The success and failure of a forex brokerage often come down to those things that a company is able to do well. Retention has to be one of those things done well. Yael Warman from Leverate explains…
Whilst sales conversions are often the focus due to the cost of leads and the profit potential in new customers, ultimately it is the retention of a customer that has the greater impact of maximizing profits.
Here are some methods to help improve customer retention.
1. Solid technical integration
When the markets are moving, fortunes are made or lost, and interest and excitement is high. Retention staff must be able to maximize this opportunity and reach as many clients as possible in a short time. This means that they need good software integration that allows them to see their client’s activities. The solution must run the gamut of needs at this time, from the profit focused (such as an automated messaging system to sell the possibilities of the market), to position protection (for clients close to margin who need to deposit to protect their position). Even in low volatility times, access to a good integrated CRM and software offerings will ensure that the regular day to day retention activities are handled in the most efficient manner, effectively freeing agents up to spend more time on deposit creation.
2. Keep an eye on the competition
Poor retention numbers, particularly a sudden drop from the deposit numbers for a particular agent, can often point to a change in the competitive landscape in that zone. Forex is a highly competitive industry, where the competition is constantly evolving and offerings are always changing. What may have once been a unique retention offering may no longer be unique. It may be that your bonus structure is no longer attractive or that your offerings or spreads are no longer competitive. It is critical to keep a constant eye on your competition to identify how to best offer an attractive package for your traders. With everyone advertising their selling points, this is quite easy to do and will also give you a sense of which companies are your strongest competitors.
3. Listen to your retention agents feedback… and act on it
The goal of retention is to keep every customer, and it is the retention agent who is commissioned with the task of following up with clients who have chosen to leave. Customers are surprisingly honest about their decisions to leave the company, and will often confide in an agent with whom they have had a strong relationship. As the representative on the ground working with clients, retention agents are often able to identify issues well before it is apparent to upper management. By creating a forum that allows management to receive feedback from the retention (and sales) staff, ensures that issues are picked up and contained, before they become significant problems.
4. High quality customer support
The perception that the retention buck stops with the retention agents is understandable, but a good customer support team is probably just as critical. Customer support are in many ways the public face of the company, they answer the phones, handle technical issues and cover the full service hours, so customers find themselves talking to the same people whenever they call. For the client, a poor customer support experience can do lasting damage, and a good customer support division shows a dedication to customer service that can create a trust that will retain a customer more effectively than any other activity.