With so many platforms to choose from, customers have very little reason to remain loyal to one brand.
This article was written by Charlotte Day, Creative Director at Contentworks.
The online brokerage industry is as competitive as ever. With so many platforms to choose from, customers have very little reason to remain loyal to one brand unless the services they are receiving are truly exceptional. But in an industry with very little unique selling propositions (USPs), differentiating yourself from the competition isn’t always easy.
Assuming you’ve done all the groundwork to actually land customers, your goal should be to never let them go. Your customer retention rate is a metric that reveals whether your marketing and client care efforts are boosting your business or bleeding dollars from your business.
It can be measured by looking at the number of clients you still have at the end of a period relative to the number you had when that period began.
The formula is illustrated below:
Customer Retention Rate = ((E-N/S)) X 100, where:
E = the number of clients you have at the end of a specific period (e.g., week, month, year)
N = the number of new clients your business acquired during the given period
S = the number of clients you had at the beginning of the period.
Customer retention isn’t just about the performance of your marketing and sales teams. The number gives you a snapshot of your business development efforts and allows you to anticipate change in your growth expectations.
Research from Invesp shows that it costs as much as seven times more to acquire a new client than it does to retain an existing one. At the same time, your existing clients are about 50% more likely to try one of your new service offerings. These startling facts reveal that, while new business is important, retention is perhaps even more vital.
Why Reputation Matters
Industry research also reveals that retention is important from another important perspective: reputation. It has been shown that word of mouth is responsible for anywhere between 20% and 50% of purchasing choices. So, client retention doesn’t just guarantee steady business, but it ensures that customers have great things to say about your brokerage.
In other words, old customers can find you new customers. Nowhere is this more vital than the financial industry, where trust is extremely important. Brokers that are trustworthy and offer solid trading platforms are more likely to get good reviews written about them. This in turn generates warm Leads and maximizes conversion rates.
The Power of Customer Retention
To get the most out of any customer retention strategy, you need to calculate your CRR at regular intervals. Whether daily, monthly or annually, keeping an accurate log of your business’ retention rate is vital for long-term success. By keeping an accurate log of your retention rate, you can measure:
How many new clients your company gains
How long you’ll be able to retain each client if you continue with your existing marketing strategy
How much your company may grow in the future
Measuring customer retention also helps you determine if there’s a problem with your strategy. It’ll also tell you a lot about whether clients are happy with existing services and the impact of a new competitor on market share.
Together, these metrics can help your organization measure Customer Lifetime Value (CLV) accurately. Data from Invesp show that 76% of companies see CLV as an important concept for their organization.
It has also been shown that increasing retention by 5% can boost profits by 25% to 95%. If more financial service providers knew this, they’d be focusing more on the user experience and on upselling existing customers. This is in stark contrast to today’s business world, where 44% of companies place a greater focus on customer Acquisition versus 18% that focus on retention.
The financial service industry is a highly competitive space, especially for online brokers. It’s often extremely difficult for new brokers to compete effectively unless they’ve been operating for at least five years. In an industry where reputation is vital, it can take a while to lay a solid track record. That’s why online brokers especially need to cherish every client they land, especially early on.
Great Content Can Boost Retention
Effective customer retention often begins with a great content strategy. Developing engaging copy and personalization strategies can help your brand stand out from the rest. Conducting market research in the form of client feedback surveys is also a great way to learn more about the end-user experience.
And don’t forget social proof! One of the best ways to boost brand recognition and retention is to enable client testimonials and reviews. The social proof theory says that, when these metrics are positive, people are more likely to try your service.
This article was written by Charlotte Day, Creative Director at Contentworks.
The online brokerage industry is as competitive as ever. With so many platforms to choose from, customers have very little reason to remain loyal to one brand unless the services they are receiving are truly exceptional. But in an industry with very little unique selling propositions (USPs), differentiating yourself from the competition isn’t always easy.
Assuming you’ve done all the groundwork to actually land customers, your goal should be to never let them go. Your customer retention rate is a metric that reveals whether your marketing and client care efforts are boosting your business or bleeding dollars from your business.
It can be measured by looking at the number of clients you still have at the end of a period relative to the number you had when that period began.
The formula is illustrated below:
Customer Retention Rate = ((E-N/S)) X 100, where:
E = the number of clients you have at the end of a specific period (e.g., week, month, year)
N = the number of new clients your business acquired during the given period
S = the number of clients you had at the beginning of the period.
Customer retention isn’t just about the performance of your marketing and sales teams. The number gives you a snapshot of your business development efforts and allows you to anticipate change in your growth expectations.
Research from Invesp shows that it costs as much as seven times more to acquire a new client than it does to retain an existing one. At the same time, your existing clients are about 50% more likely to try one of your new service offerings. These startling facts reveal that, while new business is important, retention is perhaps even more vital.
Why Reputation Matters
Industry research also reveals that retention is important from another important perspective: reputation. It has been shown that word of mouth is responsible for anywhere between 20% and 50% of purchasing choices. So, client retention doesn’t just guarantee steady business, but it ensures that customers have great things to say about your brokerage.
In other words, old customers can find you new customers. Nowhere is this more vital than the financial industry, where trust is extremely important. Brokers that are trustworthy and offer solid trading platforms are more likely to get good reviews written about them. This in turn generates warm Leads and maximizes conversion rates.
The Power of Customer Retention
To get the most out of any customer retention strategy, you need to calculate your CRR at regular intervals. Whether daily, monthly or annually, keeping an accurate log of your business’ retention rate is vital for long-term success. By keeping an accurate log of your retention rate, you can measure:
How many new clients your company gains
How long you’ll be able to retain each client if you continue with your existing marketing strategy
How much your company may grow in the future
Measuring customer retention also helps you determine if there’s a problem with your strategy. It’ll also tell you a lot about whether clients are happy with existing services and the impact of a new competitor on market share.
Together, these metrics can help your organization measure Customer Lifetime Value (CLV) accurately. Data from Invesp show that 76% of companies see CLV as an important concept for their organization.
It has also been shown that increasing retention by 5% can boost profits by 25% to 95%. If more financial service providers knew this, they’d be focusing more on the user experience and on upselling existing customers. This is in stark contrast to today’s business world, where 44% of companies place a greater focus on customer Acquisition versus 18% that focus on retention.
The financial service industry is a highly competitive space, especially for online brokers. It’s often extremely difficult for new brokers to compete effectively unless they’ve been operating for at least five years. In an industry where reputation is vital, it can take a while to lay a solid track record. That’s why online brokers especially need to cherish every client they land, especially early on.
Great Content Can Boost Retention
Effective customer retention often begins with a great content strategy. Developing engaging copy and personalization strategies can help your brand stand out from the rest. Conducting market research in the form of client feedback surveys is also a great way to learn more about the end-user experience.
And don’t forget social proof! One of the best ways to boost brand recognition and retention is to enable client testimonials and reviews. The social proof theory says that, when these metrics are positive, people are more likely to try your service.
Devexperts Checks Off Type 2 SOC 2 Audit for Enhanced Data Security
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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