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You Are More Valuable To Your Bank Than You Realise!

Given the size of banks in Australia, and the reporting of large profits – many customers assume their value to a bank is low.

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You could also be forgiven for assuming a new customer is more valuable given the great refinance offers that are regularly advertised.

However, existing customers are more valuable to their bank’s than they realise! And simply speaking, the longer you stay with your current bank the more valuable you become!

When a bank retains one of their customers, there are several benefits for the bank which makes you (as the customer) increasingly important. These benefits include:

  • Increased value: When a bank retains a customer, it is more likely to earn more money from that customer over time. This is because customers who are happy with their bank are more likely to keep their accounts open, use more products and services, and refer their friends and family to the bank.
  • Reduced marketing costs: When a bank retains a customer, it does not have to spend as much money on marketing to attract new customers to replace what they’ve lost. Craggle research demonstrates that customers who are happy with their bank are less likely to switch to a different bank.
  • Improved customer satisfaction: When a bank offers a pricing discount to retain a customer, it shows that the bank is willing to work with the customer to meet their needs. This can improve customer satisfaction and loyalty. It feels good to be treated with Fairness doesn’t it!?
  • Increased brand reputation: When a bank is known for offering good customer service and competitive pricing, it can attract new customers and improve its brand reputation. This can lead to increased profits and market share. Australian Banking Association research has demonstrated that 52% customers who are happy with their bank proactively recommend their bank to others.

So what does this mean for you?

As you can see, you are more valuable to your existing bank than you realise. Getting a better rate on your Home Loan doesn’t necessarily mean you have to refinance. You can contact your bank directly and request they improve your current home loan rate – but be aware, this can be a tricky process and you might not get the best outcome.

Craggle understands this and is here to help you navigate those tricky conversations. By signing up to Craggle’s platform (in as little as 3mins!), we can mediate the rate conversations with your current bank and other banks in the refinance market to ensure you are getting the fairest deal possible!

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The Craggle Team

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