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Mar 13
2009
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Dude, you Rock!Posted by Dan Fisher in Beyond the Bank   |
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It is one thing to give away a frying pan for a large deposit or to send a “Welcome” letter to a new customer, but what about the tweener? That is a young saver between the ages of 10 and 12, who is at the stage when savings and money are just beginning to matter. When they open a new account such as a statement savings with maybe an ATM card, they receive a thank-you letter that they will not bother to read. You wonder after their initial visit to your institution, will you ever see them again? Yeah, when grandma sends them the check, but these days, grandma may send them a gift card. Then you’re out altogether.
The key to the young customer is providing products and e-services that are relevant to their lifestyle, not your bank’s operational model. E-mails, social networking, and text messaging should all be integrated in the new account process. Also, incentives that connect to the lifestyle of the young user should become a staple of your product offering.
A welcome video from a bank officer (dressed in a Tommy Bahama shirt) on YouTube announcing to your newest customer, “DUDE you ROCK!” What an opportunity to make a statement and connect! Hey, it’s cheaper than the price of a stamp, too.
To further relate, send your new customer who reaches a certain level of savings an iTunes card or WebKinz certificate. Ask them what video games they play and send them a new game, or if they have a prepaid cell phone, send a minutes card. All of this information could be collected as part of the new account process. Create a zone for the young customers or better yet, create a website for them altogether with links to their favorite places.
The objective is to offer products and services that connect to the lifestyle of your customer in the context of the technology that they use rather than trying to force them into your way of thinking. The young customer does not need a reason come into your bank as much as they need a reason to bank with you! In other words, Dude… REACH OUT!
About the Author
Dan Fisher is president and CEO of The Copper River Group,
a consulting firm headquartered in Fargo, N. D., that focuses on
technology and payment systems research and consulting for community
financial institutions. For nearly 30 years, Fisher has worked in the
financial industry using technology to improve the bottom line. He was
CIO of Community First Bankshares (now part of BancWest), has served as
a director of the Federal Reserve Board of Minneapolis, the chairman of
the American Bankers Association Payment Systems Committee, a member of
the Independent Community Bankers of America Payments Committee. Fisher
has written numerous articles on banking technology and the payments
system. He has authored or co-authored six books and recently
published a book titled, Capturing Your Customer! The New Technology of
Remote Deposit. You can contact Fisher at dan@copperwombat.com.P.S. To understand Dan's nickname, check out "About the Wombat" on his website, www.copperwombat.com.
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Stephen Chase
said:
| If the traditional banking industry takes anything away from this great eye-opener is that the lifestyle of the tweeners, unbanked, and underbanked are somewhat similar and that the traditional banking mentality is very far removed from what that lifestyle actually is. hence the importance of marketing to this subculture (shameless plug). I look forward to see if the banks are listening Dan, Thanks! | |
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The Wombat
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Steve, The challenge is trying to remain competitive and relevant both at the same time. It is difficult for us to move away from an approach or an infrastructure that we have invested a great deal of time in. So, it oftentimes comes down to when not so much what. Timing being everything?. Thanks |
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Stephen Chase
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Wombat, I definitely do understand that it is difficult for the traditional banking community to move away from your infrastructure and I would not suggest that (well maybe I would in certain areas but that's another blog). So for arguments sake, keep the same infrastructure, it has a great foundation, but it's time for renovations. I also understand in most instances bankers should be bankers. BUT now you have a few bad seeds in the GENERAL financial sector giving banks a bad name. This is part of brilliant response by ABA President and CEO Edward Yingling http://www.ababj.com//content/view/733/121/ ?Here?s the bottom line,? said Yingling: ?ABA is working with the media and with the Congress to try to correct these misconceptions, but we can?t do it all. You have to do it, too. You must make it part of your plan to communicate with your employees, your customers, your communities, your local press, your state legislators, and your Congressmen. Because if you don?t do it, there?s a vacuum. And that vacuum will be filled by the wrong message, you can bet on it. ?We are facing a fork in the road,? Yingling told the bankers. ?Down one path is a great future for traditional banking. But the other path is dominated by policy mistakes, and if we let those mistakes happen, we?re going to be handcuffed for decades to come.? Not to mention the article on the FDIC Bank Report of the unbanked and Underbanked Feb 2009 said "The majority of banks ? 63 percent - offer basic financial education materials, but fewer participate in the types of outreach efforts that are viewed by the industry as most effective to attract and maintain unbanked and Underbanked individuals as long-term customers. ?http://www.fdic.gov/news/news/press/2009/pr09015.html What are you going to do? Ignore the public outcry and say "hey it's not us." and think that it won't effect your traditional infrastructure? Where do you think a lot of the uproar is coming from? The people. The media hype. But still...the people. The youth, the unbanked and Underbanked. The communities that have come together. The people.... of the lifestyles that unfortunately the majority of the banking community is detached from and not doing enough to make a direct affect. With that being recognized, why is it that I am still having a hard time for financing (another shameless plug) from the FDIC or the banking community for a program that: -Educates and financially empowers the unbanked and Underbanked community. Think improved standards with CRA for the bank. Think a proactive measure by the FDIC to reach the unbanked and Underbanked themselves. Think educating the lifestyles that you are detached from that happens to NOT be in the traditional banking model. Banks, FDIC, Community, Society?benefits. -Helps improve credit scores without risk to the bank. The aforementioned benefits apply to the FDIC, banks, the community etc . -Improved outlook in the media and from the community by being involved in a program that has an approach to specifically cater to their lifestyle that financially educates and empowers them. Again, all benefits apply to everyone here. - It gives the banks a partnership with a program that has the invaluable information regarding the unbanked and Underbanked. The information that the FDIC reports the majority of the banks are lacking (as well as obviously the FDIC). This is verifiable and trackable statistical data that is needed to help the economy. - It gives banks the ability to watch the unbanked and Underbanked habits to better serve them and guide them to become bankable. Obviously minimizing the credit risk exposure to the bank, making for a better and more educated member of the bank and society's financial infrastructure. Did I mention it also has a 58.49% projected ROI the first 3 years? I think we all get my point by now. I am just frustrated with the gorilla in the room and I believe I have a solid program to address it. Most of all, I just cannot figure out what to do to break this mold of the traditional banks to make them understand?.understand before...as the ABA President and CEO Edward Yingling said "?We are facing a fork in the road,? Yingling told the bankers. ?Down one path is a great future for traditional banking. But the other path is dominated by policy mistakes, and if we let those mistakes happen, we?re going to be handcuffed for decades to come.? Some of those mistakes are coming from the wrong public perception, the misinformed masses. You can do something, but do something effective. Most of all, we don?t need a few banks, we need many. There are anywhere between an estimated 23-78 million households waiting. Stephen Chase Chase@subculturenyc.com |
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