify, or here.

Listening on a desktop & can’t see the links? Just search for Banking on Digital Growth in your favorite podcast player.

There's a tremendous amount of confusion between customer service and customer experience, and when you're thinking about customer experience that's proactive. You are listening to banking on digital growth with James Robert Lay, a podcast that empowers financial brand, marketing, sales and leadership teams to maximize their digital growth potential by generating ten times more loans and deposits. Today's episode is part of the behind the cover series, where James Robert Lay and Audrey Kannada breakdown lessons and insights from the books they've been reading. We understand that in a digital age, taking time to read can be a true challenge, but here at the digital growth institute we believe learning is one of the four exponential growth environments. So let's go behind the cover. Greetings in Hello, I am James Robert Lay, and welcome to episode two Oh nine of the banking on digital growth podcast. Today's episode is part of the behind the cover series, where today we are going to be taking you behind the cover of never lose a customer again, written by Joey Coleman. Now Joey joined me for a conversation going all the way back to episode one and joining me for today's conversation is Audrey Kannada, operations lead here at the Digital Growth Institute, who will provide some perspective around what she is seeing through the training, coaching and research we are doing here at the Digital Growth Institute. Welcome to the show, Audrey. It is so good to go behind the cover with you again today. Thank you, James Robert. Excited to have our second episode of the series. Before we we get into talking, never lose a customer. What is going well for you right now? What's good personal? Professional? It's your pick. Well, it's the summertime, so of course have a lot of fun vacations and events planned. So really looking forward to that extra time with my family and friends. Speaking of vacation, you know I've got the week of Fourth of July blocked off Um and I was like I don't I don't want to do anything, I don't want to go anywhere. But then, kind of last minute, found a little farmhouse on airbnb out in the hill country and we had some gift cards, so I was like, you know what we're gonna WE'RE gonna go hang out with some chickens and goats see what happens with the kids here. You got some pictures. Put them to work out there too. Absolutely vacation. They don't forget. But I'll tell you what you know to speak about never lose a customer. I'm so impressed with the the responsiveness of the host of of of of this little farmhouse and what they've done is they've taken about I don't know, maybe they had, like ers are so thirty acres and...

...they've put these little houses out there and so they're creating this little experience. But she's been so helpful, she's been so friendly and it really plays nicely into this whole never lose a customer conversation that we're talking about today, which is where I want to I want to dig into the subtitle of the book here, which is turned any sale into lifelong loyalty in one hundred days. I'm curious what is it about those first one hundred days that is so important? I think during that first one hundred days your customer is going to experience a lot of different emotions. So you may have gotten the sale, but they're still going to have that potential buyers remorse. They may have some confusion, they may have some questions that they need to be answered. They may not be one percent competent in their decision and I think it's really important that we remain by their side and kind of hold their hands through that process when they first join and don't make them feel like, okay, well, I've you know, I've made the sale. Now I've been forgotten about. That's a fantastic point. The and and really diving deeper into the emotional states of mind or the emotional states of being, because finances, money, is a highly emotional, emotionally charged subject. And but when we think about financial services, we think about banking, those that are in leadership positions aren't necessarily thinking with their their right brain there. They tend to be more left brain and equal analytical driven leaders and and that creates a lot of gaps literally within the mind. And with that, with that in mind, how might banks, credit unions, fin techs be lose seeing customers in the first one days because of this emotional gap? Well, I think when you're looking at banking specifically, you can relate it to healthcare. It is not something that people really enjoy partaking in. It's not something that people are typically excited about. So taking that into consideration, you have to really go above and beyond and find these other ways, these other touch points to connect with them at that emotional level, to get that confidence built with them, because they're not excited to walk in your branch and make a transaction. So what can you do to create this positive experience make them walk away feeling good about this relationship when ordinarily they're not going to be that excited about it? I like how you've leaned into this word a couple of times. Confidence Um. You know, it's one of the very, very powerful emotional states. Like I've done something, I feel confident about it, I feel good about at it, because the...

