Last year, for the first time since 1948, deposit levels declined. In the wake of these dwindling deposits, financial institutions are scrambling to drive deposit growth without overexerting their marketing budgets. Despite challenges like economic uncertainty and profitability pressures, banks can grow deposit levels on a budget by following these five steps.
1. Center the Standouts
The easiest and most productive way to jump-start deposit growth is to focus on nurturing existing relationships with top customers. Acquiring new customers can cost up to seven times more than retaining current customers, so the smartest banks will concentrate on maximizing retention strategies to boost loyalty and deposits while cutting marketing costs.
Working with established customers can also increase profitability. Banks can achieve returns of over 70% by targeting customers who already trust the institution, according to PwC research.
Banks also have access to a wealth of current customers’ data that they can leverage to determine which segments are the most valuable. For instance, institutions can use this data to extend relevant offers to high-depositing customers.
2. Make Enticing Offers
The secret to captivating and retaining customers is creating irresistible offers with appealing value propositions that drive engagement. Customers new and old are drawn to advantageous deals like industry-leading interest rates, affordable fees or product bundles that seamlessly integrate credit score solutions into their banking experiences. Elevate these offers with extra perks like:
- Fee waivers.
- Loyalty programs.
- Financial education resources.
Though some of these benefits have short-term costs, the long-term gains far outweigh the initial investment.
These offers can be further fortified through the power of personalization. Research from McKinsey & Co. found almost three-quarters of customers expect personalization and 76% get frustrated without it – banks that offer personalized deals can gain a leg up over competitors. Draw on data analysis to ensure the right offers are going to the right customers, using insights to help uncover patterns and predict customer behavior.
3. Employ Economical Marketing Moves
Marketing teams on a limited budget can still accomplish a lot with the plethora of affordable marketing channels available. Digital marketing options, like social media and email marketing, are relatively inexpensive and can help you meet customers where they already are: online.
Once your organization has deployed digital marketing outreach, it’s critical to calculate the return on investment of each channel. Prioritize those channels with the highest value to maximize customer engagement, even if it takes more than one “touch” for customers to engage.
4. Deliver Easy Banking Experiences
The smartest banks will concentrate on making the omnichannel banking experience an effortless one for customers. The following tips will help your organization deliver hassle-free banking interactions.
- Prevent customers from having to reenter information when switching between devices.
- Since many customers now use mobile banking first, ensure that your platforms are optimized for mobile use.
- Improve conversions and user experience by reducing the number of clicks and form fields to fill in your online processes.
Acting on these tips can help improve customer satisfaction and, ultimately, retention: as research shows happy customers are six times more likely to stay with their current bank than dissatisfied customers.
5. Cultivate Customer Relationships Digitally
Since 78% of customers prefer to do their banking digitally, having a digital strategy at your bank is crucial. Digital demand has skyrocketed partly thanks to its always-on functionality that allows users to access banking functions from anywhere, at any time. Importantly, customers who access their bank via a mobile app or website have the highest level of satisfaction. Almost 90% of customers believe their experiences with a company matter as much as the company’s products and services, so prioritizing your digital offerings is critical to customer engagement.
The benefits for your bank don’t stop there. Banks that digitally optimize their customer experience grow 3.2 times faster than those that don’t. Moving forward, strong, lasting customer relationships will increasingly hinge on the efficacy of your digital strategies.
Despite any dips in marketing budgets, teams can still retain customers by ensuring positive experiences that strengthen customer relationships and encourage deposit growth and your bank’s success.