Whether it still costs 5x more to create a new customer than to retain an existing one, you want to leave as little behind as possible. It’s time to clean up.
It’s been a long-standing maxim that the cost of acquiring new customers runs five times more than the cost to retain an old one. As digital marketing and consumer patterns change, perhaps this advice needs to come with a grain of salt. Whether existing or new, you want customers with a high “Customer Lifetime Value” (CLV). How much does it cost to onboard a new customer? How much does it cost to open a new product or service for a new or existing member? How much are you spending on marketing? With this info you can generate an ROI at various levels of specificity.
New customers have the biggest potential in wallet share to provide your institution as they are starting at zero. However, they also come with the highest upfront cost. An existing customer may or may not have a big bump available in wallet share to bring you. The only guarantee is that some of those initial costs aren’t incurred.
In addition to attracting new customers, ensuring you have a robust retention program is the goal of our IQLeads module. This module helps convert your customer data into revenue. Based on your strategic retention goals, we can use customer data to identify opportunities to call the right customers at the right time. Use IQLeads to find these opportunities. Boost your retention and sales without incurring those new customer onboarding costs.
Find customers with CDs below a certain rate, above a certain balance, in advance of maturity.
Find customers with transaction patterns that indicate there is more wallet share available.
Find commercial deposit accounts that are good candidates for your stickier commercial services.
Your existing customers or members are being sold to constantly - whether by your competitors in the banking, credit union, or fintech space. You worked hard to acquire those customers and now you need to work hard to keep them. We know that at some banks or credit unions, “sales” has become a bad word. Unfortunately, this results in a situation where “retention” is a looming emergency. We know that it is possible to have a pro-sales environment that is both pro-customer and pro-employee without the burden of quotas or manipulative tactics. If you aren’t sharing your additional products or services that are available, your customers may not even realize you are an option for their financial need. If you don’t tell them, they won’t know.
Any good outbound sales script will begin with a strong connecting statement. You may be calling about a potential CD rate opportunity, but first and foremost, you are calling to make them feel valued as an existing customer and to find out if they have any current needs that you can assist with. It’s not as scary as it sounds! It’s less scary than losing another customer with no warning.
IQLeads will give your team that high-quality prospect list, from your existing customer base! This is the highest quality prospect list available especially once you narrow in on customers that meet your target demographics. They tend to show real interest in your offer because it aligns with their needs.
Instead of looking like a pesky salesperson, you can appear like a reliable consultant ready to offer solutions to their changing life events. Use IQLeads to find these opportunities. Boost your retention and sales without incurring those new customer onboarding expenses. It’s as easy as a phone call or targeted email to stay top of mind for your customer base.
Request your Demo
The best way to experience the Quest Analytics solution is to see it in action with a live demonstration. Our community banking CRM is right-sized for your needs.
During the demo, we can focus on the areas that are most important to your institution as well as discuss how we have helped other banks and credit unions just like yours to grow, retain, and enhance customer relationships.
Request your demo now.