In this new era of banking, banks need to start rethinking the way they handle their customers. In the past, most banks just looked at how many new customers they acquired each month or how many new checking or CD accounts were opened.
But today, banks have to think about cross-selling or up-selling their current customers to additional products or services. The more products or services a customer has with a bank, the longer that customer will stay.
Banks must begin analyzing their customers to see what other products they could use. Could they use a home equity loan? A car loan? A safe deposit box? Money market account? Online bill pay? Remote capture?
Ask yourself: How well does your bank know your customers?
Two of the most important services a bank should promote to their existing customers are 1) online bill pay and 2) remote deposit capture.
Once a customer has set-up all of his or her vendors and payables into a bank’s online bill pay, they’ll have second thoughts about ever moving to another bank. And once they get set-up with remote capture, just the thought of changing banks will make them sweat.
So instead of sitting around trying to decide what interest rate you should pay to get more customers, try looking at what other products or services will keep your current customers’ money in your bank until death and beyond.
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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].