...antithesis of that is maybe conflict Um. If I if I don't feel confident, I might feel conflicted, I might feel doubting that, well, maybe this wasn't the best decision for me. And, as you mentioned before, people are going to go through a range of emotions. Clarity is another one. The antithesis of clarity is confusion, and I think there might be some confusion here when it comes to we'll call this experience, just the overall experience of a financial brand of bank or credit, a Fintech, of where growth opportunities are? where? Where might they be? Because there are really only two different ways a financial brand can grow. They can grow through either a acquisition or they can grow be through retention. Where are are you seeing most organizations spend their time and why? So most businesses are structured around customer acquisition and not the customer experience and not retention. So many dollars, so much effort is put into acquiring but not retaining. And I love how Joey Coleman in the book he really likens this to dating. You think about your trying to get someone to go out with you. You're working really hard, you're chasing them, you finally get them to say yes, they show up on the date and there's somebody else there. There's a different experience than what they expected. So there's that little bit of luckdown. Will wait a minute, you work so hard to get me here. Well, now what? Yes, and I like that analogy as well, because it is you know this, particularly within financial services. To acquire a new account, it takes time, it takes energy, it takes attention and in a lot of times to acquire new account, depending upon it if we're talking detail or commercial, on retail it could be, you know, three hundred, maybe five to acquire a new account. Commercial can be sometimes five, ten, upwards of fifteen thousand dollars to acquire that account. But then what happens? Then it's okay, well, we've got this new account. That is where we're seeing a tremendous amount of opportunity because of blind spots in what happens next over those first one hundred days. And so, knowing, knowing what you know through our digital secret shopping studies and also through some of the insights that Joey shares in the book, Do you think financial brands are even aware that they might be losing customers in the first one days? Are they even aware of the blind spots that are costing them big time to the tune of millions and millions and millions of dollars and loans and deposits, blind spots that they can't even see?...

I don't think so. Joey did some research and he shared it in the book Um and actually it was great because he leaves his book off with a Great Bank example. He says that in his research of new account holders are going to leave within the first year of opening their accounts and of that thirty two percent, half of them are going to leave in the first one hundred days and going back to your per account on new customer acquisition. That is a hard pill to swallow in terms of lost money or wasted money. When looking at the digital secret shopping studies that we've conducted, people will tell us it is a hassle to open a new account. They don't want to do it. Yet we're still seeing people leaving their financial brands left and right and it's interesting. You talk about the the friction and the frustrate and once again feelings and emotions right there. Opening an account is a hassle, but opening an account is only half the battle. I was texting the other day Um with cassie Leblanc and we were going back and forth and sharing a couple of thoughts and one of the things that she noted, a big pain point, was just because you open the account doesn't mean that the battle has been won. Then you have to move deposits over, but not just deposits. Then you also have to move or over move over all of the reoccurring billing, the subscriptions, the Trans I mean it's it's a whole thing and do it right. And and then you know if I love chapter two in the book, because Joey says, if a dentist can do it, why can't you? And this is so relevant to financial services because a couple of years ago, Viacom did a study that particularly around the millennial market. They said that millennials would rather go to the dentist than to have to deal with their financial brand. It's pretty powerful stuff right there. That is a very, very powerful statement. And so if if they would rather go to the dentist than to deal with their financial brand, there's a tremendous amount of opportunity and you've seen some of this, particularly within one competitive analysis that we did that provided clarity into how much hand holding is needed within the first one days of opening up a new financial relationship. What did you find in this study that that we conducted and and what surprised you here? This is one of my most favorite studies that we conduct because it was so insightful and it was so...

