Financial wellness is defined by the United States Consumer Financial Protection Bureau as “a state of being in which you can fully meet your current and future financial obligations while feeling secure in your financial future and making choices that allow you to enjoy life,” as cited by Annuity.org.[1] This is a sense of security that most people strive for, but many have trouble achieving.
When you provide financial wellness services to your customers, your likelihood of acquiring and retaining better customers who make smarter choices, borrow more money, and accumulate more wealth may increase. Increasing the number of these financially stable customers is crucial for business success.
So how can financial wellness offerings create better business opportunities?
1. Build customer loyalty
Loyal customers are key to the success of your business. Long-standing customers tend to spend more, try more new products, and provide more useful feedback than newer customers.
By investing in the financial well-being of your customers, you could establish trust while creating longer-lasting relationships with the people you do business with. This could ultimately lead to higher customer retention and an increase in revenue for your business.
2. Help customers manage their financial stress
Financial stress can have serious negative consequences if left unchecked. 88% of Americans see room for improvement in their overall financial wellness, and 71% say they are likely to set financial goals in 2023.[2]
For this reason, it’s important to provide valuable financial information and resources to your customers as well as reassurance that they are not alone.
Financial services such as credit alerts and identity monitoring can empower your customers to take a more proactive approach to reducing their stress and achieving financial wellness.
3. Encourage good customer habits
Financial well-being is not attained overnight. For customers to feel confident with their finances, they need to practice good habits on a regular basis and see meaningful progress as a result of their efforts.
Friendly reminders and encouragement for sticking to a solid financial plan are effective ways to keep your customers in good standing, and they also portray your business as a trusted resource for best practices. Tools like credit score trackers and financial calculators can offer valuable insights to your customers as they strive to maintain healthy financial habits.
Providing financial wellness services for your customers could have a positive impact on your business and your bottom line. When your customers show loyalty to your business, feel less stress, and maintain good habits, they may be more likely to continue doing business with you and potentially refer your products and services to friends and family.
By helping your customers achieve financial well-being, you are more likely to set your customers and your business on a path to success.
[1] Annuity.org. 2022. Financial Wellness. https://www.annuity.org/personal-finance/financial-wellness/#:~:text=Financial%20wellness%20is%20a%20state%20of%20being%20in%20which%20you,U.S.%20Consumer%20Financial%20Protection%20Bureau.
[2] Lincoln Financial Group. 2022. Most Americans See Room to Improve Their Overall Financial Wellness in 2023, Says New Lincoln Financial Group Study. https://newsroom.lfg.com/most-americans-see-room-to-improve-their-overall-financial-wellness-in-2023-says-new-lincoln-financial-group-study.htm
