Part 2 of the follow up on The Financial Brand and Matthew Doffing ‘s article on “How Data Can Defend Against Deposit Attrition”. Check my LinkedIn history for part one, and of course read the article! This post touches on feedback and questions I’ve had from people reaching out. Reach out with follow up questions.
“Ben, it sounds like you have complicated data models. I don’t have the time for that.”
No, not really. It’s being smart about using the data you have. The complexity of data in financial institutions can be overwhelming. One tip lies in understanding customer loyalty, which is often driven by the value of your products and their ‘stickiness.’ In a modern institution your digital engagement is a huge driver of loyalty. Loyalty is less about how much clients love you (not that that’s not important!).
Engaging products like Savvy Money, bill pay, digital wallets, cards for subscription services, and user-friendly tools can be crucial in retaining clients and speaks to the need for financial literacy. Most clients won’t step foot in a branch or talk to a bankers, so you better hammer away at getting usage with these tools. Identify gaps and get after it.
The Financial Brand has tons of research on why clients choose an FI, why they stay, or why they leave. Use this data to focus your efforts. I’m confident a well thought out research paper on client needs is more valuable compared to a bunch of bankers sitting in a conference room talking about what they think clients think is important.
“Ben, I really don’t want to email my clients every day, and I don’t have the resources to do that if I wanted to.”
Then don’t. Some marketers are very annoying. Like the daily emails urging you to buy new shoes, buy more of something that takes half a year to use, or buy more of something I just bought…you know what I’m talking about.
The goal should be to use data to create hyper-relevant, timely communications that actually reflect client needs. This approach not only reduces the annoyance factor but also strengthens your position as a financial partner. Less communication that’s more relevant and valuable to the client. (Especially in the age of AI created content.)
“Ben, it’s all so expensive and we’ll never spend the money.”
Setting up data-driven marketing platforms might be expensive initially, but it pays off in the long run. People forget that a focused and relevant approach will lower costs, while making results more productive.
An example is reducing traditional marketing expenses by using your data to be more focused on your best leads. Spend less on mailing to recover your investment in these tools. Alkami Technology
‘s Mark Leher
also notes in the article how you can find low engagement clients who may leave, costing you future revenue. Account for this loss and risk when making decisions.