...interesting to see the responses from people when we conducted this study from this one financial brand during the onboarding process, we looked at the communication and the number of communication and the ways they communicated over the first sixty days. And in that sixty day period, on average, users were receiving between fifteen to thirty emails in their inbox. And what's even more interesting is of the group that we studied, eighty percent of those users did not feel like that was over communication. So thirty emails and sixty days, that's an email every other day, and eighty percent of the users did not feel like it was too much. And of those pent on of those were between the ages of to forty, so that twenty five to forty age. Those who grew up in the technology age. This is not too much for them, which I found very, very shocking. Digital growth is a journey from good to great, but sometimes this journey can feel confusing, frustrating and overwhelming. The good news is you don't have to take this journey alone, because now you can join a community of growth minded marketing and sales leaders from financial brands and fin techs who are all learning, collaborating and growing together. VISIT DIGITAL GROWTH DOT com slash insider to learn more about how you can join the digital growth insider community to maximize your future digital growth potential. Now back to the show. So that's a very practical perspective for the dear listener is to really think about your own first one hundred days and how many communication touch points do you have within those first one days? Let's let's get a little bit of comparison here. Um, I know of another organization that, within their onboarding period, there was no communication for the first two weeks. There was two weeks of little, literally radio silence. That makes people wonder. It's like, okay, well, what happens next? And I think that right there, that what happens next is so key, because there's three questions that you can take within your own financial brand or Fintech and ask from the Lens from the perspective of the consumer, which are, number one, where do you want me to go next? Number two, what do you want me to do when I get there? And the number three, how do you want me to feel along the way? Because, coming back to this particular study that that you're referencing..., the reason that consumers were not irritated by the amount of communication it was was because this particular brand was providing a vast amount of clarity right very, very helpful content. In fact, we asked the users what is it about the content that you found helpful or why? Let me rephrase that. Why did you not find this communication overbearing or annoying? And they said point blank it was a there was a type of content they were getting. They were telling them about the different features, the different benefits. They were giving them opportunities to know, earn rewards or refer friends. So it wasn't just unnecessary content or even narcissistic current content that we see so often, you know, and and that's so different from the traditional two to to communication path that historically has guided financial brands, you know, onboarding within the first ninety days or in this particular case, sixty days, which was two days, two weeks and then two months. And when you look at that comparative to this particular example, that two days, two weeks, two months. Yeah, that could probably leave someone feeling a little confused, someone feeling a little bit frustrated. Why? Because of the the inherent complexities and cognitive load of money. Now we also have conducted, we've we've conducted probably close to secret shopping studies at this point. And what I can pretty much definitively say it's the fin techs that do not shy away from overly communication, eating compared comparative to the incumbent bank or Credit Union, and I think because they're looking at the world through a different Lens Um, which was another theme that Joey unpacked. And never lose a customer. Is the difference between customer service and customer experience, because I see that there's a tremendous amount of confusion with these two perspectives within financial services. That is costing banks and credit unions once again, millions and millions of loans and deposits. What is the difference between customer service versus customer experience? I think you're spot on. There's a tremendous amount of confusion between customer service and customer experience. And when you're thinking about customer experience, that's proactive. That is how you are affecting, how are how are you...

...going about affecting that customers emotional feelings towards their relationship, towards their experience with you or as customer service, that is a very reactive place to be. That is how you respond to your customers when things are going wrong or they have questions. So it really comes down to are you being proactive or are you being reactive? And when you're proactive through the Lens of experience, your you tend to trend more from crafting experiences, engineering experiences, experiences built around systems and processes that are strategically defined Um then they're applied. But I think that really the secret that we see the financial brands that have some of the most hily charged, from a positive standpoint, emotional experiences are the financial brands who continuously come back in review and optimize those experiences over time. And you can look at experience through a couple of different lenses. You can look at, as I wrote about in banking on digital growth, digital experience, and digital experience can be broken up into three sub sets. You have the lead experience, you have the customer or the member experience and you have the referral experience. You can also look at this through the Lens of how is a digital experience Um humanized? So the human experience, but then there's also the e x or the employee experience. That, I think, is where a lot of focus is going to be placed over the next three to five years because through our research we're finding that a digital experience is only going to be as good as the human experience of a brand, and the human experience of a brand is only going to be as good or as positive as the employee experience, and I think that's one of the reasons. The best part of of never lose a customer, particularly through the Lens of customer experience, lead experience, even referral experience, is Joey unpacks a framework, eight phases of customer experience and they're all a's and I like them. All Your I love. I love alliteration because it just makes it so easy to remember and and those eight phases are assess, admit a firm, activate, acclimate, accomplish, adopt an advocate and and they really compliment the banker strategy circle that we...

