If your credit union or bank is like many DIgitalMailer clients, the number of unengaged – and unprofitable – customers is staggering: between 20 percent and 30 percent. For an institution that serves 50,000 consumers, that’s 10,000 to 15,000 people … and loads of potential new business for the taking.
It’s time to wake them up!
For today’s financial institutions, there’s a real opportunity for growth by focusing on the number of unengaged members noted in the annual reports on profitability.
Reactivation and growth from unengaged members should be an ongoing strategy among marketers – with good reason. We know the cost to land a new customer is seven times more than maintaining an existing one, so motivating them to be more active with your institution could bump up your bottom line.
But is your credit union doing all it can to make these important connections? Consider my colleague: To obtain the lowest rate, he financed his credit union car loan indirectly through a local car dealer (opening an account with a $5 deposit was a no brainer to get the great rate). After the loan was paid off, he became the typical “unengaged” member. When I asked why he didn’t use more services, he said he rarely heard from the credit union – only a handful of newsletters over four years.
A wake-up call for financial institutions: Don’t assume members know your products or that they all connect through the same communication channel.
Instead, develop a marketing plan to attract inactive members. Make it a priority for the new year, incorporating current technologies and mobile communications when possible. Doing so is both efficient and cost-effective. One proven, best-in-class strategy to consider is onboarding programs that include new-user surveys.
Financial institutions have found success turning traditional new account openings into an onboarding process that includes a short survey to measure the needs and behaviors of new members.
While the survey can measure satisfaction with the account opening experience, it also can offer insights into why they opened the new account, their preferred communication channels, their financial goals and their use of financial services at other institutions – all valuable information to help reengage members. Some institutions expand their surveys to include questions that help determine key life events that might be around the corner – such as a marriage, new baby, college tuition or retirement. You also may learn who in the household will be the primary manager of the new account and key decision maker.
Another tip: Think of those unengaged as new members. Assume they are unaware of the many products and services available to them. You can easily modify your new member welcome campaigns and surveys toward educating those who are inactive. Share with them the benefits of working with your institution and invite them to participate in all you have to offer. Reach out to them … it might be just the nudge they need.
Today, reconnecting your unengaged memberss can be fast, convenient and inexpensive. All you need is a list of their email addresses and DigitalMailer can provide the surveys and email engine to get you started. With a deeper knowledge of those who are unengaged and the right technology to personalize onboarding communications, you can expect sizable results.