Since we have suggested a Summer and a Winter customer acquisition promotion in the last couple weeks, of course several bankers wanted a suggestion for Fall. As such, we will let you in on our best innovative idea of what we are working on. This idea has not been done by banks so you could be the first in your area. Timing is important as September 12th through October 24th is one of the best periods to market bank products (HERE) based on five years of data. During this period of time, both households and businesses think about their future and are open to making changes to their bank. In fact, historically this is one of the best times to get customers to switch.
The promotion we are suggesting could be termed the “Automation Account” and takes a mid to upper-tier relationship deposit account for business or retail and wraps a home or office automation and/or security feature with it. This account is designed with the following features:
- Open an interest-bearing checking account that receives at least six months of direct deposits of $2,000 or more. Have a combined minimum balance of $20,000 or incur a monthly fee of $25 to $55 (depending on if it is a retail or commercial account)
- Utilize one other fee income service such as debit card, cash management or international services.
- Add the appropriate other retail or business class checking attributes (free foreign ATM, free processed items, etc.) in line with a mid-level account
- Receive a home automation kit to include thermostat, controller, smoke alarm, lighting control and camera.
Why This Promotion Works
In addition to timing, this promotion ties cost savings, technology, environmental concern, safety and security into your bank – all good attributes to associate with a financial institution. The promotion also appeals to Millennials and Gen X, both strong cohorts to attract to your bank. Wrap this promotion in an “Our Bank is looking out for you” message and you have a solid campaign to support your brand.
From a profitability standpoint, the account should generate over $50k of average balances per account while producing a lifetime value in excess of $2k. This is net of the approximate $435 of wholesale cost of the system including drop shipping. The account is designed to appeal to the small business or lower high net worth household that falls into the mass-affluent category.
There are several wholesale packages that banks can partner or purchase to include Nest, Insteon (Microsoft), Honeywell and others. These packages can be centered on security, energy efficiency, entertainment or a combination. As mentioned, this promotion can easily be adapted to the home or to the small business office.
Summer is a perfect time to start planning a fall account campaign. A home/office automation campaign is unique among banks and gives you that technology-forward association that banks are looking for. The promotion attracts a high-value demographic and the promotion is designed to produce a material positive lifetime value just with its base attributes (not counting additional cross-sell). If you are looking for a unique promotion, leveraging the current trend towards home automation will add value to your new customers and aligned your brand with strong emotional attributes of safety and efficiency.
Submitted by Chris Nichols on July 01, 2015