...teach financial brands that aligns marketing cells and service teams and and we don't have time to dig into all eight of these different phases, but but if there's just one that you would like to dig into, to highlight for the dear listener, which of these eight phases would that be? I think that the biggest phase that financial brands can focus on, or the biggest missed opportunity is the affirm stage, and Joey Coleman says in the book, and I love this quote, and actually I believe he's quoting somebody else saying this, but it is a sale is not complete until the customer receives a result. So oftentimes we make the sale, we we open that new account and then they're just forgotten about and we're not addressing any doubt and we're not making them feel good, we're not giving them that initial dopamine hit to keep them coming back and to keep them engaged in the relationship and we're letting them go and not holding their hands. I will continue to advocate one of the AIDS from Joey's model here. I Will Advocate for coaching to be a part of the overall financial brand experience, because it is through coaching you can continuously affirm and reaffirm both and individuals goals for growth, whether that be on the consumer side, personally on the retail side, or or professionally, maybe as an entrepreneur or a business owner on the commercial side. You can affirm their goals, the future that they want to create, but then you can also come back and reaffirm the progress that they are making towards said goal. And there's no better way to deepen that relationship than through an ongoing dialogue discussion that happens every ninety days. What's your take on that, Audrey, this idea of of of coaching being a way to continuously affirm and reaffirm a person's decision, that that has the potential to last for years, if not decades, have done properly? Absolutely, I mean, I think in the financial industry, you know, we talked earlier about acquisition versus retention, and you know this is one of the easiest areas to get that lifelong relationship and have that lifelong customer because there are so many different areas to you know, cross sell. And I think when you're dealing with finances, because it is such a sticky subject sometimes and such a stressful subject for many, that it's really easy to lose that...

...confidence and it's really easy to become, you know, frustrated, and so I think we underestimate how much people do need their hands being held. They need that guy. It's really, really hard to do it on your own and it's that continuous touch point that every ninety days and I think is so important because people are going to get off track, they're gonna lose sight, they're gonna have other things that come up and priorities and they need that person, uh, they need that person to hold them accountable and push them towards those goals. Yeah, and I think that that idea and I'm I'm gonna, I'm gonna poke on this a little bit. But but I think what just happened is like your subconscious mind just said a word that we are so ingrained to say within this industry when it comes to onboarding. And I was just talking with J J SLA out this in episode two, Oh eight, and that word is cross sell. I don't think we should be cross selling anymore. I think one of the greatest opportunities is to be cross helping, Um, to really look for those opportunities to make those proactive recommendations, because there's it's different. I mean we, you know, we talked about this a lot. It's it's a Matra help first, sell second, because when when you are helping, you are guiding, and when you're guiding you're showing someone beyond the pain of the present moment. And and and just because, once again, someone opens that account with you, does that mean that the journey has come to an end their journey. No, their journeys is literally just beginning, and they have given you really the privilege to play Gandalf, to guide them, or they give you the privilege to play Mr Miyagi um or to play Obi Wan Kenobi, and provide that wisdom, to provide that knowledge, to provide that insight most importantly, to provide that clarity, because a lot of times when people are financially struggling, when things are challenging, it can feel dark and this is the opportunity to be the light, to provide a path, to guide someone forward beyond the darkness to a bigger, better and brighter future. And and you know, I I get it. It is easy for financial brands to get trapped in the here and now, to get stuck doing digital um it's like this onboarding peace. It's I will...

