What Chase Did Here To Gather Profitable Customers Was Smart

Bank Deposit Promotion

It is a testament to your marketing when your bank’s promotion is traded in the secondary market. Chase is currently offering a $200 bonus when you open a savings account with $15,000 or more (for 90 days minimum) of money not already at the bank. 

While a $200 cash bonus for a new account is on the high side of deposit account cash promotions, it is not unheard of. What is different is that Chase correctly chose to do this with a targeted mailed coupon instead of an open offer, as most banks would have done.


What Chase did is analyzed specific service areas based on household income (which can be inexpensively purchased from any number of databases) and demographic characteristics (young, mobile, two couple professionals, etc.) and delivered a select, limited offer with a clear call to action. The result – Chase garnered a higher marketing “lift” or response than average to a highly valuable customer segment that skews to the “soon to be mass affluent” crowd. Instead of getting a customer with a $2,600 lifetime value they brought in a customer with four times that value.


If you have ever been asked what your marketing is worth from the customer's perspective, here is another way to look at it. The coupon was so valuable that there is an active market for it on eBay which is what happens when you send a $200 coupon to the young and mobile. As such, consumers have started selling their coupon for $2 to $20 with the last trade at $10. Thus, your net worth went up by $10 (if you wanted to go through the hassle to sell), just by having the right profile and receiving that offer.


We have written about in the past that a cash bonus such as the one Chase did is multiple times better than marketing a rate due to its more benign effects on profitability. However, from this promotion, we can learn that a limited offer coupon to the right households can produce more value than an open offer to everyone. This is not to mention the additional advertising created on eBay. Nice move Chase. 

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