By Paul E Kissel
Financial institutions invest heavily in winning new customers. But here’s the bigger question:
How are you keeping the ones you already have?
Retention is harder than acquisition — and far more valuable over time. The irony? Most institutions already have the data they need to understand their customers better. But that data isn’t being used to drive meaningful action.
Let’s talk about how that can change.
The Problem
Across the industry, I see the same patterns:
Everyone gets the same email, regardless of how they actually use their accounts.
Customers are grouped by age or account balance — not how they behave.
Engagement signals like app logins, branch visits, or service requests? Mostly ignored.
The result: missed opportunities to actually connect with customers in ways that matter to them.
A Better Approach
What if we grouped customers based on how they actually engage?
Not just age or product type — but:
How often they use online banking
Whether they rely on branches
If they respond to offers
Whether they’ve gone quiet
By looking at patterns in everyday behavior, we can spot natural customer groups — and tailor how we serve them.
What You Might Discover
Here are four common customer types I’ve seen across institutions:
| Group | What They Do | What to Do About It |
|---|---|---|
| Digital Regulars | Use the app often, rarely call or visit | Offer new features, reward digital loyalty |
| In-Branch Loyalists | Prefer face-to-face service | Keep branch staff informed and empowered |
| Rate-Switchers | Move money around based on offers | Use early-warning signals and retention incentives |
| Quiet Accounts | Low activity, slipping away | Try a well-timed nudge or exit survey |
These aren’t just labels — they’re signals. Signals that help you reach the right people with the right message at the right time.
A Real-World Insight
During an examination at a midsize financial institution, I noticed something familiar:
They were flagging certain customers as “inactive” just because they weren’t using digital channels.
But those customers were still showing up in person — talking to tellers, asking questions. They just didn’t use the app.
That realization sparked a bigger conversation: Were these people really inactive, or just underserved digitally?
It led to a shift in thinking — away from assumptions, toward behavior-based engagement.
Why This Matters
This doesn’t require a massive transformation or a 12-month tech rollout. It just means:
Looking at customer behavior
Spotting key patterns
Matching your response to the customer — not the category
Most institutions already have the data. What’s often missing is the mindset.
How to Get Started
If you’re in a credit union, regional bank, or fintech, here’s one way to begin:
Bring together data on how customers interact — logins, calls, visits, transactions
Look for natural groupings or trends (even in Excel!)
Give each group a name — and test different ways of engaging with them
No AI. No dashboards. Just smarter customer understanding.
Final Thought
Retention gets a lot easier when you treat customers based on what they do, not just who they are.
If you’re exploring better ways to use your customer data — or want to share what’s working in your shop — I’d love to connect.