Free Checking Strategies: Increased Deposits - Decreased Acquisition Costs
written by Deb Kennedy | VP, Business Development
Office: 516-922-7887 | Mobile: 516-983-1617
Email:dkennedy@protocolmarketing.com
URL: www.protocolmarketing.com
What We Know
In today’s retail banking marketplace, direct response has proven itself to be a profitable marketing tool. However, challenges abound in the arena of checking account acquisition. Retail banks repeatedly suffer significant disappointment in the quality, quantity and cost of their new deposit customers. In particular, very low performance reveals itself as it relates to low balance, high cost per account and poor response. It is because of lackluster results such as these that the incremental cost of household data and processing is simply not cost justifiable.
However, as consolidation, increased regulations, privacy limitations and narrow margins continue to become the norm, successful banks and financial services companies are winning by combating these issues. They are becoming more heavily focused on acquiring and retaining loyal, profitable customers, while at the same time finding efficiencies to reduce costs.
- Convenience remains the #1 reason consumers switch banks.
- Bank growth is now driven by organic growth as a result of the merger wave of the last decade.
- Deposit acquisition is key, led by strong checking acquisition programs.
Two Traditional Solutions
For years, two basic approaches have existed in the marketplace, each of which builds on what we know. They, unfortunately, most often have resulted in lukewarm results. The first is saturation mailing. These are delivery route–based mailings targeted to the geography closest to the branch, usually up to 3–5 mile circles.
The second is targeted direct mail at the household level. This approach utilizes individual household data to target potential new customers.
New Approach Hits the Mark
Breaking into the marketplace is a new approach that, after extensive trials, has proven itself to be a winner. It’s called Highly Targeted Zip Saturation Mailings
We’re not talking about a simplistic approach to a delivery route saturation mailing to 3-mile branch circles. But rather, we’re talking about a highly sophisticated and successfully proven analytical approach. It is based on an extremely targeted delivery route methodology that minimizes client marketing expense and postage, while at the same time delivering exemplary results.
This solution provides financial institutions with a turnkey direct marketing program that is highly customizable to include corporate strategies and directives. Additionally, it features a targeted delivery route–based solution that is superior to traditional solutions, including:
- Competitor presence and proximity characteristics, as well as geographic based traffic flow and boundary proxies.
- Balanced targeting to optimize product offerings, as well as segment communication strategy.
- Relatively free and effective cross-sell/up-sell opportunity for current customers.
Analytics Make the Difference
The incorporation of targeted data is what makes this course of action exceptional. Sophisticated geo-demographic targeting methods are its primary key to success. Proprietary data sources and techniques are integrated to optimize mail volume and results-response, and balance metrics. The utilization of this data allows a footprint or market specific targeting model to be developed, as well. Moreover, the acquisition feedback loop and results reporting drive: Deb Kennedy, Vice President of Business Development for Protocol Integrated Direct Marketing, states, “This analytically-based Zip saturation approach will reduce overall marketing costs, of which lists and postage are just two of the key components, while increasing deposits. This has lead time and again to an impressive return on marketing investment for our clients.”
The Protocol Advantage Protocol Integrated Direct Marketing delivers solution-based direct marketing services that add value to the relationships between our clients and their customers. The Highly Targeted Zip Saturation Mailing was developed as a result of our extensive experience in retail banking deposit acquisition, specifically with Free Checking and CD products. Naturally, there are, and always will be, challenges and opportunities around every corner. When the marketing needs of clients go beyond free checking, Protocol’s marketing process includes the following components to ensure the marketing investment of their clients provides an acceptable return, consistently, over time. Therefore, Protocol also provides: From database marketing to analytics, customer support and direct mail, Protocol delivers integrated, innovative, and seamless services to help the financial industry find, interact with and keep customers through virtually every customer interface channel.
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