Making the Switch: Checking Account Path to Purchase
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Transcript of Making the Switch: Checking Account Path to Purchase
The overall checking account market has
grown slowly at ~1% in recent years
About 6 in 10 new bank customers open at
least one additional loan, credit card,
investment or deposit account after
opening a checking account
Checking accounts represent 20% of total
consumer banking profits (roughly $25B)
and serve as the “anchor” relationship
between a bank and its customers
SLOW GROWTH CROSS SELL ANCHOR PRODUCT
IMPORTANCE OF CHECKING ACCOUNT ACQUISITION
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METHODOLOGY
SAMPLE TIMING
TECHNIQUES RESEARCH PARTNERS
n = 1,743 total respondents
868 Switchers
375 First Timers
500 Abandoners
January 15th – March 5th, 2014
Comprehensive Survey +
Online Behavioral Analysis
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ONLINE RESEARCH
Many consumers don’t actively
research checking product online
within the shopping period
TRIGGERS TO APPLY
Digital influences
offline & online
acquisitions
Most consumers
still prefer to open
in branch
CONSUMER MINDSET
Brand preferences
are set before
consumers are
in market
Majority of switchers
open an account
within one month of
shopping
OTHER INFLUENCES
Consumers are
influenced from
recommendations by
family and friends
Both product
features & brand
perception are key
priorities
MARKETING & NEGATIVE EXPERIENCES DRIVE SWITCHERS INTO MARKET
[Q02 - Still thinking about that earliest moment, what are the TOP reasons that made you first start to think about switching your primary checking account to a new bank?]
20%
40%
40% Life Event
Negative Experience
Ad/Offer/Promotion
5
32%
32%
23%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Switchers
Wasn't sure which bank
Had a few banks in mind
Had a bank in mind
Knew exactly which bank
2 IN 3 HAVE ONE BANK IN MIND DURING THE INITIAL WANTING PERIOD
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[Q22: When you first considered switching banks which one of the following statements best describes your mindset about banks?]
AND OFTEN CHOOSE THEIR INITIAL BANK PREFERENCE
[Q23: Was [current bank name] the one you originally had in mind when you first decided to open a new checking account?]
90%
of consumers who start with one bank in mind end
up opening an account with that bank
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IMPLICATION #1: A strong brand is key to
being considered
ONLINE RESEARCH
Many consumers don’t actively
research checking product online
within the shopping period
TRIGGERS TO APPLY
Digital influences
offline & online
acquisitions
Most consumers
still prefer to open
in branch
CONSUMER MINDSET
Brand preferences
are set before
consumer are
in market
Majority of switchers
open an account
within one month of
shopping
OTHER INFLUENCES
Consumers are
influenced from
recommendations by
family and friends
Both product
features & brand
perception are key
priorities
30% OF SWITCHERS SEARCH FOR INFORMATION 18% of Switchers search branded terms (vs. 17% of control group), and 18% use generic search (vs. 19% of control group)
Source: Compete panel, online behavioral data (90 days prior to acquisition)
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SOME CONSUMERS USE BANK ONLINE TOOLS
Bank Site Tools: Deposit account product information pages, other product information pages, branch locator & application pages
Source: Compete panel, online behavioral data (90 days prior to acquisition)
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26% of Switchers use online bank tools vs. 21% of control group
EVEN FEWER CONSUMERS USE AFFILIATE SITES Only 15% of Switchers visit bank comparison sites prior to opening an account vs. 12% of control group
Source: Compete panel, online behavioral data (90 days prior to acquisition)
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MOST SWITCHERS USE FEWER THAN FIVE ONLINE TOUCHPOINTS
53%
12%
30%
5%
1-5 touchpoints 6-10 touchpoints 11-50 touchpoints 51+ touchpoints
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Source: Compete panel, online behavioral data (90 days prior to acquisition)
IMPLICATION #2: Marketers can’t rely on consumers to raise their
hands
ONLINE RESEARCH
Many consumers don’t actively
research checking product online
within the shopping period
TRIGGERS TO APPLY
Digital influences
offline & online
acquisitions
Most consumers
still prefer to open
in branch
CONSUMER MINDSET
Brand preferences
are set before
consumer are
in market
Majority of switchers
open an account
within one month of
shopping
OTHER INFLUENCES
Consumers are
influenced from
recommendations by
family and friends
Both product
features & brand
perception are key
priorities
SWITCHERS LEAN HEAVILY ON RECOMMENDATIONS
23%
26%
32%
44%
Saw/received ad/promotion
Recommendations from representatives or thoughtabout prior experiences
Read or searched for information
Recommendations from family/friends/coworkers
[Q07: Which of the following, if any, had an influence in deciding to make [current bank name] your primary bank?]
