20 Things Financial Institutions Should Do (But Don’t)
Here are 20 priorities for retail financial institutions. This is what some are doing, but most others can’t, don’t or won’t. To some this might seem like a list of “duhs” — things that seem obvious, but nonetheless go ignored or unaddressed. What would you add to the list of marketing opportunities and low-hanging fruit for financial institutions?
1. Differentiate
Any financial institution that looks like, acts like, or sounds like other banks and credit unions can’t complain when they are forced to compete on rates, fees and price. Differentiation is the key to a strong brand.
2. Personal communications
You hear financial institutions bragging about how personal they are all the time, but Tim McAlpine, President of Currency, wonders how often they send handwritten thank you cards for loans, mortgages and renewals. How often do your employees make phone calls to customers thanking them for their business? Imagine how much love you could buy with a simple expression of appreciation. How many direct marketing messages do you send that start with “Dear Valued Customer…?”
3. Mobile solutions
If your financial institution isn’t offering some form of mobile banking service currently, there had better be plans underway or you risk falling behind competitively. Demand for services like remote deposit, SMS, and apps for smart phones and iPads is growing rapidly, and are quickly becoming common consumer expectations. (See also, The Very Mobile Future of Retail Banking.)
4. Identify profitable customers
How can you focus on cultivating profitable relationships if you don’t first understand who profitable customers are, why they are profitable and how they got that way.
For credit unions, Paul Stull, SVP/Arizona State Credit Union, says that “if you look at your most unprofitable members, you will find that they