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One of Canada's big 5 banks announced that they have set a target for one million new customers over the next five years with a focus on improving its digital footprint and related technology. I suspect that the bank has more details and definite parameters than just adding customers. 

First, every FI should focus on increasing the number of products each existing customer has as well as the profitability of each relationship. Plus there should be priority and secondary product goals established since you want to have the pivotal products in any relationship such as the main chequing account, residential mortgage,credit line and retirement/tax advantageous investments. Customers deal with multiple FI's and utilize an increasing number of products especially in the online world where they are in control of choices and consolidations.

Secondly, there needs to be clear customer segment/characteristic targets and with those, available, current research on related preferences and motivators especially relating to what will encourage switching to another FI plus facilitate such actions. Therefore, channel targets have to be customized to accessibility to the priority markets/prospects. Simply rewarding staff who bring in new clients could generate a lot of sign up activity which is costly and self-defeating.

Thirdly, the concentration on customers' digital dynamics is crucial in building the correct experiences and attractive options plus privacy guarantees. You must be able to do signups and verification online which should generate the majority of new business.

Every one is dealing with shared customers today and competition extends beyond the tradition FI's so strategies and tactics must consider these variables and not establish unrealistic captive customer goals. Bottom line is that adding any large number of customers encompasses many competitive influencing elements and distinct proposition advantages that demonstrate reasons to switch important business. Take the time to build the comprehensive solutions.

Pat Palmer | Thursday, October 25, 2018 | Trackbacks (0) | Permalink

 


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