Deepening Customer Relationships: Marketing on Autopilot

Leveraging Marketing Automation for Cross-Selling

The objective of augmenting the share of wallet among existing customers is attainable through a structured cross-sell program, ideally implemented via marketing automation. Imagine a scenario where customers are automatically presented with the products they most likely need each month. This methodology ensures consistent customer engagement and significantly reduces the daily operational load on marketing staff.

Traditional Mailing and Targeted Offers

Many financial institutions still depend on matrix mailing programs to extend cross-sell offers through traditional mail. These offers, however, should be strategically targeted and disseminated across multiple touchpoints over time to enhance the frequency and impact of the message. Targeting can be achieved through business rules selections or by employing sophisticated customer product profiles that predict the next probable product purchase. Aligning cross-sell offers with the institution's strategic goals is essential, and program execution can be automated to generate letter offers at specific intervals, ensuring ongoing customer engagement.

MicroModeling: A Sophisticated Approach to Customer Profiling

An effective strategy for targeting specific product offers to the most responsive customers involves customer product profiling. This approach utilizes a proprietary modeling process, like WordCom's MicroModeling, which constructs a detailed customer product profile by appending over a thousand demographic, behavioral, and lifestyle attributes. This model then scores customer records based on their resemblance and likelihood of responding to marketing campaigns while identifying those unlikely to engage with certain products or services. The model can be refined by adding specific demographics, affluence, and credit risk data.

Multi-Segment Program and Omnichannel Communication

A robust multi-segment program should utilize all available communication channels. With mail serving as the program's centerpiece, email campaigns should complement the letters, reinforcing the offer before and after mail receipt. Additionally, digital marketing strategies, including social media follow-ups, are crucial for maintaining the visibility of the cross-sell offer.

Analyzing Cross-Sell Program Results

Understanding the outcomes of a cross-sell initiative is vital for evaluating its organizational impact and refining strategies to enhance results. Key metrics include direct responses (customers opening the offered product/service) and purchase responses (opening a different product/service). Analyzing open rates, balances generated, and the Return on Marketing Investment (ROMI) is crucial for assessing the program's profitability. Offers and selection criteria should be continuously refined based on these insights.

Bank marketers aiming to increase products/services per household while driving customer retention and profitability will find a robust cross-sell program an effective solution. In the post-vaccination era, where customer banking needs are evolving, such programs offer a strategic avenue for enhancing customer relationships and achieving institutional goals.