The premise of fintech is built on innovation. So it only makes sense that the previous Silicon Valley models of growth eventually become outdated.
These models focused on customer acquisition, which is expensive. Today’s data shows us that retention is smarter, costing much less — sometimes up to 25% less — than the acquisition model.
As a fintech owner, instead of focusing your attention on getting new clients, you should be asking how you can keep the ones you have. What can you offer them to increase how they use your company and how can you increase your earnings off of that usage?
Fintech clients are still recovering from the COVID-19 spiral. They want the safest, fastest way to rebuild the savings they lost and enhance their current livelihoods. In short, you must offer them something of value that meets their needs.
Changing from a profit-centered to a customer-centered fintech may be a paradigm shift for you, but we have three strategies to help you make this transition. Be flexible and open to opportunities; these methods will set you apart from the competition.
1. Optimize What You Have
What are you currently offering your clients? Are you making optimal use of those products?
Evaluate the data at your fingertips, and look for opportunities to grow what you already have. Is there a way your clients can use your services more frequently or go further in-depth with what’s available if they knew how to do so?
The initial cost of making these services known and providing instruction could bring you a substantial ROI and keep your customers loyal to your fintech company.
As you review reports and look for ways to make changes, consider adding more value-added features. If these are meaningful to your consumers, the expense can drive your business growth and retain clients.
2. Expand Your Product Suite to Fill Needs
Right now, your products fill at least a basic user need, or the client wouldn’t have signed up for your services. However, you must continually expand your product suite to retain more customers in an ever-changing, competitive industry.
Fintech startups are skyrocketing. Yet, they only stand out when they provide services that fill a niche in an underserved market or offer something innovative and valuable.
This was easy to do during COVID when a completely new gap in finances appeared almost overnight. Consumer needs changed drastically, and any startup or existing financial service that could fill those needs reliably became successful. During that time, companies established trust and relationships with consumers and cemented their loyalty.
Still, the products offered by those businesses must continue to meet clients’ ever-changing needs. One way to expand your product suite is to partner with fintech companies that can help you grow your business without the hassle of more regulatory bodies and additional hardware and software development.
3. Focus on Transforming Client Finances
The average American household has nearly $100,000 in debt, and overall consumer debt across the country is over $16.5 trillion. Needless to say, there’s plenty of room for improving consumer finances through your products.
Developing a service that provides the financial basics gets you in the door to a client. But helping them get out of debt or boost their nest egg can ensure you keep them loyal.
Financial health isn’t a one-size-fits-all journey. Your products might include “round-up” services, where the extra cents per purchase are converted into savings. Or, you could provide lower-interest options to pay off debt or improve credit scores.
Of course, these opportunities are already in use by other fintech companies. Come up with your own, or tweak what you already know is successful to work with your products. You have a game-changer as long as you provide something that can improve your client’s financial health.
The fintech industry is always evolving. When you offer products that meet the needs of your users and provide value, you have a strong chance of success.
However, chasing new leads is expensive and takes time. It’s necessary, but it doesn’t have to be your primary focus once you’re established.
Use these three strategies when you already have a strong customer base, and you want to keep them loyal. The return on investment you get from the changes, plus skipping the expenses of bringing in new clients, will substantially improve your bottom line.