Banks, insurance and other financial institutions are finding it increasingly hard to win new customers and to grow business value.
The rise in high-tech fintech companies has raised the bar for the whole finance market. New and old brands alike need to up their game to win new customers. But acquiring lots of new accounts is just the first step, those new customers need to be active – depositing their earnings, buying new products and services or generally spending. How to grow regular active engagement and brand loyalty is just as important.
Many financial brands are already offering incentives and rewards to attract new customers and motivate behavior. However, today’s offers often fail to stand out and excite.
Benefits with real value
It can cost upwards of $500 to acquire a new customer, only to lose them again or see them quickly become inactive. It can cost as little as $5 per month to drive active engagement and deliver measurable value.
Bundling a popular subscription service as part of your finance product grows engagement and value by over 32%, whether that is a fitness service to keep health insurance customers healthy or a security service for high net worth banking VIPs.
Reward, motivate or sell
Add powerful incentives that encourage the desired behavior from customers:
- Offer Amazon Prime shopping when a customer takes out a new mortgage
- Gift a Netflix plan for customers with active accounts for all the family
- Give Spotify to listen to in the new car purchased with that car loan
- Encourage customers to save or buy more – save 10% on a wide range of services, with every $5000 deposited each month
Alternatively, simply sell the full range of top subscription services and earn. Your customers would rather discover new services and buy from you, in one place, than have to visit multiple vendors to sign up and manage their subscriptions. Make customers’ lives easy and put yourself at the heart of their subscription economy.
Simply own your customers
It’s easy to give gift cards, discount vouchers or cashbacks to reward loyalty and behavior. But redeeming vouchers is often hard to track, making it hard to measure success. Many customers find codes and cashbacks confusing and simply don’t bother, which results in no benefit and no increase in motivation, engagement, or loyalty.
By simply offering the benefits directly, managing the customer signup and entitlement lifecycle gives you full ownership and control. It allows you to seamlessly transition free promos into paid subscriptions paid directly from your customers account – providing additional revenue streams.
Learn more about how banks and credit unions can win in the “subscription wars”.