Maximize the Value of New Accounts with ‘Community Onboarding’

Attrition among new account holders typically ranges from 25 percent to 35 percent in the first year, research studies show. So what can credit unions do to stem the loss? Harland Clarke’s “Community Onboarding” solution may be the answer.

“Community Onboarding” is a highly cost-effective way for small and mid-size financial institutions to engage new account holders and:

  • Reduce attrition: Implementing an onboarding program lowers attrition levels by about one-third, according to the research firm Callahan & Associates.
  • Build relationships: Onboarding helps to get account holders more engaged —and engagement builds loyalty.
  • Grow wallet share: About 75 percent of cross-sales take place in the first 90 days after account opening, Callahan & Associates says.

How Does Community Onboarding Work?

Harland Clarke’s “Community Onboarding” program includes:

  • Personalized welcome letter: Within seven to 14 days of account opening, new account holders are automatically sent a personalized welcome letter branded with your institution’s logo and color palette, and signed by your financial institution’s designee.
  • Cross-sell coupons: The welcome letter includes coupons for the three “next-most-likely” products and services a new account holder will need: direct deposit, online bill pay, and debit card.
  • Value pricing: There are no set-up costs. Harland Clarke’s tiered, volume-based pricing structure is affordable for small and mid-size institutions.

Make the Most of Your Acquisition Investment

Callahan & Associates says that financial institutions spend an average of $442 per account holder in acquisition expense. When financial institutions embark on an onboarding program, the attrition level drops by almost 30 percent for credit unions.

 Obviously, this translates to substantially improved acquisition ROI.

Cross Sell and Drive Engagement … Fast

Roughly 75 percent of cross-sales take place within the first 90 days after account opening. Communicating early brings in more dollars, builds top-of-mind awareness, and lets new account holders know the range of your products and services.

Plus, attention during and after account opening increases satisfaction and decreases the likelihood of account closing, according to J.D. Power and Associates.

Build Profitable, Long-Term Relationships

Your account holder owns an average of eight financial products. Chances are only two or three are at your institution. Onboarding can help you expand your wallet share, increasing new account holder profitability and building long-term loyalty.

For example, on average, a checking account holder brings in about $500 in revenue annually. An analysis by Novantas and Harland Clarke’s own case studies show that if you add only direct deposit or only online bill pay, the revenue jumps to about $800 per year. Add both direct deposit and bill pay and the average household revenue nearly doubles. And the more products and services account holders have with your institution, the less likely they are to leave.

Onboarding works, and Harland Clarke’s “Community Onboarding” solution makes it easy to transition your new accounts into satisfied, profitable and loyal relationships.

Harland Clarke is a leading provider of financial industry marketing services. To learn how the company’s “Community Onboarding” solution can help your credit union enhance retention, build relationships and increase wallet share, call 800.351.3843, email contactHC@harlandclarke.com or visit www.harlandclarke.com.

Strategic Link is the NWCUA’s wholly-owned service corporation, using the power of aggregation to provide the Association’s member credit unions with exclusive high-quality, competitively-priced products and discounted services. Contact Director of Strategic Partnerships Craig Reed today to find out how Strategic Link can help your credit union save money while meeting its goals in 2014 and beyond: creed@nwcua.org.

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