A bank marketer has a 120-day window from the day a new customer signs on to upsell them into additional products to make them sticky, profitable customers. After that, your cross-sell window slams shut and you’ve got what you’ve got.
Eighty-percent of all cross-selling to a new banking customer happens in the first four months – now that is pressure! As a bank marketer, you simply cannot afford to be wrong during this critical period of opportunity. And if you’re not using data to drive your engagement with the new customer in that crucial onboarding phase, you are going to fall behind your competitors. Again, pressure!
Well-known data scientist and motivational business speaker Leonardo Da Vinci once said, “I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do.”
It is obvious that Da Vinci was thinking specifically about bank marketers and the intense pressure they are under to be “right” in the process of onboarding a new customer.
“Knowing” and “doing” are heavily reliant on your ability as a marketer to know what technology to use and how to use it to leverage data-driven insights. The lack of skills and resources to use the right tools are the biggest hurdles to effectively using data.
Think about your own onboarding messaging and ask these questions:
- What messages do you send to your customers?
- Why that particular messaging?
- When do you send them those messages?
- How do you communicate with them?
- Why do you communicate with them when you do?
- What percent of your new customers buy additional products in the first 120 days?
- What was the ROI of the new checking account promo we just ran?
Data should part be a big part of answering those questions. And if you are using the right tools, and using them correctly, the answers should instantly be at your fingertips. That is where technology is today.
You should have these three goals in mind:
- Build and implement a multichannel onboarding process that improves engagement, share of wallet, retention and the long-term value of relationships
- Leverage available customer data and append relevant big data to improve cross-sell performance
- Integrate direct and digital marketing for optimal response and performance
Once you have all that mastered, then you can tackle an even more important question. How do we improve the profitability of our new customers over the long run?