How Well Do Your Customers Know the Benefits of Your Product Types?

Posted by Pat Rushenberg | April 14, 2021

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the content herein. The opinions expressed in this article are the opinions of the individual author and may not reflect the opinions of MeridianLink, Inc.

A customer has just opened a new account and they need to understand all the benefits of their checking and more importantly, credit card benefits.

 

Knowledge Is Power

Gamers, believe it or not, provide a great example. Right now, they’re busy choosing between the two newest consoles on the market, Sony’s PlayStation 5 and Microsoft’s Xbox Series X. If you ask them which console they favor, you’ll likely be rewarded with an exhaustive list of features and software driving their choice. For a group often accused of spending too much time in front of a screen, they do their homework when it comes to their buying decisions and they know every single benefit of their purchase.

It’s an example which pays off in other areas – even if you’ve never picked up a controller in your life. Take banking: When a consumer or member signs up with a new bank or credit union, they’re invariably presented with a choice of different checking accounts, each one designed to meet their particular needs, including reasonable interest rates, perks like a free box of checks (if you’re still using paper) and a new shiny debit card.

Nice, but there’s often more and do they even know what the ‘more’ is?

A lot of debit (and credit) cards come with reward programs. Forget haptic controllers and Twitch streams, these programs have things professionals often crave, like travel insurance, cellphone replacement and rental car damage insurance. Thing is, though, too many new card users aren’t even aware of these programs. Is that what you want for your new account? A recent J.D. Power study showed 36% of credit card customers don't fully understand the rewards available to them.

Which is a shame, because having customers who really know their cards and have just opened a new account, is a major benefit for financial institutions as well.

Knowing New Account Benefits Means Everybody Wins

The same study discovered those customers who fully understood their rewards program spent an average of $307.00 more per month. Higher balances generate more interest and fee income, a great advantage for financial institutions. Banks, credit unions and other financial institutions work very hard to achieve top of wallet status for their customers; making sure the customers understand the benefits that come with the card can keep them there.

It's a win-win situation.

“The key for issuers in this competitive environment is to ensure they are offering the types of benefits that resonate with customers,” says Jim Miller, Senior Director of the Banking Practice at J.D. Power. He’s absolutely right – with a wide variety of financial institutions available to choose from, a savvy institution needs to make sure they’re offering what customers want. And the best way to make that clear is to select cards that have the benefits and incentives customers are interested in.

So, what’s the lesson for bankers, credit unions and lenders? How can they make sure customers are aware of the myriad of benefits on newly opened accounts?

Communication Drives Knowledge & Satisfies Customers

Consider sending automated emails each time a new account is opened. Customers are often rushed when they’re opening a new account and skip through the small print and details, which means anything that’s been read during that time doesn’t stick. An automated email – or series of emails – can rehash the benefits on the account that was chosen.

The best part? According to marketing tech firm Hubspot, emails increase client retention, influence purchasing decisions and contribute to revenue. Multiple emails allow for more opportunities in the crucial 90 days after approval: Even if the first email is missed, the customer will likely open one in the series and remember the incentives and offers linked to their card. 

What about online account messages? Likely this also is a great way to ensure a new customer upon using their online banking account can receive a welcome message with links to credit card benefits.

Just like the first 90 days of a new hire are critical to the new hire success, the first 90 days of a new customer’s relationship is critical to long-term relationship success. Just listen to marketing gurus CXL – they say post-purchase emails are critical for satisfying new customers.

Customers knowing the inner workings of new cards sitting in their wallet benefits you – the financial institution. And, more importantly, it benefits your customer.

Something That Benefits Both Parties Is Just Good Business

A feature of MeridianLink’s account opening software and dynamic workflow helps your consumers become aware of the features and benefits included in their new checking accounts, savings accounts, or credit cards. Want to learn more? Contact a MeridianLink representative today.

 

Learn More About Account Opening Software

Topics: Account Opening System, Deposit account opening, digital banking

Written by Pat Rushenberg

Dir., Strategic Accounts at MeridianLink

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