Grow your Retail Market Share
Trends have definitely shifted in regard to deposit acquisition strategies. Years ago, a Free Checking and Free Gift approach was very successful at driving high response rates and capturing new business. As free checking became the standard at most financial institutions, response rates and ROI diminished over time as the focus was no longer on Free Checking but instead on who offered the best incentive.
Many banks started to offer large cash or other high-value incentives for opening a checking account. Many consumers simply went through the process of opening an account primarily for the incentive itself, with no intention of utilizing the account. Stellar Strategic Group recommended a different strategy, one that offered an incentive that would attract the right consumer. Namely, one who was actually interested in switching their primary checking account. Our clients are able to garner new market share during this time while keeping acquisition costs and attrition levels much lower than the banks that offered high-value incentives.
Based on the sizable changes that have taken place in the financial industry over the last several years, we are now witnessing a return to an acquisition approach that is more focused on targeting vulnerable competitors in a given market. It was estimated that 16% to 26% of banking consumers were in transition annually over the last couple of decades.
Today, we are seeing even higher transition rates as free checking disappears at many banks and new restrictions are introduced causing negative publicity to rise in the news regarding a number of the national banks.
The previous few years have proven to generate the highest response rate in terms of account openings for our clients. Given plans in place by national banks to reduce their branch footprint in the near future, we see this opportunity existing throughout 2016 and beyond.
Our Deposit Directsm program has been an effective long-term retail strategy focused on generating new accounts, new households, core deposits, and enhanced revenue streams.
Our focus is to fuse traditional direct marketing approaches with digital marketing capabilities and enhanced data analytics to accelerate retail market share growth - resulting in new account opening increases of 50% to 150%.
With Deposit Directsm, your institution is able to communicate directly with consumers as to why your community-based bank or credit union is better for their needs than a large regional or national bank. With the combination of direct mail and digital marketing, we can reach a more targeted audience with compelling offers that generate better results. As a turn-key direct marketing program, Deposit Directsm incorporates the following into a program designed around your budget:
Stellar Strategic Group has worked almost exclusively with financial institutions since 2000, and we have gained the insights to help your marketing department analyze critical elements outside of our standard reporting options. If your institution would like additional reporting and/or analysis options we can customize a data solution to meet your needs.