The Financial Brand Insights - Fall 2022

The Art of Reengaging Dormant Banking Customers

Different Customer Journeys: Onboarding vs. Ongoing New customer onboarding is a different experience for customers compared to maintaining a healthy ongoing relationship with current customers. The onboarding journey is important and can predict the likelihood that an institution retains a customer, but there are important differences in the requirements of each journey. In short, for onboarding, it’s necessary to have a well-planned and efficient process that focuses on easy account set-up and strategically timed, regular communication. Automating the onboarding process using the right marketing technology to ensure on-point communication is a key to success. Attrition is greatest in the first year, so thoughtful implementation of your onboarding strategy is non-negotiable. Building trust happens during this phase, so build intentionally. In contrast, the ongoing customer relationship is about building a deeper, more personal relationship. A classic Javelin Research study, “Convert ‘Silent Attrition’ into Banking Engagement and Profits,” summarized the difference: “Promote engagement first, cross-sell later — Make it convenient for the customer to move through the onboarding and activation phase of their lifecycle, and then build deep relationships with targeted cross-sell.” Your ongoing relationship with current customers should be marked by personalized communications, more product-based contacts like strategic cross-selling, and loyalty activities/ offers that acknowledge longevity. Know the difference and execute accordingly.

Be Proactive and Prevent Disengagement Before it Happens

The best engine is the kind you keep fueled and running regularly. When you keep existing customers engaged and happy, the payoff is not small. As Khalid Saleh, CEO of conversion rate optimization agency Invesp, reminds us, “The probability of selling to an existing customer is 60% to 70%, while the probability of selling to a new prospect is 5% to 20%.” A CRM with robust marketing automation tools is a best friend for this task. For example, automated trigger campaigns are a great way to schedule regular and personal communications with existing customers. Types of useful triggers include balance changes, loan maturation and milestone birthdays such as age 40 or 65 when life changes impact financial interests. For CRMs that have analytical tools, you can couple the age profile with wealth and demographic data to more successfully offer retirement planning or life insurance products to the best customer candidates. In addition to trigger campaigns, capitalize on personalized contacts like automated birthday emails and cards or a product offer generated from targeted segmentation. Offering a current customer the right product at the right time sends the message that you are paying attention and keeping their needs and wants front of mind. Use all the data you gather about your customers, whether through the core banking system or even more efficiently through a CRM, to know more about who the customer is. Then do the work of having a relationship with them. Demonstrate you know your customer at every digital transaction and marketing opportunity. As behavioral marketing software company Wunderkind notes, “According to Accenture, 91% of consumers are more likely to shop with brands that recognize, remember, and provide relevant offers and recommendations.” Don’t forget loyalty events for current customers including educational events, anniversary-related discounts or product specials

By David Acevedo SVP/National Sales Director at 360 View

“Engage first and cross-sell later” is the key to transforming inactive customers into active ones. Through disciplined, on-point communication, financial institutions can awaken dormant relationships and deepen these customer connections, setting the stage for improved sales and profitability.

The engine that takes you nowhere is no engine at all. Whether it needs a jump-start or a simple punch on the accelerator, the engine that makes motion is the one that gets you to your destination. For financial institutions, that destination is a profitable year driven by an active, engaged, and profitable customer base. If bank marketers would spend as much energy, money and focus keeping current customers engaged as they generally spend trying to acquire new customers,

the improved bottom line would be surprising. Not only do engaged, product-active customers add to the profit column, but converting inactive customers into active ones changes the loss column and translates to a double win for the bottom line. Using proven marketing tools and implementing a plan to rev up that engine, and then to keep it going, is something your financial institution should be all about. Here’s what you need to know.

Significant Payoff: The chances of selling to an existing customer is as much as 70%, versus 20% for a prospect.





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