How To Increase Wallet Share With Personalization

More than a third of your members bought a product from one of your competitors last year. Stop the defections with smarter marketing tactics.

 

By Third Degree Advertising & Communications, Inc.

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More than 33% of your credit union’s members bought a product from one of your competitor banks or credit unions over the past year, according to a loyalty study conducted by Bain Capital.

The good news is you don’t have to continue missing out on that business. You have a greater ability to predict product interest and influence your members’ decisions than you realize. The same study indicated that after receiving an offer, about one third of respondents opened a credit card they hadn’t planned to apply for. The same went for products like checking accounts and mortgages, at a lower but still significant rate.

How do you retain the potential defectors and spark latent interest in specific products? You have to understand your members and tailor offers to their needs in a way that captures their attention.

Understanding Your Members

You have a lot of personal information about your members in your core processing data. Your credit union’s data tells you who you’re sharing your members’ wallets with (which gives you a great retargeting list), helps you understand your members’ life stage (which you can use to profile likely product needs), identifies members who have recently joined or opened a new product (which you can use to tailor on-boarding information), and more. The key is determining which data is most relevant to your credit union’s objectives and using it to help you more effectively target your marketing efforts.

Personalizing The Offer

When consumers feel that their personal information is being used to customize and improve their experience, they’re more likely to trust and feel loyal to you.  According to the E-Tailing Group, 72% of retail shoppers say personalization makes it easier to find the products they want. Failure to personalize content can be devastating: 43% of consumers were so frustrated about receiving irrelevant information that they ignored all future communication from a brand, says Gigya.

The bottom line is that consumers want personalization. In fact, there’s a lot they would be willing to trade for online content that’s tailored to their personal interests:

  • 25% would give up chocolate for a month

  • 21% would give up mobile/smart phone for a day

  • 13% would give up sex for a month

Think about what those statistics (from a Janrain study) say about the power of personalization. And you already have the data available to do it.

Driving Results

Personalization is a powerful tool for onboarding new members and increasing product usage by current members. But simply using a variable name field and targeted lists isn’t enough. Through the rise of the smartphone and digital engagement, consumers have become conditioned to expect interactive experiences. That’s why tools like short-form personalized video are on the rise. When you combine customer data with a visually engaging and interactive medium, the results are significant.

The use of short, personalized video such as SmartVideo has been proven to deliver increases in the number of products per customer, revenue per customer, cross-sell of value added services, offer acceptance rates, and positive experience ratings, according to SundaySky. The typical open rate for an email is about 11% to 22%. Adding video can increase that to about 30%, and adding personally relevant content skyrockets open rates to the 40% to 60% range. 

With one-third of your members cheating on you with another bank or credit union each year, can you afford not to communicate with them in a more personalized way? The financial institutions that incorporate interactive tools like personalized video to support their onboarding and cross-selling efforts are the ones who will win the share of wallet battle. Learn more about SmartVideo for credit unions.

Third Degree works with progressive credit unions to help them successfully navigate the realities of a competitive marketplace. With more than a decade of experience in the credit union industry, Third Degree provides strategic counsel, brand development, and results-generating marketing and engagement programs.

Company Bio

Third Degree works with progressive credit unions to help them successfully navigate the realities of a competitive marketplace. With more than a decade of experience in the credit union industry, Third Degree provides strategic counsel, brand development, and results-generating marketing and engagement programs.

This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.

If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at ads@creditunions.com or 1-800-446-7453.

 

Aug. 10, 2015


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