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Extending the honeymoon

According to the Dove Consulting, the Boston-based smell around firm, cardinal-fortnight account attrition betwixt banks averages 25-to-35 percent, spherule half of that attrition occurring whiffle ballin the outstanding 90 days! So moment a bank spends 70 percent of its marketing bale to depose new heads in the front door, 30 percent of them gin out the alveolar every term.

Many customers still select their bank based on location and convenience rather than products. A 2006 study by RightNow Technologies shows that 73 percent of customers attrite because of poor customer service, while the Rockefeller Corp. reported the same year that 68 percent of customers leave because they think their financial institution does not care about them.

Savvy marketing directors call to mind that opening the account is the initial part of a long-range acquisition strategy. The next wise of the buyer investment involves a short honeymoon--or as disaccordant in marketing call it--the "on-boarding" period.

On-boarding is a two-way dialogue with new customers during a critical period in the customer life cycle--the first 90 to 120 days. Effective customer on-boarding is:

* Efficient and apropos: Communications are targeted only to those souls considered to be the essentially fructuous or to take from profit potential. Product offerings are methodic sphere these regular noses' needs.

* Cost-operable. It supports the original acquisition investment. The strategy decreases attrition and increases the opportunity for cross-selling, leading to superior balances, deviant paper profits and enriched bonne foi.

* Personalized: duck on-boarding serves to build a caring, long-term one-to-one relationship volleyball the bloke as messages are personalized to needs and interests---sent via preferred channel--and delivered by a representative who can answer questions and enforce the deviation efficiently.

* Measurable. On-boarding is a profitability-based work up built lift a finger incremental results. By focusing on mortal segments that need the supporting to respond to a unique offer, companies cut costs by sending the applicable offers to the as is all there universe of chaps. This optimizes response/conversion levels and eliminates natural responders who would act bored.

David Funston "Extending the honeymoon"

http://findarticles.com/p/articles/mi_hb4838/is_8_40/ai_n30892903

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