SOLUTIONS GUIDE. A Targeted Approach to Better Acquisition

Transcription

1 SOLUTIONS GUIDE A Targeted Approach to Better Acquisition

2 Smart strategies for acquiring new account holders. A checking account is the anchor relationship between your financial institution and your account holders. It s the account they use most frequently and the foundation of their daily financial lives, supporting not only checking activity but debit card usage, online payment, and mobile payments too. Unfortunately, not all checking accounts make you money. In fact, some models show that 70% of checking accounts are unprofitable and 20% don t even cover variable expenses. 1 The American Bankers Association estimates the annual cost to maintain a checking account is between $250 and $400 for most banks. 2 This makes it vital that your acquisition strategy target new account holders that will be as profitable as possible. Consumer churn is another concern. When it comes to finding new account holders, it s an opportunity. As it relates to retention, there s some risk. Recent studies show that 17% of households intend to obtain or replace a checking account in the next 12 months. 3 That makes it even more important to focus on acquiring active account holders who will open other, more profitable accounts such as credit cards, car loans, and mortgages, in addition to their new checking account. 1 New Strategies for Customer Acquisition, BAI Executive Report, October The Profitability of the Average Checking Account, BankDirector.com 3 The Anatomy of Consumer Switching Behaviors, Digital Scientists, 2015 Deluxe Enterprise Operations, LLC. All rights reserved. 2

3 Finding your best customers. Since the 1990s, most financial institutions have used direct-mail saturation campaigns for account acquisitions. These spray and pray approaches blanket the area around branches with offers and dangle incentives to get customers in the door. While this approach opens new accounts, they don t always bring in active, profitable account holders. Plus, the high costs of saturation campaigns make it even harder to see a good ROI. Deluxe takes a different, more targeted approach. The right customers drive growth. Active account holders are: 3.7x more likely to open a credit card 6.3x more likely to open a brokerage account 6.7x more likely to open a mortgage 4 Our Checking Acquisition program combines national data with your own historical customer data to define and reach the right target market: new-to-bank checking households who tend to look, act, and transact like your best customers. This is the special sauce that optimizes results and sets our service apart. You already have the data. Now you can put it to good use. This analytically driven approach outperforms traditional saturation models exponentially in both response and ROI. With Deluxe, you can increase both your market share and revenues, while getting the most out of your marketing spend. Deluxe Marketing Solutions Checking Acquisition program for consumers and small businesses delivers a 200% lift in response, balances gained, cross-sell, and ROI compared to traditional campaigns. 5 4 Convert Silent Attrition into Banking Engagement and Profits, Javelin Strategy & Research, p.8 5 Based on Deluxe customer data Deluxe Enterprise Operations, LLC. All rights reserved. 3

4 SOLUTIONS GUIDE A Targeted Approach to Better Acquisition Ongoing analysis, ongoing results. To ensure you re getting the most out of your marketing spend, you need measurable results. Deluxe Marketing Solutions provides total transparency as well as ongoing ROI analysis. As experts in marketing analytics, we will show you the results and use them to shape future campaigns. Our targeting models are continually updated based on response analysis, which means we are always learning and improving. And each campaign is configured to meet your specific KPIs. While others like to talk about response rates, Deluxe uses lift-versus-control modeling to evaluate and quantify the true impact of our programs. We measure the success of each campaign against a control group, just like any scientific study. Then, we use analysis to deliver an ongoing strategy and produce measurable results. The results speak for themselves: 20-25% improvement in cost efficiencies 200% lift over control A fully outsourced, expert strategy Deluxe contact groups typically outperform control groups by 70-90%. Deluxe Marketing Solutions can optimize results for both large and small financial institutions alike. We can provide resources and expertise to extract data and identify your best target audience. We can fully execute campaigns and provide continued analysis with greater cost-efficiency and effectiveness. Or, we can act as an extension of your marketing department to help increase cost-efficiency and ROI. At Deluxe Marketing Solutions, we believe in algorithms, analytics, and efficiency. Quite simply, what we do works. Deluxe Enterprise Operations, LLC. All rights reserved. 4

5 Data security you can count on. With the increase in high-profile security breaches targeting financial institutions in recent years, security is top of mind for everyone. Banks and credit unions are wary of sharing sensitive account holder data with new vendors and rightly so. Deluxe is a trusted partner with proven integrity and the highest levels of security. We have supported financial institutions for over a century. Why risk sharing your information with an unknown player? A smart approach. A long-term solution. For well over a decade, Deluxe Marketing Solutions has been raising the bar on marketing performance and helping financial institutions, small and large, achieve their acquisition goals. You ve weathered the recession. You ve adapted to today s increased economic and financial regulation. The time has come for growth. New checking accounts are a powerful place to make that happen. With Deluxe Marketing Solutions, you can make the most of these efforts. Our cost-effective, proprietary model can be configured to your specific needs, audience, and market footprint. And with Deluxe, you can count on powerful results. READY TO MAKE THE MOST OUT OF YOUR NEW ACCOUNT ACQUISITION? Contact us today. deluxefinancialservices@deluxe.com CALL 1 (800) Listen. Solve. Deliver. Deluxe Enterprise Operations, LLC. All rights reserved. 5