Tag: digital engagement

By powering your deposit growth strategy with fresh consumer insights, you can find the best customers and members to engage.

To drive competitive growth and customer retention, banks must find innovative ways to elevate the banking customer experience.

With an abundance of loan options in today’s market, retaining customers can be challenging for banks and credit unions, especially small or regional institutions. And as more consumers look for personalization and digital tools in their banking experience, the likelihood of switching to institutions that can meet these demands is increasing.1 According to a recent Experian survey, 78% of consumers have conducted personal banking activities online in the last three months. However, 58% of consumers don’t feel that businesses completely meet their expectations for a digital online experience. To remain competitive in today's market, organizations must enhance their prescreen efforts by accelerating their digital transformation. Prescreen in today's economic environment While establishing a strong digital strategy is crucial to meeting the demands of today’s consumers, economic conditions are continuing to change, causing many financial institutions to either tighten their marketing budgets or hold off on their prescreen efforts completely. Fortunately, lenders can still drive growth during a changing economy without having to make huge cuts to their marketing budgets. How? The answer lies in digital prescreen. Case study: Uncover hidden growth opportunities Wanting to grow their business and existing relationships, Clear Mountain Bank looked for a solution that could help them engage customers with money-saving product offers while delivering a best-in-class digital banking experience. Leveraging Digital Prescreen with Micronotes, the bank was able to identify and present dollarized savings to customers who held higher-priced loans with other lenders. What’s more, the bank extended these offers through personalized conversations within their online and mobile banking platforms, resulting in improved digital engagement and increased customer satisfaction. By delivering competitive prescreen offers digitally, Clear Mountain Bank generated more than $1 million in incremental loans and provided customers with an average of $1,615 in cost savings within the first two months of deployment. “Digital Prescreen with Micronotes supplied the infrastructure to create higher-quality, personalized offers, as well as the delivery and reporting. They made prescreen marketing a reality for us.” – Robert Flockvich, Director of Community Outreach and Retail Lending at Clear Mountain Bank To learn more about how you can grow your portfolio and customer relationships, read the full case study or visit us. Download the case study Visit us 1The Keys to Solving Banking’s Customer Loyalty & Retention Problems, The Financial Brand, 2022.

Financial institutions have gone through a whirlwind in the last few years, with the pandemic forcing many to undergo digital transformations. More recently, rising interest rates and economic uncertainty are leading to a pullback, highlighting the need for lenders to level up their marketing strategies to win new customers. To get started, here are a few key trends to look out for in the new year and fresh marketing ideas for lenders. Challenges and consumers expectations in 2023 It might be cliche to mention the impact that the pandemic had on digital transformations — but that doesn't make it any less true. Consumers now expect a straightforward online experience. And while they may be willing to endure a slightly more manual process for certain purchases in their life, that's not always necessary. Lenders are investing in front-end platforms and behind-the-scenes technology to offer borrowers faster and more intuitive services. For example, A McKinsey report from December 2021 highlighted the growth in nonbank mortgage lenders. It suggested nonbank lenders could hold onto and may continue taking market share as these tech-focused lenders create convenient, fast and transparent processes for borrowers.2 Marketers can take these new expectations to heart when discussing their products and services. To the extent you have one in place, highlight the digital experience that you can offer borrowers throughout the application, verifications, closing and loan servicing. You can also try to show rather than tell with interactive online content and videos. Build a data-driven mortgage lending marketing strategy The McKinsey report also highlighted a trend in major bank and nonbank lenders investing in proprietary and third-party technology and data to improve the customer experience.2 Marketers can similarly turn to a data-driven credit marketing strategy to help navigate shifting lending environments. Segment prospects with multidimensional data Successful marketers can incorporate the latest technological and multidimensional data sources to find, track and reach high-value prospects. By combining traditional credit data with marketing data and Fair Credit Report Act-compliant alternative credit data* (or expanded FCRA-regulated data), you can increase the likelihood of connecting with consumers who meet your credit criteria and will likely respond. For example, Experian's mortgage-specific In the Market Models predict a consumer's propensity to open a new mortgage within a one to four-month period based on various inputs, including trended credit data and Premier Attributes. You can use these propensity models as part of your prescreen criteria, to cross-sell current customers and to help retain customers who might be considering a new lender. But propensity models are only part of the equation, especially when you're trying to extend your marketing budget with hyper-segmented campaigns. Incorporating your internal CRM data and non-FCRA data can help you further distinguish look-alike populations and help you customize your messaging. LEARN MORE: Use this checklist to find and fix gaps in your prospecting strategy Maintain a single view of your borrowers An identity management platform can give you a single view of a consumer as they move through the customer journey. The persistent identity can also help you consistently reach consumers in a post-cookie world and contact them using their preferred channel. You can add to the persistent identity as you learn more about your prospects. However, you need to maintain data accuracy and integrity if you want to get a good ROI. Use triggers to guide your outreach You can also use data-backed credit triggers to implement your marketing plan. Experian's Prospect Triggers actively monitors a nationwide database to identify credit-active consumers who have new tradelines, inquiries or a loan nearing term. Lenders using Prospect Triggers can receive real-time or periodic updates and customize the results based on their screening strategy and criteria, such as score ranges and attributes. They can then make firm credit offers to the prospects who are most likely to respond, which can improve cross-selling opportunities along with originations. Benefit from our expertise Forward-thinking lenders should power their marketing strategies with a data-backed approach to incorporate the latest information from internal and external sources and reach the right customer at the right time and place. From list building to identity management and verification, you can turn to Experian to access the latest data and analytics tools. Learn about Experian credit prescreen and marketing solutions. Explore our credit prescreen solutions Learn about our marketing solutions 1Mortgage Bankers Association (October 2022). Mortgage Applications Decrease in Latest MBA Weekly Survey 2McKinsey & Company (2021). Five trends reshaping the US home mortgage industry

