The financial services landscape is shifting rapidly. Fintech startups and agile competitors are carving away market share of personal finance consumers from traditional financial institutions by offering hyper-focused technology, innovative products, and seamless services that meet highly specific needs. This fragmentation means consumers now have more options than ever, making it critical for financial institutions to create experiences that foster deep, lasting engagement.
To keep customers engaged and build long-term loyalty, financial institutions must focus on creating a “sticky” customer experience (CX)—one that not only meets expectations but consistently draws people back.
What Exactly is Stickiness?
Stickiness is often confused with customer loyalty or retention, but it’s a distinct concept. While loyalty reflects a customer’s preference for a brand, and retention measures how long they stay, stickiness is about the likelihood that a customer continues engaging and making repeat purchases. It’s what keeps customers actively involved, fostering deeper relationships and sustainable revenue growth.
Why Stickiness Matters in Financial Services
Stickiness isn’t just a nice-to-have—it’s a revenue driver. Consider these compelling statistics:
- A mere 5% increase in customer retention can boost revenue by up to 29%.1
- Approximately 65% of a company’s revenue comes from just 8% of its most loyal customers.2
- Businesses have a 60-70% chance of selling to an existing customer, while the odds drop to just 5-20% for new customers.3
- 76% of consumers who have purchased insurance from their bank or credit union are interested in buying additional coverage.4
Clearly, investing in a sticky CX isn’t just about keeping customers—it’s about maximizing the value of every relationship.
What Makes a Customer Experience Sticky?
A truly sticky experience isn’t built on gimmicks or short-term incentives. Instead, it’s about delivering ongoing value, eliminating friction, and fostering genuine trust. Let’s break down the key ingredients.
1. A Seamless First Impression
First impressions set the tone for the entire customer relationship. Whether someone is discovering your institution for the first time or exploring a new product, they should feel immediately confident in the experience.
For example, consider the insurance sector. More than a third (35.6%) of consumers don’t even realize their financial institution offers insurance. Yet, interest in purchasing insurance from primary financial providers is rising, especially among younger generations—43.9% of Gen Z and 39.2% of millennials have become more interested in the last three years.
Creating an exceptional first impression means offering:
- Effortless sign-up and onboarding processes
- Clear, intuitive digital experiences
- Personalized welcome journeys that address individual needs
2. Proactive Engagement & Thoughtful Personalization
Many financial institutions assume that customers will seek out information when they need it, but the data suggests otherwise. Nearly half (48%) of consumers say they haven’t received any communication about insurance from their financial institution in the past year, despite 85% expressing a desire to improve their financial awareness.
A proactive engagement strategy—leveraging digital channels like mobile banking, email, and in-app notifications—keeps customers informed and involved. But engagement alone isn’t enough; personalization is the key differentiator.
Customers respond more positively to messaging that’s relevant to their lives. By leveraging data-driven insights, financial institutions can:
- Recommend products based on life stages and behaviors
- Tailor messages to individual financial goals
- Deliver timely offers that align with specific needs
3. A True Omnichannel Experience
A seamless, interconnected experience across multiple touchpoints ensures customers can engage with financial services however they prefer. Some customers still value face-to-face interactions, while others prefer mobile apps, chatbots, or a combination of platforms.
To achieve true omnichannel stickiness:
- Maintain continuity between digital and in-person interactions
- Ensure consistent branding and messaging across all channels
- Provide easy access to support and self-service tools
When customers feel recognized and understood regardless of how they engage, they’re far more likely to stay connected and engaged.
4. Building Trust Through Transparency and Human Connection
Trust is the foundation of any long-term customer relationship, yet it’s becoming harder to earn. In fact, 71% of consumers say trusting the brands they do business with is more important than ever.
Trust is built through:
- Clear, honest communication about products and services
- Transparent pricing and terms with no hidden surprises
- A commitment to financial education and customer empowerment
When customers trust their financial institution, they feel confident in making decisions—leading to deeper relationships and greater long-term value.
Stickiness: The Key to Long-Term Customer Engagement
The financial industry is more competitive than ever, and customer expectations continue to rise. Creating a sticky customer experience isn’t about quick fixes—it’s about delivering real value, fostering trust, and making every interaction seamless and engaging.
When financial institutions prioritize stickiness, they don’t just retain customers—they turn them into lifelong advocates.
How We Can Help
Interested in building stronger customer relationships and increasing engagement? Offering the right financial products, including insurance, can help deepen those connections. Contact us today to explore how we can support your efforts in creating a truly sticky CX.