3Customer Retention Strategies for Small Business Lenders
                     3Customer Retention
Strategies for Small Business
Lenders
Page 1
Table of Content
Introduction…………………….………………………………………..
2
Communicate With Your Customers 
Regularly……………………….2
Leverage Technology to Improve Customer 
Experience……………..3
Build  Trust  With  Your  Customers……………………..…………….
………4
Page 2
Introduction:
Retaining an existing customer is as important as acquiring
a  new  customer.  While  many  interesting  benefits  come
with  capturing  new  customers,  keeping  your  existing
customers  happy  and  satisfied  will  continually  result  in
greater ROI.
Customer acquisition is vital for small business lenders
to  be able to  maintain  business,  but  customer retention
needs to be the end goal. Of course, as a small business
lender,  if  you  become  successful  to  keep  your  existing
clients for an extended period, you can keep your business
floating and guaranteed money flowing.
But how do you create a  customer retention strategy
that  keeps  your  current  customer  engaged  and  happy?
Keep  reading  while  we’re  sharing  some  of  the  most
applicable customer retention strategies that will help you
inspire loyalty.
Communicate With Your Customers Regularly:
Keeping the lines of communication open is one of the best
strategies  to  retain  your  customers.  Whether  it’s  about
sending  periodic  email  communications,  providing
marketing  content,  or  offering  loan  products,  create  a
strategy on how you will stay in touch with the clients. Put
yourself in the client’s shoes and ask if this material you’d
be willing to receive.
Provide  your  valuable  clients  with  content  that  informs,
educates,  and  entertains  them.  Try  to  be  proactive  in
communicating  with  your  clients  and  provide  them with
value. If customers haven’t interacted with your financial
institutions for a while, you
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should reach out, take their feedback about your products
and services,  and re-establish your relationship.  You can
also  maintain  a  communication  calendar  to  manage
customer engagements and create opportunities to market
your products and services.
Top FinTech Trends that You Must Know
About
Leverage Technology to Improve Customer 
Experience:
In the past few years, advancement in financial technology
has  severely  transformed  the  lending  industry for
good.  Technology  has  the  power  to  take  your  small
business lending business to the next level, so you don’t
shy away from it and need to adapt quickly. If you’re not
proactive,  you  may
lose your  potential
customers.
This  is  why  it’s
imperative  to
embrace  the  latest
technology  so  that
you’re  constantly
improving  the
customer
experience.
Technology  can
help  you  identify
and  meet  your
client's  unique
financial needs and save their time, money, and efforts. For
instance,  you  might  consider  incorporating  online  loan
payments into your suite of offerings, or a loan origination
software to provide easy and fast loans to your customers.
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Besides,  some  financial  technologies  such  as  digital
account  opening,  video  collaboration,  APIs,  cloud
computing, cash flow forecasting software, and AI can
also help you improve your workflows and processes. From
gathering  and  analyzing  financial  data  to  manage  cash
flow,  automate  the  loan  approval  process,  building
innovative  credit
scoring  models,  and
more,  you  can
leverage  numerous
benefits  by  adopting
technology  in  your
small business lending.
Build  Trust  With
Your Customers:
When  deciding  to
purchase  financial
products  and  services
from a  small  business  lender,  most  customers  say  that
trust is the most important factor in their decision. If you
want to retain your customers, you need to win their trust.
 Reliability  is  a key    factor in building trust ,  so  your
financial institution should be consistent in delivering value
to your current customers.
Here are some effective ways to gain your customer's trust
and confidence:
 Provide top-notch customer service
 Offer customized financial products and services
 Streamline your loan application processes
 Share positive reviews and testimonials
 Be honest and transparent
 Ask for and act on feedback
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 Provide  your  customers  with  readily  accessible
services
So  these  are  some  of  the  many  excellent  strategies  to
retain  your  customers.  If  you  want  to  earn  more  loyal
customers, gain a competitive advantage, position yourself
as a trusted advisor, earn more word of mouth referrals,
and boost  your  revenue and profit,  you must  develop a
good customer retention strategy.
Sources:
  How  Banks  and  Financial  Institutions  Use  Customer 
Retention Strategies Effectively | Retention Idea 
  4 customer retention and growth strategies for banks 
2021 | Crowe LLP
References:
  https://www.investopedia.com/terms/r/returnoninvestment 
.asp#:~:text=Return%20on%20investment%20(ROI)
%20is,a%20number%20of%20different
%20investments.&text=To%20calculate%20ROI%2C
%20the%20benefit,the%20cost%20of%20the
%20investment.
  https://www.demandjump.com/blog/what-is-customer- 
acquisition
  https://blog.hubspot.com/service/customer-retention- 
strategies
  https://www.forbes.com/sites/forbesfinancecouncil/2021/0 
2/10/digital-transformation-what-the-future-holds-for-
traditional-and-alternative-lenders/?sh=390ef0c472c0
  https://www.forwardai.com/precise 
  https://cashvisionusa.blogspot.com/2021/04/everything- 
you-need-to-know-about.html
  https://mailchimp.com/ 
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