Insights:The good news and bad news about banking customers
A recent J.D. Powers research showed that only 4% of banking customers switched last year. So the good news is, barring any major issues, you have a good chance of retaining a large percentage of your bank or credit union customers. The flip side of that coin is where the bad news lies.
With so little migration of banking customers, how does a financial institution grow?
Keeping in mind that a large portion of young people new to banking tends to begin at the bank their family uses, this uncommitted demographic group isn’t likely to help fuel exponential growth.
For a large majority of people, switching financial service providers just isn’t worth the perceived hassle. In most cases switching banks only happens after a person or business becomes so dissatisfied with their bank that they are willing to put the effort into find and open accounts with a new provider. While unfortunate for the company they are leaving, it provides a great opportunity for banks and credit unions that have positioned themselves to benefit from this change.
While attractive offers and technology can be helpful in attracting new customers, a strong brand image has been shown to be one of the biggest factors in the decision process.
That’s because most people are uncomfortable putting their money into banks and credit unions they have never heard of or only know a little about. Building your brand image over years creates a feeling of comfort and confidence for you target market. On-going brand building also means that when a customer is at the breaking point with their present institution, they already have a positive impression of your organization — making the transition easier.
The bottom line is a well-defined brand that includes clear messaging, identifiable look and a relatable position offers a true market advantage and competitive edge in capturing the elusive bank switcher.
To see how some financial institutions have built brands that pay dividends, click here to visit the Insight Marketing Design website portfolio. If you’d like to talk to one of our financial marketing experts about your brand, call us at 605-275-0011.