It’s easy to chase rates, but the recipe for deposit growth success lies in combining a deep understanding of your data with continuous marketing execution.
The recipe for successful deposit growth is often complex – requiring a strategic combination of ingredients. A winning strategy involves not only data-driven decision making, but also compelling marketing execution. Yet, these two elements often exist in isolation, leaving banks and credit unions with a disjointed strategy and an unclear path to growth.
Finding the perfect partner is a classic Goldilocks scenario – not too ‘hot’ (only focused on execution), not too ‘cold’ (providing data-driven insights but no action), but just right.
The ideal approach that combines the best of both worlds: a single partner that combines the power of data with a deep industry expertise and the precision of always-on omnichannel marketing execution.
With decades of experience in the financial industry, we understand the unique challenges and opportunities faced by banks and credit unions. We also recognize that to grow and thrive in today’s competitive landscape, institutions need a comprehensive approach that integrates data-driven insights with targeted marketing execution.
Our data-driven approach starts with powerful analytics that help identify growth opportunities for the institution. From there, we create omnichannel marketing execution, designed to reach your customers through their preferred channels, whether it’s email, direct mail, social media, or online advertising.
Combining these powerful analytics with omnichannel marketing execution generates targeted marketing campaigns aimed at increased cross-selling, retention rates, and customer acquisition that get results.
A solid deposit strategy starts with a deep understanding of your bank or credit union’s data and knowing where you stand among your peers. Once you have a clear understanding of your deposit portfolio, it’s important to identify any gaps or opportunities that may exist. This could include targeting specific customer segments for deposit growth, monitoring interest rates in the market, or evaluating current product offerings.
Having a clear picture of your deposits benchmarked against datapoints from hundreds of other financial institutions is crucial groundwork for mapping out a successful growth strategy. This is important to know because it can affect future decision making and potential growth opportunities. Ask yourself the following questions:
Remember, while experts can offer insights, having a knowledgeable partner by your side is key. They won’t just throw numbers at you; they’ll guide you through the journey from where you are to where you want to be.
Customers might decide to move their deposits to other financial institutions offering better rates. Adjusting current deposit rates to match competitors may not ensure long-term customer loyalty.
If a customer is enticed by slightly higher rates, another institution will match it. Sustainable growth lies in building strong, lasting customer connections rather than solely focusing on rates.
Many financial institutions tend to focus on offering incentives solely for new deposits, sometimes going as far as offering 100 additional basis points to attract fresh funds. However, a simple adjustment of just 25 extra basis points for existing customers could yield the same deposit growth outcomes while managing the cost of funds effectively.
This highlights the impact of leveraging data to shape decisions regarding your deposit growth strategy. When decisions are data-driven, bank leaders can steer clear of risking fund costs to entice deposits.
Many banks, especially community banks, might lack the in-house expertise or bandwidth to thoroughly analyze deposit data and utilize that analysis for their marketing campaigns. They often turn to consulting firms or marketing agencies for help. However, not every agency can interpret the data effectively to boost revenue and relationships through marketing campaigns while meeting the industry’s compliance standards.
Some consultants excel in deposit analysis but fall short on marketing, while some marketing firms can craft campaigns to attract new deposits, but at what cost? Few firms or consultants merge analytical expertise with banking knowledge and marketing experience to create impactful campaigns that elevate a financial institution’s performance.
When it comes to deposit growth strategies, there are some potential booby traps on the path to success. Learn how to avoid common pitfalls for profitable deposit growth.
Our deposit growth marketing campaigns are designed to drive results that matter – boosting your deposits and growing your customer base. We leverage your data and implement always-on marketing campaigns to ensure your financial institution stands out to the right people with the right message at the right time. By pairing accurate, benchmarked data with omnichannel marketing execution, we empower your institution to attract and retain more deposits, ultimately driving your growth and success.
By leveraging Facebook, Instagram, display ads, email, and direct mail, this campaign ensured a seamless experience for the audience while real-time updates (thanks to the agility of digital media) aligned with fluctuating rates. This flexibility allowed the institution to keep the rates 50-100 bps below the Federal Funds rate.
