Banking Insight

Why You Need a Holistic Approach to Customer Communication

What’s your biggest asset? It’s not your building, your employees, or numbers on a spreadsheet. It’s the relationships you have with your customers. I’ve seen too many banks putting those relationships at risk. How? By sending only offer-driven communications to customers. Their reasoning: They want their marketing efforts to always generate immediate results and drive [...]

By |Relationship Management|

5 Must-Haves for an Effective Onboarding Program

When it comes to keeping customers, selling shouldn’t be your top priority — engagement should. This means committing to getting to know your new customers in meaningful, value-added ways. Doing so means you’ll minimize the chances of their defection and increase the likelihood of developing a lifelong relationship with these customers. Gallup data show that [...]

By |Customer Retention|

Make Sales by Providing Value-Focused Information

According to Gallup, a majority of bank sales come from approximately 60 percent of customers who already planned to open an account or buy a new service. Your bank doesn't have to waste any marketing or sales efforts on these customers — they're already going to open an account without any prompting. But what about [...]

By |Marketing|

For Customer Retention, Trust and Consistent Communication Go Hand in Hand

We all have loyalties to particular service providers — but we also recognize that there are plenty of opportunities to buy the same services from competitors. “People today want a relationship with their bank that is built on trust. Getting to know their needs takes more than a phone call or handing out a product [...]

By |Customer Retention|

How Customer Engagement Bolsters Your Value Proposition

Today, banks are facing low interest rate spreads and increased regulations. At the same time, they’re also struggling to offer a value proposition that resonates with customers. A Gallup Retail Banking Industry Survey said that banks need to do a better job of helping their customers see the value in what they provide. But that’s [...]

By |Customer Retention|

Communication and Accountability Are Key to Executing Campaigns

According to Fortune, less than 10% of strategies effectively formulated are effectively executed. Why? Failure to generate real, meaningful business results typically stems from a disconnect between the development and formulation of strategy and its implementation. And that breakdown can have a big impact on customer retention. Think of it as an internal wiring problem. [...]

By |Marketing|

Stay Connected with Customers Who Bypass Your Branches

At a conference session I attended recently, a bank president asked a highly relevant question. He wanted to know how his bank could build relationships with customers who have left the branches in favor of online and mobile banking. Only 16 percent of his bank’s customers, he said, still visit branches to make transactions. Granted, [...]

How to Keep Customers After a Merger or Acquisition

Mergers and acquisitions are on the minds of a lot of banks these days. On paper, they offer an opportunity to generate large returns and greater shareholder value. In reality, numerous studies have found that more than half of all mergers fail to deliver the intended improvement in shareholder value. Why? During an acquisition, many [...]

By |Customer Retention|

Five Ways to Produce Effective Cross-Sell Results

Many bankers spend a considerable amount of time developing their cross-sell strategy, only to see little return on their efforts. Why does this happen? According to Harvard Business School Press, 90 percent of well-formulated strategies fail due to poor execution. Now, I’ll take that one further: Failing to generate real, meaningful results typically stems from [...]

By |Cross Sell|

3 Steps to Create Cross-Sell Success

It’s easy to build a case for cross-selling additional products and services to customers. The hard part is developing a program that’s measureable and effective. Cross-selling is essential to developing strong, lasting customer relationships. Therefore, the first phase of creating a successfully cross-sell program should be a series of value-focused touch points that provides information [...]

By |Cross Sell|

An Effective Cross-Sell Strategy: Both High-Tech and High-Touch

Short of developing clairvoyant abilities, is it possible to determine the best product or service to offer a customer? It is when you use next-best, or predictive, modeling — the piece of data analytics that helps banks model and make predictions. In fact, any cross-sell program worth its salt should include this component. Like the [...]

By |Cross Sell|

Cross-Selling: It’s Important, But Often Neglected

It's one of the basic rules of retention: The more products you sell to a customer, the less likely they are to leave your bank. Just look at the proof. According to Bank Intelligence Solutions (BIS) from Fiserv, a customer with just one product at their bank will stay for about 18 months. Add just [...]

By |Cross Sell|

How to Measure, Monitor and Manage Through a Scorecard

The slow economic recovery and new government regulations are forcing banks to squeeze the last penny out of every dollar. Banks large and small have been looking for ways to conserve cash, do more with less, combine efforts and invest in only what matters—to improve performance and increase efficiency. To sustain growth, banks need to [...]

By |Analytics|

Develop a Dialogue with Your New Customers

You’ve done it. The prospect has opened an account with your bank. Now all you have to do is to keep them happy and move on to the next new customer, right? Attracting new customers is only the first step. Keeping them is a challenge. By getting to know your new customers and communicating with [...]

Show Customers that Their Opinions Matter

Like a lot of banks, you may routinely survey your customers. After all, soliciting feedback via surveys, assessments or questionnaires is an excellent way to discover how your customers feel about their relationship with your bank. But are you really using the information to help your customers? Asking for feedback without taking prompt action on [...]

