Top 5 Onboarding Myths

Webinar presented in conjunction with Deluxe.

Transcript

1. Bus$ng  the  Top  5   Onboarding  Myths  
2. 2   ONBOARDING     A  series  of  targeted  mul--­‐channel   communica-ons  u$lizing  relevant  customer   data  deployed  early  and  at  key  -mes  in  the   new  rela$onship  that  effec$vely  creates   organic  growth  by  transi$oning  new   accounts  into  sa-sfied,  profitable  and  loyal   rela-onships.  
3. Why  Onboarding?   • 25%  -­‐  40%  first  year   aBri$on  (or  dormancy)  rate   among  top  100  ins$tu$ons     • $400+  nega$ve  impact   of  aBrited  customer/ member   3  
4. 5  Myths  of  Onboarding   1.  All  FIs  have  an  onboarding  program   2.  Email  is  the  best  communica$ons  channel   3.  Only  brand  new  checking  customers  or   members  should  be  onboarded   4.  The  amount  of  onboarding  communica$on   should  be  limited   5.  Cross-­‐sell  as  soon  as  possible   4  
5. Myth  #1:  Everyone  Does  Onboarding   •  Less  than  50%  of  ins$tu$ons  have  the  basics   of  a  successful  onboarding  process   –  Single  point  of  authority   –  Ask  ques$ons   –  More  than  one  ‘touch’   –  More  than  one  channel   5  
10. Myth  #2:  Email  is  King   •  While  email  is  the  workhorse  of  the  onboarding   process,  the  best  results  come  from  a   mul$channel  approach   –  Start  with  SMS  if  possible   –  Email  provides  advantage  of  speed   –  Direct  mail  is  the  most  important  channel   –  Most  advanced  firms  integrate  alterna$ve  channels   10   10  
11. Email  is  the  Onboarding  Workhorse   11   0% 1% 10% 14% 20% 20% 35% 0% 5% 10% 15% 20% 25% 30% 35% 40% No preference/nothing Another way, please specify Through the bank's website (online help center, blog, etc.) Receive a phone call Receive direct mail At the branch Receive e-mail All consumers Q16_3: If you were a new customer, how would you most prefer your bank to communicate with you? (Select one only) March 2010, n= 5,211 Base: All consumers. © 2010 Javelin Strategy & Research
17. Myth  #3:  Only  Onboard  Checking   •  All  customers/members  should  be  onboarded   –  Segmenta$on  based  on  ‘value’  nega$vely  impacts   results   –  Savings,  loans  and  credit  cards  provide  poten$al   –  Don’t  forget  small  business  customers   –  Channels  and  cadence  will  differ   17  
20. Myth  #4:  Limit  Communica-on   •  The  op$mum  number  of  ‘touches’  is  >5   –  Consumers  want  communica$on  from  their  FI   –  Use  mul$ple  channels   –  Communicate  early  and  o`en   –  Not  all  communica$ons  get  to  the  customer/ member   20  
24. Myth  #5:  The  Power  of  Selling   •  Engagement  precedes  selling   –  Consumers  want  communica$on  from  their  FI   –  Use  mul$ple  channels   –  Communicate  early  and  o`en   –  Not  all  communica$ons  get  to  the  customer/ member   24  
27. Bank  of  America  Onboarding   27  
28. Primary  Take-­‐Aways   1.  Assign  a  Process  Leader   2.  Communicate  Early  and  O`en   3.  Leverage  Mul$ple  Channels   4.  Personalize  Communica$on   5.  Test  and  Learn   6.  Start  Small   28  
29. 29   OWNER, PUBLISHER Digital Banking Report JIM MAROUS jmarous@thefinancialbrand.com 216-218-4257 @jimmarous hYp://bit.ly/onboardingDBR