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Harbourn On Bancope has been on a multi-year journey to retain and deepen customer relationships using data analytics to create better marketing campaigns.
Dave Trider, chief marketing officer of the Brockton, Massachusetts, bank, was tasked with developing those skills several years ago.
“We need the CEO to understand that it’s a blind spot and step into the game,” Trider said.
HarborOne, which was worth $4.7 billion Credit Union In the year By 2013, he had several goals: to ensure that customers use five key services after onboarding, to successfully sell products; And to retain high-value customers who may be on the verge of leaving. To Baker Hill, a company that helps with loan origination, risk management and analytics, it has turned to consolidating and analyzing customer data, understanding how different customer segments are performing, and fine-tuning its messaging to achieve these goals.
The onboarding goal is based on the bank’s finding that “the first 90 to 120 days of a new customer relationship are critical, because if you get customers with the right products, their profitability will be three to four times higher over the next 10 to 15 years than someone who doesn’t get on board properly,” Trider said.
The community bank journey is where many financial institutions are.
“If your message isn’t relevant when consumers are throwing it away, they’re going to be irrelevant,” said Bill Handel, CEO and chief economist at Radon Research and Analytics.
He’s a proponent of sending fewer, but more targeted communications.
“If you’re simply sending notifications about CDs or car loans or credit cards that aren’t relevant to them, they’re quickly dismissed by the consumer,” he said.
HarborOne started with Baker Hill three years ago.
The first priority is to get new customers to the “right products” – checking account, savings account, active debit card, online or mobile banking and electronic statements.
The second part is savoring sales opportunities.
“You can send marketing communications out into the world and try to sell to customers to test savings, but unless you have the analytics behind it to figure out what the next best product is for a customer based on what the data tells you,” he said.
To improve on these two tasks, Baker Hill can integrate customer data across products and channels and combine it with external data, such as data from credit bureaus, to identify whether HarborOne customers have deposited elsewhere. Baker Hill also helped the bank build HarborOne’s segmentation framework to analyze segments and predict which customers are good prospects for specific accounts or loans. Customers are segmented by geographic location, demographics, product usage, life stage, and more.
This information was fed into marketing efforts using direct mail, digital advertising, social media advertising and email to encourage customers to sign up for the five key products within the first few months of being a customer, a gap the bank wanted to fill. with each customer. The same four channels were used to model new products.
One positive finding was that customers at the end of these targeted marketing campaigns had 3.7 times more deposits in their accounts than the control group, HarborOne reports.
The new effort, currently in pilot, is to figure out how to retain profitable customers who are about to leave.
“As we navigated the customer lifecycle from new, then onboarded properly, then moved them to the next product, our blind spot was what customers looked like,” Trider said. “If some of those are very profitable customers, you’re in trouble.”
HarborOne asked Baker Hill to build a model that would identify the most profitable customers and identify behaviors that indicate those customers may be ready to leave, such as lowering their balances, turning off direct deposit or paying off loans. If their behavior raises a flag, “We don’t reach out to them in a big brother way, saying, ‘You’re one of our best customers, we hope everything’s OK, if there’s anything we can do, please let us know,'” Trider said. We’ll get started.” The email encourages these customers to schedule an appointment at their local branch.
Handel says that this type of “segmentation” is the next level of marketing, which means targeting different generations of customers in different ways. “Division of one” means to reach the conclusion of customer transactions and behavior and to improve accessibility. For example, if recurring payments indicate that the customer holds a credit card with another financial institution, that bank may be a great opportunity to promote the credit card.
“As opposed to talking about everything that’s on your radar, you can talk to customers about the exact kinds of things that you know are meaningful to them,” Handel said.
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