When extending firm offers of credit, lenders have relied on direct mail to reach their intended audiences. But what if there are more ways to deliver a credit offer?

With consumers having more banking options than ever before, loyalty has become the most valuable currency for financial institutions (FI). As fintechs and big tech companies continue to roll out innovative banking and payment options, traditional FIs must rethink their strategies to drive new business, retain existing customers and remain competitive. According to a recent Mintel report, rewards, transparency and customer service are the top three constants when it comes to building loyalty. Here’s how financial institutions can deliver on these fronts to create and maintain lasting customer relationships: Rewards programs and incentives Rewards have long been a key customer retention strategy, with 39% of consumers stating they would remain loyal to their financial service providers if they offered incentives and rewards. While traditional rewards programs that offer points or cash back on everyday purchases remain popular, many companies are expanding beyond the conventional rewards structure to attract new customers and stand out from the competition. For example, one California-based startup enables its cardholders to earn points at every winery, wine club or wine shop, while a health and wellness company rewards its cardholders with extra cash back when they meet their weekly fitness goals. To build and maintain customer loyalty, FIs can follow suit by incentivizing positive financial behavior, such as offering points to customers when their credit score increases or when they reach their monthly savings goal. Being rewarded for improving their financial health can encourage customers to continue making positive and responsible financial decisions. When customers see how much their financial institution invests in their financial well-being, they are more likely to remain loyal to the brand. Nurturing existing customers through rewards programs is also more cost-effective than acquiring new ones. Rewards program members spend 5-20% more than non-members on average, which not only covers operating costs but leads to increased sales and revenue. Transparency over fees Beyond rewards programs and incentives, many FIs have created innovative tools to help customers avoid overdraft fees, such as real-time alerts for low balances. To take it a step further, some have eliminated these fees altogether. While overdraft fees can be an easy source of revenue for financial institutions, they are a pain point for customers, especially for those who are financially vulnerable. Rather than continuing to be saddled with hefty penalties, customers are likely to switch to providers that are more upfront about their fees or have eliminated them outright. To avoid losing current and prospective customers to new competition, FIs need to be more transparent and work toward establishing fairer practices. Quick, friendly, and accessible customer service With today’s consumers having increased expectations for easy, convenient and accessible customer service, many FIs have refined their strategies by becoming digital-first. When customers have a question or concern, they can engage with financial institutions at any time through digital channels, including chat, email or social media. Being accessible at any hour of the day to assist their customers provides FIs with a great opportunity to build trust, loyalty and a positive reputation. By providing exceptional customer service, compelling rewards and being transparent, financial institutions have the power to create long-lasting customer relationships. Learn more about what you can do to retain your best customers or check out how to build lifetime loyalty with Gen Z. Learn more Build loyalty with Gen Z

Experian's global insights report explores the shift in the volume of online activity and experiences over the past several months resulting from COVID-19.