Ahh, Summer – the taste of watermelon, the smell of BBQ and the struggle to keep from getting an iPhone-tan line as we text from the pool. We have been waiting all winter to start complaining about the summer heat and now we get our chance. Regardless of what you have planned for the dog days of summer, the season is also the time to start planning your winter account promotions. Since winter will be the time when interest rates will start to rise, surge balances could leave you and everyone’s attention turns to the holidays (Winter is traditionally the worst time to market a bank product ) you want to be especially thoughtful in 2015. Luckily, we have your back so you can enjoy more lounge time this summer.
We call it the “New Year’s Countdown Promotion” and it is quantitatively designed to stand out and acquire new small business accounts in what is set to be one of the toughest times to market a relationship product bundle. The package has a set of unique features that have proven attractive to small business customers and is the perfect account to lead into the holidays. This account is designed with the following features:
- A “countdown” bonus where the business earns $300 for signing up the first month (October), $200 for the second month, and $100 for signing up in Dec.
- Once New Year’s passes, you extend the $100 bonus, plus offer $100 cash management credit to sign up the first week in January (a great time to market).
- You then send a notice to all existing customers of the promotion and offer them a surprise $100 cash management credit as your New Year’s gift.
The Account Features
- No fees for 2015 and 2016. Fees after 2015 will be set at your current 2015 levels, but are subject to change.
- Business Savings with a 1% rate for 12 months. This may seem high now, but it will seem less so after one or two Fed rate hikes.
- 1% reduction on qualifying small business loans – small balances loans below $350k go from an average of 6.75% to 5.75%
- Up to $1,200 merchant service credit for 2016 ($100 per month) for accounts that process above $25k per month of transactions
- Waived closing costs on all long-term real estate financing with a 2% teaser rate for the first year and a $10,000 business credit to be used for marketing (or other qualifying expense that helps build the business) for qualifying real estate loans over $1mm
- 1-3 free consultation services that start in 2016 and helps build the business to include marketing, tax planning, international trade, mobile app design, etc.
Why This Promotion Works
This account package is a true relationship drive offering that is designed not only to stand out with the 1% rates, credits and reduced fees, but has many touch points that stimulate engagement such as the $10,000 business credit, teaser rate and educational component.
In addition, the countdown bonus feature gives a time element that make customers take action sooner and helps provide milestones to market around each month. The surprise $100 cash management credit is a way to build a “thank you” in to drive satisfaction and also serves to remind the account to get going after the first of the year.
The 12-month features within the account are long enough to be material, it captures the theme of the New Year promotion and is sufficient time enough to change behavior. The end result is the account should have a target profitability of 35% or better risk-adjusted ROE with an eight or longer year lifetime value.
As we head into the jaws of summer, think about setting up the above New Year’s promotion to help get 2016 off to a strong start and help capture the holiday spirit. If you need help with the above details, we are standing by. Then again if you just want to share your vacation stories, we are standing by as well. Just be prepared to hear us complain about the heat.
Submitted by Chris Nichols on June 18, 2015