June 11, 2013
Customers are taking greater control of their banking relationships. First, they are more informed and are switching banks because they are turning to the web to conduct competitive research before they make purchases, including banking products. Second, new and unexpected competitors such as PayPal and BlueBird (joint venture between Walmart and American Express) are entering the market with new hybrid online banking models that create a more self-service environment. Third, most banks are not moving fast enough to create a digital engagement model that prospects and customers can use as a decision tool that is consistent across all channels. These dynamics threaten to take customers from traditional banks.
One way to ensure customer loyalty is to gain greater wallet share, fast. Satisfied and informed customers open more accounts, more often. Ignite has amassed more than 3,000,000 data points on customer purchasing behavior over the last 10 years. This is what we have learned.
- 84% of prospects are eligible for the bank’s most profitable products
- 8 is the average number of products out of more than 100 that banks sell
- Most customers are eligible for 7-8 products but are usually presented with one or two during the consultative sales at the branch.
Increasing share of wallet can be done by adding new products or can be done by cross-selling products. For example, a bank might recommend to an existing customer something else they offer such as insurance or investment management. By cross-selling within the bank they can increase their share of the customer’s wallet.
So how do you do this quickly in the new world of self service? You automate the process. You create a rich and informative online experience that personalizes a customer’s banking experience. Ignite’s Recommendation Guide conducts a needs assessment by asking a series of questions to understand the prospect’s current situation. The guide uses the collected information, banking thresholds, and Eligibility Analytics to evaluate the responses and returns recommended product bundles to meet the specific needs of the customer in real-time.
Many of our customers have seen 3X increase in cross-sell, a 10X increase in upsell, and all have experienced a strong increase in pre-qualified leads after implementing this value added self-service experience. It makes it easy and cost effective for banks to upsell and cross-sell products across all channels.
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