Time is Money: 5 Ways to Re-Engage Dormant Bank Customers

Oct 31

As one of the most essential services in modern-day society, competition across the community banking sector has surged in recent years. From fintech firms to newly-established payment platforms, there’s no doubt that financial institutions across the US are having to up their game.

But, with changing regulations and a whole new layer of digital services to juggle — putting time into effective marketing strategies can fall down the list of priorities for community banks.

Re-engaging Dormant Bank Customers

While there’s no doubt that attracting new banking customers is essential for your community bank, there’s a cheaper and more straightforward way to boost revenue and keep things running smoothly: re-engaging dormant customers.

Think about it: these customers are already familiar with your services, they require little or no onboarding, and the best part — you already know everything about them!

As a community institution, you’re already focused on great service. But focusing on these five things can help optimize your customer retention, and spur existing, yet dormant, customers to re-engage with your institution.

Here’s 5 key tips for you to consider:

1. Remind Customers Why Your Bank Stands Out

You already know that building and maintaining a solid reputation is vital in the community banking industry. From how you position yourself, to your tone of voice, your brand identity needs to exude reliability, confidence, and long-term commitment to your customers.

With this in mind, what strategies can you employ to rekindle faith in your services and remind customers why they chose you in the first place?

As part of your bank customer retention strategy, highlight:

Transparency: Clearly communicate services, fees, and policies to build trust
Consistency: Establish a consistent tone of voice across your website, digital content, and general marketing materials to promote the reliability of your bank
Education: Create educational materials to establish yourself as a trusted industry voice and show your dedication to keeping your customers informed
Feedback: Create user-friendly customer feedback channels and act on insights provided through customer satisfaction surveys
Security: Invest in (and let customers know about it!) cybersecurity to protect customer data, assure safety, and promote customer loyalty
Product innovation: Continue to update the products and services you offer to ensure you’re one step ahead of the competition. It’s often the case that new fintechs market products as innovative, when it’s already something you offer, or could offer easily.
Sustainability: Implement eco-friendly initiatives to reflect modern values and showcase yourself as a respectable entity within the community
Partnerships: Collaborate with local businesses to strengthen your presence and ensure your banking services benefit from word-of-mouth referrals
Community engagement: Participate in local events to enhance your reputation within the local and wider community
Social responsibility: Support local charities, take part in community projects, and ensure your Diversity and Inclusion (D&I) strategy is up to scratch

Tip: Customer satisfaction is something that should always be showcased, and good customer retention strategies can do this smoothly and effectively. For example, dormant bank customers often miss out on new service announcements, or don’t realize the full extent of what community banks can offer. To combat this and build trust at the same time, leverage user-generated content (UGC) and customer testimonials to provide real-life insights into how your full range of banking services are benefiting customers.

2. Take a Personal Approach

As mentioned, one of the unique advantages of re-engaging existing customers is that you already know a lot about them. From demographic data to their financial stage in life, with the right level of information (acquired and stored compliantly!), your bank is already well-positioned to customize communication.

By creating personalized communications and tailoring offerings to suit various segments of your audience, you can:

Resonate more effectively with your customers’ needs: By understanding the unique requirements of your customers, you can address them directly and improve the customer experience. You’re talking to them about their problems and how you can solve them, not just pushing an account or loan.
Enhance engagement: Personalization, especially across email campaigns and other forms of direct correspondence, leads to higher customer engagement
Boost customer loyalty: Tailored experiences demonstrate your commitment to the long-term satisfaction of your customers, allowing you to change your approach as their customer journey evolves
Increase cross-selling opportunities: If you know what stage of life your customers are at, you can offer products and services that align with their current and future financial goals
Maximize marketing ROI: By sending only relevant information to the appropriate part of your audience, targeted communication can reduce ineffective use of valuable resources e.g. paid ads

Tip: To retain customers, it can also be a good idea to celebrate milestones in your banking relationship, such as mortgage approval or account anniversaries. Something as simple as a celebratory email or a small physical token of your appreciation can show how much you care about and value your customers.

3. Offer Additional Value

Speaking of value, getting customers back on track with your services might take a little extra encouragement. To regain customer attention, it’s important to provide compelling incentives that make the value of your offerings too hard to resist!

To help your bank stand out against competitors, consider:

Starting a rewards, referral, or loyalty program
Launching exclusive features for your mobile banking app
Offering personalized financial advice
Hosting financial webinars or workshops
Introducing limited-time promotions
Sending personalized offers

Additionally, consider starting a newsletter or blog that delivers valuable tips on saving, investing, and managing finances. By regularly providing your dormant customers with practical resources, you can show your commitment to earning their loyalty by enhancing their financial well-being.

Tip: Creating targeted content for a blog section on your website can also be great for Search Engine Optimization (SEO). Consult a marketing expert about how to ensure your digital touchpoints are being found by the right people, at the right time!

4. Ensure a Smooth Customer Experience

In line with other industries, banking customers now demand efficiency and responsiveness across all online banking interactions. Slow or complicated processes can be a big turnoff, which is why it's crucial to highlight your dedication to efficient and accurate service.

Every interaction with your bank should be seamless, from logging onto your mobile app to visiting a branch in person. Even reducing an interaction by one click or button press can drastically impact the perceived “smoothness” of the transaction.

To achieve this:

Conduct regular testing of your website and mobile apps
Implement user-friendly interfaces
Ensure responsive customer support
Simplify complex processes
Actively seek customer feedback

Tip: Be sure to monitor customer satisfaction scores and other relevant data to pinpoint exactly where the customer experience may need improvement, and to allow for a better allocation of resources.

5. Emphasize Your Commitment to the Human Connection

In the era of digital banking, customers still want to feel like they can rely on human support teams and receive help when they need it. While the use of chatbots and automated emails can improve response times and reduce human error, banking can be a delicate subject and sometimes, the human touch is necessary.

To increase the emotional connection between you and your customers, we suggest doubling down on these:

Personalized customer support: Train your support teams to address customers by name and refer to their past interactions, creating a more personalized experience
Dedicated account managers: Assign dedicated account managers to high-value or long-term customers who can provide individualized support and guidance
Humanize automated communications: When using automated messages or emails, make sure they maintain a friendly and approachable tone to mimic human interaction. Or better yet, occasionally surprise customers with a personal phone call or letter!
Accessible branches and phone support: Maintain a network of accessible branch locations and offer responsive phone support for customers who prefer in-person or direct communication
Timely and empathetic responses: Ensure that your customer support team responds promptly and empathetically to customer questions and concerns
Promote your human-centered approach: Place your team front and center across your marketing materials. That way, customers know that when they choose your bank, they can expect the right balance of technological efficiency and human support

You’re likely doing some or all of the above already — after all, your institution has probably been around for decades because of your focus on your customers. But in the digital age, these things are more important than ever.

How 2Novas Can Help You Re-engage Customers

As competition in the banking industry intensifies, re-engaging dormant customers is a valuable strategy for sustainable growth. By reminding customers of your bank's unique value, personalizing their experiences, and ensuring a seamless customer journey, you can successfully reignite their interest and loyalty.

However, customer retention in banking is still something that requires careful planning and consideration.

At 2Novas, we specialize in helping banks draw back and attract new customers with expert marketing insights and strategies.

Dan Novalis