Retail Bank Marketing hasn’t come very far in my lifetime. We still see financial promotional campaigns that show happy people, kids and parents, nice homes, vacations and graduations. They’re all the things that money helps us enjoy. But marketing for banks somehow misses the boat: according to the ABA, the average bank loses 20% of their customers every year. Customers shop for the best rates. And bank loyalty couldn’t be weaker.
Better Retail Bank Marketing
Retail Bank Marketing ’s job is to: 1) Bring in new customers 2) Keep existing customers loyal Every banker I talk with tells me how their postcard/special rate/newspaper ad brings in lots of new customers. They’re fleeing their old bank, lured away by a great deal. Then, a few months later, they get lured away to another bank. I guess you could say that this bank’s “too successful” at its #1 goal. It’s just not good at goal #2.
How the ABA measures retail bank marketing success
The American Banker’s Association measures customer loyalty. Their research finds that the average bank will lose 20% of their customers every year. These customers just switch banks, and you’ve lost them forever. They also find that loyalty is measured by how many financial products your customer has: 1 product? They’re already getting ready to leave. 3 products? Still not impressive. 5-8 products? They’ll be loyal. Unfortunately retail marketing for retail banks only usually succeeds in getting your customer to use 2-3 products at your bank. So they eventually leave you.
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Retail Bank Marketing Tool
There is a retail bank marketing tool that just focuses on goal 2: Informer Messages on hold don’t reach everyone in town: they only reach your customers or those who are interested in banking with you. They put the time that your customers waste on hold to use: for them, and for you. They inform your callers. They tell them about your best products, and how you’re different from the competition. They deliver the right information to the right people at the right time: when they need banking help. Do you have a marketing tool that can promise that? If not, call for a free 15-minute strategy session so you can “beat the odds” and “hold on” to more customers every year. Or you could try toasters.
Find out more by calling us at (800) 862-8896, or click here for a free consultation