Referral Engineering Platform: New Analysis Mention Me it was found that online conversions, including new customer sign-ups, subscriptions, and referrals for financial services brands, outperformed all sectors in Q1 2022.
Research from Nutmeg’s customer advocacy platform shows that British consumers are more likely to talk to their friends and family about financial brands and seek their advice.
Insights found a 59% increase YoY in quarterly conversions, compared to Q1 20201, while sector referrals (when a new customer gets referred by an existing customer), increased 20% from Q1 20201. Online growth was reported by the finance sector, which is notable because sectors such as retail have managed to balance out the highs of the pandemic.
Once the dominant banks and incumbents, challenger banks are now emerging. This is increasing the importance of having strong brand positioning within the financial sector. The financial crisis has consolidated consumer preferences toward online services. Customers have more power than ever and can access information and choose their own terms. Transparency, reliability, accountability and transparency are key.
Simon Dring, Head Retail Insights at Mention Me., “A quick search online yields plenty of recommendations for switching strategies and how to play the financial sector’s reliance on rewards rather than loyalty. This new data suggests that’s not the right strategy for long-term brand growth. After all, once a new customer has claimed their reward, their head can easily be turned by another provider’s offer. In comparison, customers who sign up to brands via their friend’s recommendation already have a positive outlook on your brand, and as our data shows tend to result in better, more loyal customers.”