The incredible rise of digital banking means more account holders are managing financial transactions online or on their devices. As a result, financial institutions like banks and credit unions must move quickly to meet their account holders where they are.
One way that banks and credit unions can achieve big wins is by delivering more personalized information to their account holders. For example, banks can use mobile technology, such as mobile push notifications to alert their customers of relevant products or services they might not be aware of through their mobile banking app. And with so many younger account holders managing their finances on their phones, it’s critical that FI’s reach them on their channels.
This may sound daunting for community banks and small credit unions, but it doesn’t have to be. Below we’ll break down some suggestions for leveraging the power of communication to retain customers, if you’re a bank, or members, if you’re a credit union.
Engage with customers using channels they’re already on
Your account holders are on their phones, so if you have a mobile banking app (and you should), why not take advantage of that to communicate with them about new products and services, changes to branch hours, or even weekend community events you’re sponsoring? Research has shown that the financial industry enjoys particularly high opt-in rates for push notifications. If you provide value to your account holders through those notifications (meaning not just information, but how they can take action on that information), they’re more likely to engage with you.
Segmentation = success
To achieve maximum success, we recommend segmenting your audience. That means to divide your audience into smaller groups with different data points in common. For example, you could create an audience segment based on people who opened a new savings account in the last 30 days. You might inform them about special interest rates for new account holders or other perks they now have access to as a result of opening a new account. This messaging might be different for a different group of account holders, say, those have an auto loan with you.
Segmentation allows you to adjust your communications based on each account holder’s specific needs. This way, they feel that you are really trying to get to know them rather than messaging them because you’re desperately trying to tell somebody – anybody – about how great you are.
Delivering the same content to different audiences can work and might even be necessary in some cases (eg, alerting account holders to new company-wide policies). But more often, your messages should relate to specific needs, interests and locations. A study found that businesses typically communicate by using a single message and then using that same message to communicate to different groups of financial stakeholders. In plain marketing terms, this is not an effective approach. Remember to tailor your communications across audiences.
Looking to improve engagement with your account holders? Larky's nudge® creates tailored push notification communications delivered through your mobile banking app, with 5x more engagement than traditional marketing methods. Curious to learn more? Contact us today!