With the expansion of digital assets, we have been witnessing a surge in fintech startups in recent years.
Following comes a heavenly amount of competition as all fintech startups are ready to raise funding rounds and establish themselves as a trusted brand.
As this industry sails through tough competition, it has become essential to stay alert so as to avoid losing customers to competitors.
Every startup is coming up with unique innovations and customers are likely to have many options in hand and even better than the others.
This increased competition means that FinTech startups must focus on customer retention and satisfaction to remain successful.
But how to retain your customers?
Let’s discuss some strategies that FinTech startups can use to avoid losing loyal customers to the competition.
1. Focus on improving UI/UX
What are the odds that if we open an app and don’t like the User Interface of it and at the very moment, uninstall it?
User Interface is the first thing that user experiences, be it your website or your application. If we talk about the Fintech industry, the product is already complicated and you can not take a chance by building a more complicated UI.
A good user experience can make your customer feel more confident and approachable, thus helping you build customer trust and loyalty.
A user-friendly UI should be incorporated into your product so you can keep in mind that users should be able to navigate through your product quickly.
As the famous American designer Charles Eames once said:
“Design is a plan for arranging elements in such a way as best to accomplish a particular purpose.”
Talking about the buttons and the entire navigational setup in general, they should be clear and intuitive. Using a clean, minimalist design and avoiding filling in too much information is recommended for extending users a better user experience.
By using visually appealing UI you can create a positive emotional connection with the user, leading to increased brand loyalty and customer retention.
Want to explore more on why providing a good UI/UX will help you avoid losing customers?
2. Ensure Security and Trust
Fintech is all about dealing with a lot of money, thus building trust and security is significant in the FinTech industry.
Startups must ensure the following in order to build trust in their customers:
- Data privacy and security,
- Offering transparent pricing and fees,
- Providing fraud protection and security measures.
If we talk about data, it drives the FinTech industry in a dominant manner. Every interaction and transaction at large with consumers add up to the already present gigantic stack of data stored with the companies.
Here in the interest of consumers and their data’s safety, it’s important for companies to maintain and secure the data to avoid losing customers to competitors.
Just like how protecting the privacy of your consumers’ data is crucial, it’s also necessary to prioritize transparency in all aspects of your various charges and fees.
Another important aspect of providing security and trust is to educate your customers about the prevalent cyber-attacks and data breach activities.
By investing in security and fraud prevention measures, you can set yourself up for long-term success in the ever-competitive FinTech landscape.
3. Provide Personalized Services
To succeed in such a competitive industry, one must differentiate themselves by providing a superior user experience.
Personalization is the key to today’s customer relationships and it can be used to improve user acquisition.
FinTech startups can use customer data to personalize experiences and offer customized products and services.
Here are a few pointers you can put into execution:
By making users feel special
When users feels that someone is taking care of their needs and understanding their requirements, they automatically get inclined towards becoming a loyal set of customers and even advocates at a later stage.
Such personalized behavior will eliminate all your chances of avoid losing customers to your competitors.
By providing Effective & Prompt service
Responding quickly to user inquiries and providing solutions to their problems can create a positive experience and build trust.
This will increase the credibility of your brand and service in the minds of your customers.
By surprising them with Gifts
Surprise your users with unexpected gifts or perks to make them feel special.
Including small gifts such as stickers, branded merchandise, or larger gifts such as free upgrades or premium features will strengthen their trust in your services.
By understanding customer preferences and behavior, startups can create personalized experiences that keep customers coming back.
Want to explore practical FinTech marketing tips?
Check out: FinTech Marketing tips to boost ROI exponentially
4. Use videos to improve comprehension
Videos play a vital role in retaining customers in a complex space like FinTech. Almost 66% of Fintech marketers feel that FinTech videos can be the next big thing in Marketing.
Using financial explainer videos help in engaging the target audience as well as the product or services. Also, it helps brands inform customers about new product updates.
This helps users stay up-to-date on the latest developments and improvements, which can increase satisfaction and loyalty towards the company.
Videos can also help customers solve problems quickly and easily, improving their overall experience and decreasing the chances that they will abandon the product or service. It may lead to increased customer loyalty for your product.
Utilizing clips extracted from the video to share on social media platforms is also beneficial, thus making them a great way to reach a wider audience.
Here’s a financial video example for your better understanding:
Target Audience: Stock market Consultants
Video Type: Animated FinTech/SaaS Explainer Video
Industry: Financial
For more such ideas
Check out: 7 Exceptional video ideas for fintech
5. Use offers wisely
Rolling out customer-centric offers is a common way to retain customers in the Fintech industry.
However, it’s important extend those offers wisely ensuring that they do not end up being considered as worthless for your customers.
In the FinTech domain, you must have seen companies rolling out aggressive offers which have ended up attracting the customers for the moment, but if we look in the long run, they have not been much beneficial.
Here’s what you can do:
You can start by identifying your users, and give offers to the right audience who are most likely to respond.
Analyzing their behavior and preferences in terms of offers claimed, signups, etc., and segmenting them into different groups based on their needs and interests might prove beneficial.
Conclusion
In the FinTech industry, customer loyalty is crucial for long-term success, and therefore, FinTech startups should prioritize building strong relationships with their customers to foster loyalty and increase retention.
The primary focus of FinTech startups should not only be to retain existing customers but also to attract new ones, gain a competitive edge, and grow their business.
