Targeted ads help FIs reward consumers
2011-03-07
Major financial institutions are adopting measures that both increase customer retention rates and improve revenues, and one way they are doing this is by partnering with marketers and companies.

Now, when some consumers log in to their online bank accounts, they will not only be greeted by their transaction history and financial records, but also by messages advertising tailored deals, such as 15 percent off their next purchase with a shoe store.

These deals are offered based upon an individual's transaction history. Say a bank customer has a record of purchasing a breakfast sandwich, the site may offer them a coupon off their next meal at a local fast food chain.

"Your card issuer probably knows more about you than any other business or company you do business with," Paul Stephens of the Privacy Rights Clearinghouse told MSNBC. "The so-called transcript of your purchases is an absolutely amazingly complete dossier on you as a person."

This new technique could help FIs improve customer loyalty scores, which were hurt by the financial crisis. In fact, a recent survey from JD Power and Associates reported that 8.7 percent of consumers in 2011 indicated they had switched their primary banking institution, up from 7.7 percent a year ago.

Recent Marketing Strategy and Planning News

Make Every Staff Member a Marketing Ambassador
2011-06-16
No matter what the business or how diversified its products and services, all employees need to act collectively toward the common goal of meeting customer needs and ultimately boosting profitability.
Customers would desert online banking if it weren't free
2011-03-02
Major financial institutions enacted a customer loyalty coup when they hit upon online banking.
Community banks lag behind in electronic communications
2011-02-23
Mobile and online banking are increasingly becoming commonplace, and even expected, offerings of every major financial institution.