If you are like most banks and credit unions, you see marginal net new customer or member growth each month. Unfortunately, we spend a lot of time and treasure increasing the number of new customers, only to see the same (or nearly identical) number of customers leave month over month. According to our national peer database, net new household growth is 11.9%, while the national attrition average is 12.2%. Our acquisition marketing investment leaves us with net neutrality regarding new household growth.

SINGLE PRODUCT EQUALS ATTRITION

There are several reasons one closes their account. One reason is a single-product relationship. 90% of all closed households (regardless of tenure) have just one or two products. Stated differently, nine out of 10 households are likely to leave if they have minimal engagement. Looking deeper into tenure, 97% percent of households with less than 12 months of tenure will go if they have just one or two products. In addition, 65% of those households are in Generation Y and Z. WE MUST DO A BETTER JOB OF REDUCING ATTRITION AND INCREASING ENGAGEMENT among our up-and-coming customers and members.

HIGHER ENGAGEMENT INCREASES STICKINESS

It is accepted that the more products and services a household has, the lower the attrition. But what may surprise you is HOW TRUE that is. Regardless of tenure, those households with three to four products are 9% more likely to leave. Those households with five or more are just 1% likely to leave. When accounting for those new households in the last 12 months, those with three or more products are just 3% likely to leave – WOW! The addition of active services only adds to this stickiness.

DIGITAL ACTIVATION IS A SOLUTION

You already know us as a market leader in financial services marketing automation. Each year, we execute millions of marketing automations across multiple marketing channels, including direct mail, email, SMS, web banners, and CRM. But what has been a challenge (until now) is service activation. For very sticky products like direct deposit, mobile and online banking, and bill pay, the best we could do is send the customer/member a web address and HOPE she would complete the process. It was clunky, and conversion was challenging to track.

Today, we have a solution. We have solved the service adoption problem. We have made it easy to deploy specific marketing automations designed to quickly move a new customer/member into direct deposit, mobile and online banking, and bill pay. Simply put, this process will increase ACTIVE services per household so you can experience net new household growth each month.

BONUS – WHAT ABOUT MERCHANT SUBSCRIPTIONS?

We need to help the new customer/member migrate his recurring merchant payments from vendors such as HULU, Netflix, Spotify, Amazon, Apple, and UBER. We have solved this challenge as well. As part of our Digital Activation platform, we will help your new customers/members move these payments to their new checking account. It’s easy.

Take the next step today. Schedule a conversation and discover how we make service activation easy and profitable for your bank or credit union.

P.S. Like the national peer data used in this article, and want to know YOUR attrition and adoption statistics? Schedule a demonstration of our data-based storytelling tool, the KEYS.