...come back. We revisit it, you know, every couple of years. But I'm really encouraging this becomes a top of mind focus because, back to the point that Joey makes in the book, we spend so much time, effort, energy dollars to acquire new accounts, but then we could, in theory, be be losing them as quickly as we're acquiring them. If if we're not careful, and so in in in the book he recommends a path forward to ensure that we we don't get stuck doing that, we don't get trapped in the Cave of complacency, so that we can continuously maximize, you know, our future growth potential. What's Joey's recommendation here? To continuously reinvest, you know what we're doing, to make it even that much better going forward. So he recommends investing at least five per cent of a project's profit back into experience enhancements, which I understand can sound like a lot depending on the scale of your product. But you really have to be forward thinking. You really have to think about investing in a future relationship. It is that retention piece that is hard because it's not tangible, it's not there's not going to be a quick return on your investment. But you've really got to see the bigger picture. Yeah, and what that requires is to play a long game, you know, beyond the here and the now. But by by making this commitment, it is a fantastic way to differentiate yourself beyond the commoditization that every other financial brand is is focused or really positioning around number one. And you know, the argument can be made Google commoditized financial services and you know we've moved beyond the product economy. Some argue we're in the experience economy. But if, if, if we're not careful experiences, I believe because of digital and because of the way that financial services are set up, you know we we were buying from the same technology vendors. Experiences have the potential to be commoditized as well. So what does that leave us with? Wells, as we move forward, I predict that we're moving into what I'm framing as the expertise economy, and it's when our knowledge, our expertise, when joined and combined with our experience, that is what creates a multiplying effect for us to continue to move forward on our own digital growth journeys with confidence if they're is one thing, audrey, that you could recommend the dear listener applies... help guide them forward on their own digital growth journey? And there's a lot. There's a lot. This is a thick book. It's an easy read, though, right very, very easy, and I have to say I really recommend the audible Joey Coleman does a fantastic job narrating, so if you are a listener, definitely pick up the audible yeah, and and so too. To just really distill this down, what would be one recommendation, something small, from the book that the dear listener could apply that could help them take their next best step forward to maximize their digital growth potential? Something small, something simple, because there's so much practicality packed into this book that there's there's douzens and dozens and dozens of ideas. But what would that one thing be? I think it is at first post sale interaction, let them know immediately what to expect, what's going to happen next? What can they expect down the line? And do that right away. Don't let there be any room for uncertainty or confusion or being forgotten about. And it's very, very simple. It's a simple follow up email that goes out minutes after or the next day. Call and check in on them, make them feel good immediately after making that sale by multiple touch points. Let's roll that back even further. It's what happens, particularly in a digital environment. What what do they see when they complete the application? What are those next best steps? What is being communicated, and that's something that you can go and audit and assess yourself right now. Are you providing them with clarity into what happens next? Go back to those three questions. Where do you want me to go? What do you want me to do when I get there? How do you want me to feel? Are there expectations being set around time? is their speed being met, because speed is the new service. Speed is key when it comes to digital experiences. So these are all very practical things that you can do today. Start today. Go and just do a diagnostic do an assessment and see where you're at and then also maybe even consider benchmarking your experiences against other financial brands but, I would say, even more importantly, against other fin techs. Right this has been a fantastic conversation. Always good to go behind the cover with you, Audrey, to get real practical into the books that you're reading, that we are reading, so that we can...

...continue to transfer our knowledge, our insights overlay them with what we're seeing within financial services. What's the best way, Audrey, for someone to get in touch with you to continue the conversation that we started here today? Please reach out to me on Linkedin. Audrey Kannada, say hi, drop me your favorite book recommendation. I love, I love to add things to my list. So yeah, definitely reach out to me on Linkedin. Connect with Audrey, learn from Audrey, grow with Audrey. Audrey, what's the next book that we're gonna be discussing here, because this is this is a really fun series that we have going on. Okay, the next book. We actually said this on the previous podcast. We got them switched up. We are doing tiny habits for real this time. Tiny habits which really I think the the insights from this book place so nicely with what we were talking about in this conversation around building coaching in to the overall experience of a financial brand. So I'm looking forward to that, Audrey, me too. Until then, as always, be well, do good, take your bed. Thank you for listening to another episode of banking on digital growth with James Robert Lay. To get even more practical and proven insights, along with coaching and guidance, visit digital growth dot com slash insider to join a community of growth minded marketing and sales leaders from financial brands and fin techs. Until next time, be well and do good.

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