The campaign’s outstanding results demonstrated its effectiveness in engaging the target audience and attracting new deposit balances:
It is essential for financial institutions to continuously evolve and take advantage of innovative strategies to stay competitive in the rapidly changing market. Any financial institution can chase rates. The financial institution with a partner that can interpret and act on data while executing omnichannel campaigns will stay ahead of the curve and grow balances profitably even during fluctuating economic conditions.
Download the client success story to learn how Baker Hill Powered by Infusion‘s innovative omnichannel campaign attracted 460 new CD investors, totaling over $34 million in balances, with a remarkable 3.2% response rate and significant increase in household balances.
In the highly competitive financial services landscape, attracting and retaining customers is crucial for banks and credit unions. Taking a strategic omnichannel marketing approach is the key to successfully identifying and attracting customers. With our expertise and innovative, data-driven marketing solutions, we offer tailored strategies that focus on successful outcomes for your financial institution.
Their goal? To increase households and deposit balances. Here are the results from partnering with Baker Hill Powered by Infusion over the span of two years:
This collaboration demonstrates the effectiveness of well-planned customer acquisition campaigns. Our goal is to ensure your financial institution stands out in a crowded market, while making the most of your marketing budget. With our omnichannel approach, we target potential customers through various channels such as social media, email marketing, and personalized direct mail campaigns. And our pay-for-performance model means that you only pay when we get results.
In today’s increasingly digital world, the customer onboarding process is a critical first step in establishing a strong relationship between your bank or credit union and your new customers. It’s not merely about opening an account; it’s about facilitating a smooth transition from the sales process to delivering what was sold to them. Successful onboarding is about making customers feel valued and supported, and with our data-driven approach we make the onboarding process seamless and enjoyable, setting the stage for a fruitful banking relationship right from the get-go.
The objective? To integrate new customers smoothly, ensure a positive initial experience, and build the foundation for long-term relationships.
In just two and a half years, over 7,000 new households successfully completed the onboarding program, producing some phenomenal results:
These results indicate that a successful onboarding program isn’t just about engaging new customers; it also drives substantial financial benefits for the financial institution. By providing a positive onboarding experience and effectively cross-selling additional products and services, banks and credit unions are able to increase revenue and profitability while also building long-term customer relationships.
Baker Hill Powered by Infusion drove significant growth through a successful customer onboarding program that resulted in increased deposit balances, loan balances, and new accounts. Download the client success story to learn more!
Interest rates are rising, and so is the competition for deposits. And the pressure is coming from all angles: from traditional banks to digital neobanks and fintechs. To protect and grow your deposit base, it’s time to be proactive and economical with your approach.
The key to success? Data. Financial institutions leveraging data to inform marketing strategies can effectively target their efforts, identify high-potential customer segments, and expand wallet share. Data-driven marketing helps you reach the right customers with the right offers, aligned with your growth ambitions.
Stop gambling with your growth strategy. Harness the power of data analytics to make informed decisions, generate deposits, and build profitable customer relationships. With a focus on data analytics and targeted marketing, your financial institution can thrive in any economic climate.
Explore powerful techniques to increase and maintain deposits in the competitive banking landscape. Understand how analytics can optimize marketing, control deposit rates, and strengthen customer connections.
Baker Hill is in the business of evolving loan origination by combining expertise in technology with expertise in banking. Built on decades of walking alongside banks and credit unions as they provide vital resources to their communities, Baker Hill NextGen® is a configurable, single platform SaaS solution for commercial, small business, consumer loan origination, and risk management that grows along with you as your business needs change.
Infusion’s mission is to help community banks and credit unions thrive by using data analytics and omni-channel/digital marketing programs to profitably grow relationships, assets, and deposits. The Infusion process uses a unique industry normative database with over 10 billion data points to help you uncover new opportunities for growth and then realize those opportunities through pay for performance campaigns where we literally put our money where our analytics are.
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