Increase Customer Loyalty with Improved On-Boarding

November 22, 2011 • jpurcell • Communications, Database Marketing, Direct Marketing, Financial • No Comments

The first 90 to 120 days are the most important time to engage new clients.  During this time frame, customers are most active in purchasing new products and services. They are also more vulnerable to defection if their experience does not match their expectations.

With these facts in mind, many banks, credit unions as well as other businesses use ‘On-Boarding’ programs to convert new acquisitions into loyal customers. Unfortunately, most programs fall short of expectations due to two common problems. The offers are not relevant because they are not customized to each customer, and all communications are offers to sell another product. This reinforces the belief that companies only communicate when they want something, such as a new purchase.  A recent study commissioned by the CMO Council illustrates how banking clients want more education and the most effective messages are timely, personal and relevant.

Below are five key tips for any On-Boarding process:

1. Take it Slow – Like a first date, don’t push too hard.  Show appreciation to the client for taking the first step.  This is a great time to reinforce the initial purchase by explaining your unique marketing position.
2. Listen – Create ways for customers to share more information with each interaction.
3. Use Multiple Channels – Start with direct mail that directs the user to a personalized web page (Purl) that offers more information. When they open the Purl, ask them to submit their preferences toward receiving future communications.
4. Use Data Wisely – Show the customer you listen with relevant offers. For example, if the customer indicates they are 12 – 18 months from buying a car, hold back your car loan offers.  When the time is right, send your offer with a reminder of the information they previously provided.
5. Know When to Sell – Customers expect and want good offers, but they also want education and appreciation. If you skip the relationship building, they are likely to be less loyal and ignore your offers.

These are just a few tips for building a truly successful program.  Contact us for a free consultation or evaluation of your On-Boarding program.