Abstract
Overview
New customer onboarding communication is vital to cement relationships, but
current best practices are vague or one-dimensional, severely limiting
loyalty and success in cross-selling efforts. Based on extensive
quantitative data and interviews with several top North American banks and
technology providers, Javelin devised a strategic onboarding communication
model that provides banks with a springboard for segmenting and targeting
customers to help drive high customer lifetime value from the first touch
point.
Primary Questions
- What critical customer information variables do financial Institutions
need in order to cre-ate segments for their onboarding communication strategy?
- How can financial institutions use demographic and consumer preference
data to determine optimal channel and message content for their onboarding
program?
- What are the primary benefits of targeting new customers through an
onboarding program?
- How can banks most efficiently collect the necessary information to create
customer sub-segments?
- What are industry best practices for new customer outreach programs?
Findings and Analysis
Banks should ensure that communication strategies in new customer onboarding
are targeted based on demographic and motivational information to maximize
customer lifetime value and ensure loyalty. Consumer data shows that reason
for account opening, income and age can be used to effectively determine the
optimal channel and message content for communications in an onboarding
program. For example, while over four out of ten consumers prefer email when
opening a new account, only 30% of seniors do; therefore, implementing a
one-size-fits-all strategy can limit overall customer satisfaction, making
financial institutions vulnerable to attrition and consumers resistant to new
product offers. When employed, a targeted, customer-specific onboarding
communication strategy sets a precedent for long-term customer satisfaction.
Banks have found that this results in improved profitability, response rate
and retention.
Audience:
Financial institutions: Marketing, customer experience, multi-channel
optimization departments; Technology vendors: Online banking, call cen-ter and
other customer-interaction system providers; CRM vendors
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