Getting a greater return on your account holder acquisition investment means finding innovative ways to capture increased market share while keeping costs low. While the theory is elementary, how can such a feat be achieved in practice?
Many financial institutions have tried to grow their consumer base by touting the traditional expensive avenues, such as television advertising. However, what they really need to do is find ways to innovate and make themselves more relevant to reach more consumers.
When financial institutions leave antiquated acquisition strategies behind in favor of innovative digital tactics, they can acquire new customers or members in highly targeted ways to unlock more effective measurable growth. This is made possible by purpose-built digital banking tools, integrated capabilities, data-driven campaigns, and referral programs designed for the digital age.
Here, we explore the most future-forward strategies for financial institutions to leverage today as they seek to grow business for tomorrow.
Previously, financial institutions viewed differentiation as connecting their consumers to the solutions and resources they could only find at their own institution. Why would they ever settle for marketing off-the-shelf tools? This mindset has since evolved to become more consumer-oriented.
Instead, offer a digital banking platform specifically built to be customized for your unique consumer’s needs. Neural Payments has found that consumer-friendly tools designed specifically for financial institutions can lift new account openings by as much as 20%.
By seamlessly integrating solutions such as P2P within digital banking, you can deliver the differentiation you need in your marketplace and help you connect with new prospects. They can also create a user experience that consumers prefer over generic solutions.
In contrast, as highlighted in the Alkami Digital Sales & Service Maturity Model Report, even large, multinational financial institutions that adhere to outdated business models tend to underperform because they rely on status-quo vendors and standardized solutions, rather than on customized tools built in-house or with partners.
More than 80% of consumers have used a P2P service, with many using them weekly or even daily. This means your financial institution also needs to get into the P2P game sooner rather than later. P2P tools integrated right within digital banking can make payments easier for consumers while helping financial institutions to reduce costs and attract new customers or members– the ideal combination for maximized return on investment and a better overall consumer experience.
With the right tools, you can focus your marketing efforts and attract new customers or members with a cost-effective approach. For example, paid social media campaigns allow you to target specific user demographics and interests. For this reason, paid social media can expand your reach in a more cost-effective manner when compared to traditional advertising. Custom landing page content can also help you convert even more leads and further improve return-on-investment (ROI).
When your customers or members are happy, they share that happiness with others. Referral programs can convert existing account holders into ambassadors who can recruit new potential customers or members for your financial institution. Incentives associated with referral programs can bring in new customers or members at a fraction of the cost associated with traditional account holder acquisition, dramatically increasing ROI. In fact, referrals can bring in new leads at 2.5 times the rate of other marketing channels due to the trust that’s built into word-of-mouth messaging.
Taking this concept a step further, tools like a white-labeled person-to-person (P2P) payments solution within your digital banking share with new prospects – your customers’ or members’ payment recipients – the convenience of doing business with you. This turns integrated P2P into a method of referral for your brand.
60% of young adults indicate they would switch financial institutions for improved digital banking. With this in mind, the old adage reminds us: it costs far more to gain a new customer or member than it does to keep an existing one. Suppose you can keep your existing account holders engaged by continually meeting and predicting their needs, offering them the convenient tools and features they want and need. With such a strategy in place, you will earn their loyalty and more easily retain your profits. To keep their loyalty, you must commit to a digital experience consumers love and continually measure and respond to their feedback.
Even for the most people-centric financial institutions, we can see that digital tools can play many roles in helping to improve return on investment and reducing acquisition costs. In the Digital Sales & Service Maturity Model Report, we discuss how financial institutions can outperform by being open to change, incorporating digital tools based on data and strategy, removing friction, and staying agile and responsive. Integrated digital banking products like white-labeled P2P can do all of this.
At Neural Payments, we’ve seen firsthand how these integrated payments solutions can help financial institutions reclaim deposits, grow business, strengthen security, and reduce cost for greater return on investment. With integrated payment functionality in place, your financial institution is poised to remain front and center, eliminating the need for your account holders to rely on third-party payment services.
To learn more about Neural Payments, visit neuralpayments.com.
