Why Email Marketing Should Be A Core Part Of Your Cross-Selling Strategy
MAY 3, 2011:
Dave Wencel, Business Development Representative
Guest Blogger Event Marketing Marketing Strategy
In today's challenging economic and regulatory environment, it is becoming ever more important for financial institutions to grow and find new income streams and customers. With the cost of acquiring new customers being five to ten times the cost of retaining an existing one, banks and credit unions need to keep in mind that their current customers and members can provide the key to the most efficient use of marketing funds. As such, cross-selling is very important in growing client relationships and wallet share for banks and credit unions.
So how successful has your institution been in enacting an effective cross-selling strategy? On average how many products are your customers or members using? As long ago as 2007, Wells Fargo Bank was getting a lot of press for their successful cross-selling strategies. At that time, 20% of their customers were using eight products from the bank - far above industry average for the time. How do you compare? Are your customers or members using your most profitable products, such as credit cards, loans, mortgage products, etc. or are they going to bigger name competitors? Are your customers or members champions of your brand, helping you reach your target audience? Though it can be challenging to do, establishing a strong cross-selling program will bring your institution great rewards in reduced customer acquisition costs and increased income through greater use of your financial products.
As most financial services marketers know, effective cross-selling also means engaging with your customers and members on a regular and recurring basis. Providing them with relevant financial information and product offerings that they care about will let them know that your bank or credit union truly values their relationship, instill loyalty and make them champions of your institution's brand to their friends and families in the community.
Email marketing is one tool that provides a powerful platform to do just that. With email, you can reach your customers or members at their homes and workplaces when they are most likely to be considering and planning their financial needs. A well tailored email marketing campaign provides an opportunity to reach them with educational and relevant financial information to help in making decisions that fulfill their financial needs. Email can also be tailored to focus specific product offerings to specific customer and member demographics so that they get the most relevant information. At Priority, we like to talk about utilizing a "triggered" approach to email, which keeps your financial institution in touch with your audience on a regular basis.
Email's popularity is no doubt related to the fact that it's a very measurable platform. As you are evaluating your marketing plans and spending this year, remember email as an economical and powerful tool to grow relationships with your customers or members. Have you had any success in employing triggered emails for cross-selling?
This blog post was originally published on the Priority Blog at priorityresults.com/blog. Priority Integrated Marketing is now BlueSpire Strategic Marketing.