Customer On-boarding in Banking

Some Quick facts on Customer onboarding in Banks

A successful on boarding program is not easy

On boarding requires a strategy that shows the customer;-you know them well-that you will look out for their individual needs -you will ultimately reward them for their business

Customer on boarding is an ongoing process, communications gateway /additional communication that will;-become a ‘Long-term Relationship’-moving the customer from the ‘Engagement Stage to the Relationship Stage-Finally leading the customer to ‘Loyalty Stage of the consumer life cycle’

As powerful as a good on boarding strategy can be, it can also destroy “trust” if not done correctly .If trust is broken, this usually leads to attrition quickly

25-40%-First year rate of

attrition among top 100

institution

Step-1Assign a specific employee for Customer On boarding. His

activities include;A single point-of-contact for on boarding processManaging budgets, goals, measurement of program success, work across product, channel & marketing Departments

Without a person dedicated to this, on boarding process will lack focus/may never get initiated

Step-2Include all Account Holders(Old & New)

On boarding is an ongoing process that should include both new & old account holders. Also On boarding

process should be done for all types of accounts like Deposit & Advances

Step-3Target the Right Account Holders

A strong targeting strategy helps to acquire households willing to build a broader relationship than just one account. The more

targeted the acquisition strategy, the greater the potential for on boarding success

Another way to improve your acquisition results is to continuously engage with customer like “Direct Mails/Mass

Media” that can optimize your overall investment

Step-4

Collect Data/Insights from day OneThe ability to personalize communications & provide targeted solutions is based on the;DemographicBehavioralSocial insightsThe collection of insight doesn’t stop at the new accounts, but should continue during the entire on boarding process using surveys that should build a customer profile.

Step-4 Cont…

Day 2

oWelcome LetteroHow did you first learn about us?oAccount Opening process satisfaction

Day 60

Customer Satisfaction surveyRelevant Offers

Between 30-90 days there should be cross selling like

Insurance, RD’s,MF’s

Day 180

• Internet/Mobile/ Utility Payment

satisfaction survey

The Challenge is to balance the desire for collecting more insights either in person or through digital channels with the need to simplify the account opening process

Step-5Communicate with the New Account Holders early

The sooner you reconnect with the new account holders ,the more successful you will be in building dialogue & engagement

“A simple SMS stating Thank You is a great way to start an on boarding process”

Communicate with the account holders Regularly

One of the biggest misconceptions by financial institutions is that new account holders don’t want to get a lot of messages after opening a new account. But according to

research studies-satisfaction & cross-selling success will both improve as the number of contacts are increased up to 4 times & is till effective if the customer is

communicated with as many as 7 times during the first 90 days.

Personalize Communication

Step-6

Step-7

Show the consumer that you know them & understand their needs. The goal is to mine the data on the customer to Generate marketing messages that are customer specificIt is important to build a communication channels strategy for each customer ‘based on the channels they use & respond to best’

Step-8

Step-9

Start with a Simple “Thank You”

This can be done by SMS or E-Mail immediately after the customer completes account opening. Some organizations have developed local

‘Surprise/Delight’ offers from local merchants to provide as a Thank You

Build engagement before selling

Nobody likes sales messages before you have earned trust. Start your on boarding process with various solutions like

Internet Banking, Mobile Banking, Bill payment option etc. The positive impact of these services alone can increase

relationship by more that $ 400

Step-10

Step-11

Don’t forget your ‘Brand’New customers are not necessarily

familiar with your brand. Let them know what makes your organization special.

Make sure that all on boarding communications reinforces your brand & provides the customers with reasons to

refer your Bank to their friends

Customers respond to offers that relate to accounts they hold in your Bank.

Ex: You can have a reward program, to leverage as a part of customer

engagement

Provide Personalized Offers

Step-12

Step-13

Start your Communications with Mail/E-Mail

For on boarding traditional Direct Mail/E-Mail is a great foundation for future communication. There is often 1.5 to 3*

lift in results.Ex:38% of US Households surveyed preferred receiving

postal mail compared to 17% desiring information over digital channels

Today’s Digital Customer is more likely to open your E-Mail on their phone than their desk. These customers are also open to receiving SMS messages & targeted offers in their Mobile Bank App. Leveraging multiple channels like e-mail, phone,

SMS text, online, mobile banking, videos, ATM etc allows you to appeal to customers channel preferences while delivering a highly personalized message that

will positively impact results

Integrate all Possible Channels

Step-14

Step-15

Leverage your Local presence

‘Branch phone call follow-up’ can improve on boarding results significantly & is a great use of ‘Branch Down-Time’

The use of partnering with local merchants for non-financial offers also is a great way to leverage bank’s local presence

Build Custom ‘Jump Pages’

Several Banks have unique jump pages that are specifically designed for new customers providing step-by-step instructions on how to take the best advantage of services. Many of these jump pages have links like “Go With” service pages providing easy applications and additional

education on the service

•Use your VISA Debit Card for ATM/POS transactions•Bank will send you an e-statement every month endto your registered mail ID Keep your ATM PIN Confidential•Do not respond to any call/mails stating to provide your account details because bank does not call/mail any customer asking for account details

Catholic Syrian Bank

Know your Savings Bank AccountKnow your Account

Manage Your Account

Pay Bills

Mobile Recharge

Electricity BillPhone BillsRecharge DTHWater BillInsurance PremiumLoan PaymentsCredit Cards Bill Payment

Know your Account

Manage Your Account

Pay Bills

Mobile Recharge

Pay Bills will enable you to pay;

Step-16 Integrate Video as Engagement Tool

Short form of video that is built for ‘mobile devices viewing’ is a highly effective selling tool especially when it includes “links to open a new account/service”. These

short-form videos can be focused on ‘providing instruction around the use of digital services’

Step-17 Maximize Digital Retargeting

This can be done by ;-e-mail retargeting-Facebook retargeting-Mobile -CRM retargetingThe entire process should be automated through Bank’s IT Systems

Many retargeting

programs can generate lift in results of 2-3X use of a single

communication channels

Step-18 Selling on ‘Mobile’

The use of Alerts & Sales Messages within mobile banking re-inforces other channels. Thinking outside the box, some banks use behavioral insights to offer engagement &

‘next most likely products’Ex: Bank of America has gone as far as prompting customers with merchant-funded

offers

Welcome to XYZ Bank Mobile Banking App

Username:

M-Pin:

Login

Click here to Get helpful Insurance Tips

Watch Now

Contact Us

Step-19 Measure Results

While most banks miss this or avoid this, i.e “Measurement of Results”. However measurement involves the following steps;

How did a particular sale happen?Who should get the credit for it?How much credit should be attributed to each consumer interaction across channels/on what basis?How should the investment be apportioned across channels?

Step-20

Continue to test ‘frequency, targeting, offers & other components of your multichannel on boarding

process’. The key is to test messages, timing, offers to optimize your specific program from both

customer & Bank’s perspective

Test & Learn

Step-21o One of the biggest impediments to on boarding success is not getting started. Instead

of trying to build the ‘perfect’ on boarding process, “start small & build layers on a strong foundation”

o No financial institution has stopped an on boarding program once they have initiated the process because Return-On-Invest(RIO) even in the worst case scenario is always

positive & this is proved among various Bankso If you don’t have a multichannel on boarding process in place already, start with the

basics & move forward incrementally.

The learning's along with the way will serve you well as you build a more robust process

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd