eAdoption is not a new concept, yet the challenge in switching customers to the paperless movement is still impacting financial institutions' bottom lines. Despite the fact that about 85% of the U.S. population uses the Internet, most financial institutions only average 15%-20% electronic adoption rates, which means that there is much room for improvement. Download this white paper or click on the image above to learn about some of today's challenges that are hurting your bottom line- and how to solve them!
Human touchpoints are being eliminated with continual process automation, giving customers direct online and mobile control over their financial accounts. Tasks that once required a customer to walk into a bank or credit union are now carried out through the touch of a finger on a screen or keyboard. In turn, automation is altering consumer expectations, and marketers are realizing that static content is on its way to extinction.
Hotwire PR’s seventh annual “Communications Trends Report” highlights the fact that consumers expect timely, relevant and personalized content in real-time (think Snapchat, Periscope and Meerkat). This trend shows that customers now expect to feel as though they are receiving exclusive content while being a part of instant communication. This means they will be more responsive to personalized dynamic communications on all branded print and digital documents as well. As a financial institution, now is the perfect opportunity to provide real-time messaging to your customers for retention, cross-selling, upselling, and/or utilizing affiliate advertising.
Dynamic Messaging allows you to present strategic messaging to all customers or a specific target group and use consumer-facing marketing space by targeting account holders with products and services that best fit their needs. There are many ways to incorporate dynamic communications on specific customer criteria, including account balance, zip code, gender, or marital status, to name a few. You don’t have to reinvent the wheel in compiling data because you already have it. Why not use it to increase your bottom line?
Here are some tips on harnessing the power of dynamic messaging on customer-facing digital and print communications:
1. Target to individuals, not groups. Not all customers are created equal, so personalization is key! In a recent survey, only 21% of individuals reported that marketing messages they receive are “usually relevant.” This low percentage provides you with an opportunity to stand apart from all of the usual communications your customer receives on a daily basis by presenting them with messaging that is targeted specifically to their needs.
2. ABC- Always Be Changing. If you’re in sales, I know your first thought at seeing that acronym was, “Always Be Closing.” I think these two sayings go hand-in-hand. A colleague of mine once told me, “A static website shows your audience that your organization is static.” The same principle applies to all other customer communications. If your customers don’t see you moving forward with the times, they will be less likely to respond to your brand’s communications. A good practice is to re-evaluate messaging on a quarterly basis to ensure customers stay engaged.
3. Timing is everything. This ties both of the above points together. Say a customer has JUST opened up a savings account with your institution. Would it be wise to send them a document the following month containing an ad with the messaging, “Open a savings account with us?” No. Instead, maybe it’s time to start sending them ads about an auto or home loan.
The opportunities to speak to your customers on a personalized level without any human touch points involved are endless. As customer communications continue to shift, the importance of dynamic communications will continue to increase. To learn more about dynamic messaging, click here.
According to The Worthington Daily Globe, people in the Worthington, MN area received a phishing text that looked like it came from Fulda Area Credit Union (FACU) claiming a discrepancy or problem with the recipients’ accounts on Monday morning, February 15, 2016. Upon further investigation, these SMS messages were from scammers who targeted both members and non-members, indicating there was not a breach in FACU’s core, but rather a purchased list of phone numbers.
“It seems to be a classic phishing attempt where they just target a group of phone numbers trying to get information,” said Laura Honken, vice president of operations for Fulda Area Credit Union (FACU). “It just seems they’ve probably purchased a block of phone numbers and started out with that.”
Although Monday was a federal holiday, FACU employees acted quickly in order to ensure that their members and potential members’ information is safe and the brand is protected.
“It is our priority to make sure that if anybody did click on that, we are getting them protected as soon as possible,” Honken said.
Aside from immediately reporting the scam to authorities and cell phone carrier fraud departments, FACU employees started closely monitoring the credit union’s official Facebook page to field member questions, as well as answered the phones at the Fulda and Worthington locations.
As new details are sure to unfold, we want to first give kudos to FACU employees for their proactive approach in helping members and non-members ensure data safety. Secondly, we want to provide some quick tips on how to quickly and effectively communicate emergencies to members:
We live in a fast-paced world where customer communication expectations are higher than ever. The anticipation of a more personal interaction and simplified user experience has challenged banks to think of new ways to increase customer retention and encourage growth. This leaves many banks with the strategic question of adding value to daily customer interaction and experiences without negatively impacting the bottom line.
ADD A PERSONAL TOUCH
People like to feel recognized and known. Personalizing customer communications is an effective way to let customers know that they are individuals with specific needs rather than “just a number.” Furthermore, it creates a better user experience and is the difference between disruptive content and useful material...
To view the rest of our article on adding value to the customer experience without increasing costs, visit CBInsight.com.
By December 2015, credit unions saw massive growth in auto loans with balances projected to reach the highest to-date: $264.7 billion, according to Callahan & Associates. Furthermore, credit unions bagged 16.5% of the auto market, which is the highest year-end rate since December 2009 at 19.9%.
In an effort to aid credit unions in their continued pursuit of auto lending portfolio growth this year, here are some ways to utilize member-facing documents to meet this strategic goal:
Segment Your Audience
Because there is no such thing as a cookie-cutter member, standard marketing will not produce the same response rate as segment marketing. According to MailChimp, segmented email campaigns see 59.99% more clicks than non-segmented campaigns.
Incorporating targeting and personalization in your documents using business rules and workflows provides the ability to significantly improve your print marketing ROI.
Make it Easy to Respond
Many credit unions fall into the trap of creating extra, unnecessary steps for members to take in the pursuit of auto loans. Get ahead of your competition by making it easy for members to respond! A great way to do this would be to post a URL in the members' ePresentment documents that will drive members to a page where they can fill out a quick form in order to be contacted by one of your loan officers.
Communicate Risk Mitigation with Credit-Impaired Members
Mitigating risk, especially when lending to credit-impaired members, is of utmost importance to credit unions. Ensure your institution is covered by insurance that helps protect collateral or loan repayment, and then build that cost into those specific loan rates. In order to effectively communicate this with your members without causing uproar, utilize member documents to prominently communicate the increase in loan rates- and the reasoning behind said increase. Your members will appreciate the communication and will feel good knowing that you are working with them to better their overall financial standings.
Your core focus is your members, so effectively communicating with them on every level, especially on member-facing documents, is of utmost importance. Partnering with a document outsourcing company that can design, produce and deliver business-critical content on any platform is critical to portfolio growth.
Member-facing documents are the perfect delivery method for your auto loan portfolio initiatives. By personalizing messaging, alleviating the customer response cycle, mitigating risk, and choosing a document outsourcing company that aligns with your strategic business goals, your credit union will be well on its way to seeing an expanded portfolio.
Mortgage industry professionals are increasingly experiencing regulatory changes while trying to balance portfolios. The “do more with less” mentality in the industry has sent loan servicers on the search for ways to increase their profit per loan. At Lanvera, we understand the importance of revenue growth per loan and would like to share some steps you can take to expand the value of your portfolio.
In Segment Marketing, a borrower base is divided into groups of individuals that are similar in specific ways relevant to customer attributes such as age, gender, interests, spending habits, etc. According to MailChimp, segmented email campaigns receive 14.72% more opens and 62.84% more clicks than non-segmented campaigns. What does this mean for your portfolio? Borrowers are more receptive to information that is specific to them.
Lanvera helps increase revenues by providing the ability for our clients to sell affiliate marketing space to businesses that offer services similar to borrowers’ needs. Segment affiliate marketing in borrower-critical document delivery can be applied multiple ways:
· Present a marketing page to borrowers as they sign on to access their statements. Information such as marketing promotions or inserts can be utilized for maximum exposure and increased calls to action.
· Utilize digital onserts to optimize workflows and segment borrowers groups with particular offers most beneficial to the individual. Digital onserts are clickable, providing instant access to landing page promotions and a faster way to drive intended borrower behavior.
· Capitalize on multichannel expanded hyperlinks by including links to webpages and offers from directly within individual electronic documents. Interactive links provide borrowers easy and instant access promotional content.
The benefits of personalized marketing are enormous to both borrowers and servicers and can impact profit per loan significantly. As a partner, Lanvera helps to maximize borrower communications through segment marketing, resulting in improved ROI and higher e-Adoption rates. Click here to learn more on how you can net more profit per loan.
Today, there are an estimated 95 million millennials in the United States and roughly 53 million of them in the labor force. As time marches on, this number will continue to increase, and your customers in this segment will advance to mid and c-level roles. In other words: It is wise to continually search for new ways to reach this generation. That being said, below are some key facts about millennials (and how they can impact customer-facing documents):
Millennials are Digital Natives
Millennials are characterized as a knowledgeable group in digital media trends and applications. They are accustomed to accessing data at any given point from any mobile device or computer. What does this mean for your customer-facing documents? You cannot survive on mail and email alone! Mobile delivery and ePresentment will help you achieve a desired response with this particular group.
Millennials Appreciate Receiving Mail
Before you make a goal of completely eliminating snail mail in lieu of web, email and mobile delivery, remember that millennials still value tangible items. Mail is no exception. Yes, this is shocking- but valid due to digital oversaturation in the marketplace. A study of response rates by the USPS in 1987, 2011 and 2012 reveals that people 18-21 would read mail immediately 65% of the time, while people 21-24 would read immediately 45% of the time. The best way to capitalize on these statistics on your customer-facing documents is, of course, to keep sending mail. However, keep in mind that consumers make subconscious choices about people and products within 90 seconds of contact or interaction, and between 62 and 90% of that initial assessment is based on color alone. Utilize color marketing and customer-specific messaging because it will help your documents stand out and encourage customers to open and respond favorably to snail mail.
Millennials Like to Support a Cause
Research shows that almost 50% of millennials would be more willing purchase from a company if they know their purchase will support a cause, while 37% say they are willing to purchase a product or service to support a cause they believe in- regardless of the cost. This is where segment marketing comes into play while building your customer documents. If your organization, for example, supports a certain charity foundation or sustainability initiative, there is nothing wrong with communicating that to your customer base. This will give you more credibility in the eyes of your millennial customers and increase brand loyalty.
For more helpful statistics about millennials, you can visit goldmansachs.com and leadscon.com (an expanded aggregation of stats). With millennials and other generations, it is always a best practice to keep an eye out for trends and statistics that can impact customer communications.
Communicating with customers is expensive. That’s a fact. The daily notices, statements, invoices and other transactional documents you’re required to send out represent a significant amount of cost for any organization.
The main component of document processing costs? Technological Infrastructure.
These days, customers expect personalized and easy-to-read documents, available on numerous delivery platforms and customized to specific individuals rather than a general audience. Today we’ve compiled a list of the 6 elements that comprise the most advanced technological infrastructure, and thus, the most efficient operational systems.
1. Design Software – The first step in driving down costs is how you design your customer documents. Software that is easy to use, provides the ability to maximize page real estate, and capitalizes on personalized messages is critical to offer customers optimized and clear documents.
2. Marketing Software – Marketing software should accommodate easy design and dynamic inclusion of banners ads, marketing messages and customized clickable links in eStatements.
3. Intelligent Inserters – Insertion equipment is essential for fast production, as it eliminates the time spent individually stuffing envelopes, and allows for marketing inserts to be included based on rules and workflows.
4. Fast and advanced printers- The sheer amount of printers necessary to provide fast production of documents is intimidating for businesses with high volumes of customer communications. Additionally, consumers are beginning to expect color graphics and complex imaging in their statements, which requires even more advanced and expensive equipment, and increased capital expenditure.
5. Archival and Tracking Software – Once documents hit the mail stream they need to be tracked, and even after they’ve been delivered, they should be accessible to customer service reps and customers alike. Software that allows for mail tracking and document archival is critical.
6. Security and Back-up- All customer document data should be backed up comprehensively and securely. A business continuity plan is an expense that, if neglected, could result in serious consequences such as lost business, lost customers, and lost profit.
These costs add up, so it’s no wonder that approximately 50-70% of total indirect spend in the financial service industry is allocated to IT and technology alone, both in the form of software and equipment, and it’s estimated that this spending could surpass $500 billion by 2020.
The good news? Document outsourcing companies, like Lanvera, are here to take these expenses off your hands, decreasing your capital expenditure funds, and providing document processing costs that are predictable, manageable, and in line with transactional volumes. Contact us today to find out how Lanvera can help your business reduce IT spending and improve statement processing operations.
then Hurricane Katrina hit New Orleans in 2005, USPS mail service was suspended for weeks across several states. It was critical for business to reach their customers to deliver their documents, but their typical delivery strategy had come to a screeching halt.
Natural disasters can cause unexpected interruptions that wreck business operations for weeks or months, and while you can ensure that your data is secure, and your own operations are backed-up, the threat of external organizations lacking preparation is an element beyond your control… to an extent.
A key element of preparedness is having the ability to quickly and easily adapt to unexpected changes, whether or not they’re something you could have anticipated. Backing up mail delivery with e-Presentment is a great way to ensure the ability to communicate with customers despite external limitations beyond your control.
After the hurricane, we at Lanvera were able to help several companies move quickly to electronic presentment with email communication so that relocated customers could access their documents online.
ADAPTABILITY IS CRITICAL.
There are 3 things you need to ensure a smooth transition and a quick implementation to effectively take advantage of ePresentment as a form of back up mail:
Data security is the most important factor allowing for a smooth transition to ePresentment, as it ensures your customer data itself remains intact despite disaster. Data security includes ongoing data audits, regulatory compliance maintenance, and redundant data centers.
RESPONSIVE THIRD-PARTY VENDOR
Partnering with a vendor to provide your data security is incredibly important. Not only do document outsourcing partners allow you to house and back up your data at off-site locations, they’re experts in workflow design and have years of experience to leverage in reacting quickly and fluidly to change, helping businesses to easily and successfully transition to ePresentment if necessary.
USER FRIENDLY, SELF-SERVICE INTERFACE
A user friendly, self service portal interface will allow businesses facing disaster to quickly and easily upload and import their files for fast implementation and production. The ability to quickly move customers to electronic presentment with email communication is essential to give customers easy and fast online access, and supplement any delay in printing and processing operations, and the ability to have complete control over the document creation and transition process is a huge benefit.
These three elements will help any business ensure a smooth transition to electronic presentment if necessary, but preparation is key.
To really take control of this type of disaster before it strikes, work toward transitioning your customers to electronic adoption early.