By |Relationship Management|

Justify Marketing as an Investment by Measuring Your Success

As the economy continues to regain its strength, financial institutions large and small have been looking for ways to conserve cash, do more with less, combine efforts and invest in only what matters. According to the 2012 ABA Bank Marketing Survey Report, respondents listed budget and cost controls (25.3 percent) as the biggest marketing challenge [...]

By |Marketing|

Show Management That With the Right Tools Your Bank Can Accurately Measure Retention

Most senior management teams believe their bank has an attrition problem. Their assumption, however, generally is based on conventional wisdom. They see statistics showing the average attrition rate for banks in the United States at 14.6 percent. They hear a branch manager mention it seems like the bank has closed more accounts this month than [...]

By |Analytics|

Analytics: Your Next Best Thing to a Crystal Ball

In today’s competitive environment, it’s important for banks to maintain and grow customer relationships in order to sustain profitable growth. But as banks continue to attract new customers through acquisition, existing customer churn undermines this growth. “Churn” refers to both the percentage of customers who end their relation with a bank and customers who still [...]

By |Analytics, Customer Retention|

An Integrated Strategy Optimizes Customers’ Lifetime Value

When it comes to maintaining and growing customer relationships, too many banks are failing to integrate their strategies. Instead, they focus their resources in just one area. Customer acquisition, retention and cross-selling strategies aren't new ideas for bank marketers. Most banks execute acquisition campaigns to drive in more deposits. Most banks implement onboarding and cross-sell [...]

By |Analytics|

One Answer to Retention is Right in Front of You

With the uncertainty that lingers from the financial crisis fallout, banks continue to face the question of how to hold on to existing customers. One solution lies within a vast, yet largely untapped segment of their current customers. Yes, it's true that banks should continue to actively protect their top 20 percent of customers—those with [...]

By |Cross Sell|

Customers Would Pay More —if Banks Would Find Out What They Really Want

It's no secret that banks are being forced to deal with new government regulations. They're also searching for answers on how these new regulatory measures will impact their customer relationships. Many banks assume that eliminating free checking or charging a fee on debit cards would negatively affect customer retention and loyalty. But evidence suggests otherwise. [...]

By |Relationship Management|

Why Pre-Boarding is Essential to Attracting and Keeping Profitable Customers

It’s been long recognized that checking accounts are the workhorse of retail banking and create the best opportunities for other relationships to develop between the bank and its customers—check cards, bill pay, and the like. At any given time, 16 to 26 percent of the population is seeking a new checking account. However, your bank’s [...]

Re-Invent Your Customer Relationships with Business Analytics

If you’re over 40, you probably remember how banking used to be. Going with your parents to the neighborhood branch. Patiently waiting during grown-up chit-chat. Plastic piggybanks. A slowpoke sucker or tootsie pop as your parting gift. Back then, banks built relationships with customers on a personal level. Chances were good your banker knew your [...]

By |Analytics|

Turn Complaints into Opportunities—and Save a Customer or Two

One of the sure signs of a bad or declining relationship is the absences of complaints from the customer,” reports Harvard professor Theodore Levitt. “Nobody is ever that satisfied, especially not over an extended period of time. The customer is either not being candid or is not being contacted.” If you’re not getting customer complaints, [...]

It Will Take a Paradigm Shift to Replace Lost Fee Income

The banking industry continues to change at an unprecedented pace and is being confronted constantly with new challenges. According to the 2010 ABA Bank Marketing Survey Report banks listed regulatory changes (39.9 percent) and growth and retention (22.9 percent) as the biggest marketing challenges they will face in the next 12 months. The latest regulatory [...]

By |Customer Retention|

Relationship Recovery: An Overlooked Retention Strategy

Sure, customers come and go. But the ones who go often leave their bank in the dark about why they left—and worse, with no effort by the bank to win them back. Research shows that most customers actually come into the branch to close their relationship. It’s a prime opportunity to try to save the [...]

By |Relationship Management|

Value, Not Satisfaction, Drives Customer Relationships

Many banks believe they have a relationship with their customers based on customer satisfaction ratings. They tend to assume that customer satisfaction equates to relationship strength and an indication that clients will stay longer and buy more products and services. However, a survey by the American Bankers Association revealed that satisfaction is not a guarantee [...]

By |Relationship Management|

Myth or Reality: the 90-Day Window of Opportunity

I find that most industry white papers focus on the importance of cross-selling in the first 90 days of a new customer relationship. It’s a theory likely borne of the belief that cross-sell effectiveness declines after that point in the relationship. According to BAI, almost 81 percent of a bank’s opportunity to cross-sell happens in [...]

Nothing Replaces One-to-One Interactions

Technology has become a double-edge sword for the financial service industry. It has lowered the operating costs for banks and added convenience for their customers; however, it has also eroded the customer relationship. Customers no longer have to come into the bank to make a transaction, or leave the comfort of their homes to find [...]

By |Relationship Management|

PNA: Your Missing Link to Identifying Customer Needs

The account opening process is a perfect time to identify new customer needs because: Customers expect to spend time at the bank establishing their new account. Customers expect to be asked about and are more open to sharing personal information when opening a new account. Customers generally open new accounts in person, thus providing the [...]

By |Relationship Management|