Transforming Transactions into Relationships

Many customers approach financial services like refinancing as single, isolated events rather than ongoing relationships. This creates a challenge for banks and financial platforms like SOFI and Lending Club, which must shift customer perceptions to foster long-term engagement. Successfully moving customers from a one-time interaction to a regular banking relationship requires overcoming significant mental barriers. In contrast, Avon has effectively developed a recurring transactional relationship with customers by offering a cash-back credit card, thus establishing itself as a primary banking provider. However, while Avon excels in customer engagement, it lacks the capability to assist customers in getting out of debt, highlighting the different focuses of financial institutions.

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