Whether you do anything with it or not, odds are that your FI is sitting on a pile of known (and assumed) data about your potential and current customers or members. But what exactly does this mean for your marketing efforts? CCO for Haberfeld Sean Payant outlined some considerations during his session at Brand Forum.
Here are some data-driven marketing strategies you should consider.
When you're a community or regional bank or credit union, you more than likely have a finite geographic reach. National finance brands have the luxury of an inundation of branch locations that transcend geography. So how can a community bank maximize its audience share in its marketplace? The bright side is that branch locations are directly correlated to perceived convenience—Payant highlighted a study indicating that the majority of new account openings come from those who live closest to branches, with the highest rate (30 percent) at or less than one mile away.
And this goes beyond simply residences. Where people work and play can also lend a convenience factor when they're proximal to one of your branches. Through GPS data, you can ascertain where locals tend to commute or spend time after hours and target them based on this non-residential element of geography. Payant pointed out that this approach to targeting, versus a scattershot approach (i.e., targeting everyone in the community who's not already a customer or member), yields 33 percent better results.
What you know about your customers' or members' wallet share can also play to your advantage. Quite often, consumers will engage with a variety of financial-service providers, and you may not always be each consumer's primary financial institution. So how can you convert more of your existing customers into primary accountholders with your FI? Start with outgoing payments. You see the credit card accounts and loan accounts that your customers are sending payments to—use this awareness to upsell superior but similar products from your own institution or refi opportunities.
Payant supplied a statistic worth noting—73 percent of primary FI relationships still start with a checking account. Use this entry-level product to gain more long-term, devoted customers or members.
It can get discouraging to be reminded of the level of resources national bank and finance brand competitors have on their sides. But one element in which community and regional banks are often more well-equipped is serving customers personably—because you actually know who they truly are. Your smaller ratio of branch-to-consumer is a competitive advantage. So capitalize on this by engaging with hyper-personalization in your communications. Make sure your in-branch experience reflects this appeal—ensure your frontline staff has pertinent information to carry on a true one-to-one conversation with each customer.
And show you trust them—"We treat people like criminals before they're even customers," Payant said to describe the tendency of requesting so much of a consumer before he or she has officially been onboarded (i.e., two forms of ID, multiple parties present, utility bills, etc.). Remove barriers to entry.