A few years back, my cable went out suddenly during a football party.
The wings were hot, the beer on ice. We were all sitting eagerly in front of the television, decked in orange and blue . . . and then, just after the first play of the game: blackout.
I was so angry that I vowed to never pay for another service from them ever again. I called a satellite company the very next day and made an appointment. But when the serviceman arrived, he had disappointing news: too many trees for satellite.
And it didn’t stop there. Not only did I have cable service through the cable company, they also provided us with Internet and phone service. In the end, I stayed with them. Bottom line: dropping them was too much trouble.
Cable companies are experts at cross-selling and up-selling customers, making themselves so “sticky” that it becomes very difficult for customers to switch providers. Now, finally, banks are following suit. But there is still a huge opportunity for growth.
Take online bill pay, for example.
Though paperless billing continues to gain popularity with both businesses and consumers, research shows that only half of online banking users are currently enrolled! This is despite the fact that those who use these services are among a bank’s most loyal and profitable customers!
So much of marketing your bank is successfully up-selling and cross-selling products and services to existing customers and then providing them with exceptional customer service so that they stay happy and become customers for life.
Online bill pay is an easy sell because of the benefits it provides. Customers – both business and consumers – can access their accounts remotely, make secure payments at any time without having to write and mail a check, transfer funds between accounts, and view and print past statements. Businesses also benefit by setting-up online payment arrangements with vendors, which saves time and cuts administrative costs.
The bank also wins. In addition to saving thousands of dollars a year in printing, posting and administration, enrolling customers in e-statement and online bill pay programs increases customer loyalty. A customer’s bank account is linked to multiple vendor and creditors, ultimately making it more difficult for them to change banks.
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Neal Reynolds has worked with hundreds of banks and credit unions around the country helping them to grow core deposits and market share without growing their marketing budgets. Contact him at [email protected].