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ADVERTISING DOES PLAY A ROLE, DIGITAL MORE SO THAN TV OR PRINT
32%
31%
21%
16%
14%
11%
10%
9%
9%
7%
6%
5%
3%
3%
Direct mail
All Digital (online, mobile, online video)
TV
Bank location/ATM
Newspaper
Radio
Magazine
While making a purchase
Outdoor
Mall
ATM
Elevator or gas station
Cinema
OF CONSUMERS WHO CITED ADS/PROMOTIONS AS AN INFLUENCER
[Q08 (S): You said that an ad had influenced your decision to switch to [bank]. Which specific types of ads influenced your decision?]
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MESSAGE TO KEY ATTRIBUTES & FEATURES
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Low fees
Low minimum
balance
PRODUCT CONVENIENCE
Branches near
where I live
Lots of ATMs
BRAND
Good reputation
High quality
service
[Q25: When deciding to switch banks, which of the following were important to you?]
IMPLICATION #3: Activate brand advocates and align messaging to
key brand attributes & product features
ONLINE RESEARCH
Many consumers don’t actively
research checking product online
within the shopping period
TRIGGERS TO APPLY
Digital influences
offline & online
acquisitions
Most consumers
still prefer to open
in branch
CONSUMER MINDSET
Brand preferences
are set before
consumer are
in market
Majority of switchers
open an account
within one month of
shopping
OTHER INFLUENCES
Consumers are
influenced from
recommendations by
family and friends
Both product
features & brand
perception are key
priorities
BANK LOCATION AND CONVENIENCE CLOSE THE DEAL
4%
4%
5%
8%
9%
11%
16%
21%
21%
Told to do it by spouse/familymember/friend
Convinced by a bank representative
Other
Limited time offer
Needed a checking account open by aspecific date
Had time available
Perfect combination of features
Convenience / ease
The bank was in the right location
[Q16: Now think about the exact moment when you decided to open the checking account. What was the one specific thing that got you to open the new
checking account with [bank]?]
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MOST CONSUMERS OPEN NEW ACCOUNTS IN-BRANCH
73%
of Switchers open their checking account at a physical branch
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[Q23: Was [current bank name] the one you originally had in mind when you first decided to open a new checking account?]
PRIMARILY DUE TO COMFORT OF TALKING TO A PERSON
61%
40%
38%
26%
18%
17%
16%
5%
1%
I feel more comfortable talking to a person
Had questions
Habit, I always open accounts that way
I thought it would be easier/faster
I needed to go to the branch/call a teller anyway
Didn’t know I could
Worried about security
I tried to but ran into issues
Other
[Q21: Earlier you said you did some online research before opening your new account, and that you opened the account on the phone/ in person (based
on answer to s10). Why didn’t you open the account online?]
OF CONSUMERS WHO OPENED THEIR NEW ACCOUNT IN-BRANCH
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IMPLICATION #4: Emphasize bank location and
convenience; Recognize influence of digital on branch
conversions
BRAND PREFERENCE IS SET BEFORE SHOPPPING
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BANK
REPUTATION
ONLINE
RESEARCH
ADS &
PROMOTIONS
RECOMMENDATIONS
BANK
EXPERIENCE PRODUCT
FEATURES
WITH MANY PATHS TO CONVERSION
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CONSUMER MINDSET
ONLINE RESEARCH
TRIGGERS TO APPLY
OTHER INFLUENCES
A strong brand is key to being considered
Marketers can’t rely on consumers to raise their hands
Emphasize bank location and convenience;
Recognize influence of digital on branch
conversions
Activate brand advocates and align messaging to key brand attributes & product features
STAY ALWAYS-ON THROUGHOUT THE PATH TO PURCHASE
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