Banks and financial institutions are actively implementing incentive marketing because of the increasing competition among major players in the banking industry. Banks do this to keep existing clients and at the same time encourage them to avail of more banking services. Another objective of course is to increase clientele base. All these can be achieved through referrals made by existing clients or by giving out marketing incentives to new clients. Incentive marketing has benefits for both the bank and the consumers. It presents an opportunity for the bank to broaden its customer base. On the other hand, consumers enjoy higher deposit rates, competitive interest rates, privileges, and many other banking perks. The following are three good reasons why banking experts use marketing incentives:
Gain More Customers
It is just rational for banks to make use of marketing incentives for this very reason. The more clients they have, the more business they will gain. Obviously, more business will strengthen the company in general. At present, most banks present their customers with a marketing incentive that gives them the opportunity to get more than just a regular checking or savings account. Customers switching from a different bank or opening a new account are offered cash gifts or other types of incentives.
Additional marketing incentives are normally granted to clients who avail of a bank's direct deposit or automatic bill-pay program. These are also offered when existing clients have successfully referred a prospective client to the same bank. This practice is very popular among banking institutions and typically, rewards of up to 50 US dollars are doled out to the existing client who made the referral while the new client is usually rewarded with gifts or tokens.
Sell Extra Services
Attracting and keeping customers is one thing, but incentive marketing persuades the current clients to purchase more products and services. Marketing incentives are offered by banks in order to tap their existing client base and get them more active in inquiring about the other services that are available. Simply placing an announcement or signage about the incentive in the lobby or window can help achieve this goal.
Customers are rewarded with marketing incentives when they make direct deposits or when they use online bill pay. When new customers, opening an account sign up for these services as an add-on, they can also enjoy rewards. This way, client activity is increased, and passive customers become a good source of income because their relationship with the bank is strengthened.
Fresh Customers via Referrals
The easiest way for a bank, or any business, to gain additional customers is through word-of-mouth. Implementing incentive marketing to please the current customer base will lead to those customers referring your services to friends and family. Providing marketing incentives to your customer base will lead to new customers, and there is no more cost-effective way to gain additional business.
The cost of incentive marketing is only slightly higher than what it costs to generate business through e-mail, direct mail or cold-calling potential clients, and the results are far greater. These marketing incentives will result in a new customer who trusts your business and services more than a cold-call customer would, due to the things they have heard through their friend or family member that referred your services.
Gain More Customers
It is just rational for banks to make use of marketing incentives for this very reason. The more clients they have, the more business they will gain. Obviously, more business will strengthen the company in general. At present, most banks present their customers with a marketing incentive that gives them the opportunity to get more than just a regular checking or savings account. Customers switching from a different bank or opening a new account are offered cash gifts or other types of incentives.
Additional marketing incentives are normally granted to clients who avail of a bank's direct deposit or automatic bill-pay program. These are also offered when existing clients have successfully referred a prospective client to the same bank. This practice is very popular among banking institutions and typically, rewards of up to 50 US dollars are doled out to the existing client who made the referral while the new client is usually rewarded with gifts or tokens.
Sell Extra Services
Attracting and keeping customers is one thing, but incentive marketing persuades the current clients to purchase more products and services. Marketing incentives are offered by banks in order to tap their existing client base and get them more active in inquiring about the other services that are available. Simply placing an announcement or signage about the incentive in the lobby or window can help achieve this goal.
Customers are rewarded with marketing incentives when they make direct deposits or when they use online bill pay. When new customers, opening an account sign up for these services as an add-on, they can also enjoy rewards. This way, client activity is increased, and passive customers become a good source of income because their relationship with the bank is strengthened.
Fresh Customers via Referrals
The easiest way for a bank, or any business, to gain additional customers is through word-of-mouth. Implementing incentive marketing to please the current customer base will lead to those customers referring your services to friends and family. Providing marketing incentives to your customer base will lead to new customers, and there is no more cost-effective way to gain additional business.
The cost of incentive marketing is only slightly higher than what it costs to generate business through e-mail, direct mail or cold-calling potential clients, and the results are far greater. These marketing incentives will result in a new customer who trusts your business and services more than a cold-call customer would, due to the things they have heard through their friend or family member that referred your services.
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