In an era of profitability challenges, financial institutions need to find ways to increase new households. New movers are a prime market opportunity. Because new mover households are making life changes and may be in a new geographic area, they are more than three times as likely to respond to a new checking account offer as established area residents. A targeted and effective acquisition program can deliver new households cost effectively to your financial institution.download pdf
With the cost to acquire deposits increasing and fewer traditional bank deposit dollars circulating among an increasingly large playing field of competitors vying for them, like retail establishments, investment firms,...
Until these questions are answered, it’s fruitless to start acquiring new account holders. In fact, it can be counterproductive. Acquiring anyone and everyone that walks through your doors will lead to higher attrition rates, more churn, and the costly cycle of gaining new accounts simply to replace the ones that are leaving.
While financial institutions can deploy a number of approaches to revive valuable but underperforming branches, one option to consider is an acquisition campaign to increase the number of profitable checking account customers and boost the branch’s bottom line.