Just because you offer a high-yield checking or savings product doesn’t necessarily mean you’ll reach all the deposit goals you have for your institution. Success also depends on how well you calibrate your product design and mix. Simply copying and pasting a 5% or 6% promoted rate, adding some qualifiers, and calling it a day isn’t going to cut it.
A 5% or 6% rate on a checking account certainly grabs consumer attention — and will likely bring in a number of new accounts, as well as retain current accountholders. But how do you make sure the math works for your bottom line? There are far more variables than the promoted rate and the qualification criteria. For instance, the above-cap rate plays a huge role in account balance realization, as does the rate tiering structure. Also, pairing a high-yield savings product can encourage savers to voluntarily choose a lower yield thereby reducing the overall cost of funds. All of these are key in the success of your deposit goals.
But you still need to optimize and perfect the offer by creating compelling campaigns, advertising in the right places, and equipping every employee to sell these products.
Creating compelling marketing campaigns.
When creating marketing campaigns, there’s no need to reinvent the wheel. That can be time-consuming and costly. It makes more sense to leverage best practices from other financial institutions and look for ways to simplify and speed up the compliance process.
Many banks and credit unions have small marketing departments working on shoestring budgets. It makes more sense to work with a partner that can create proven advertising and compliance language for all your marketing channels, whether it’s posters in the branch, ads on social media, or direct mail pieces. And don’t be afraid to go old school. For instance, Atlantic Federal Credit Union uses digital channels to promote their high-yield checking, as well as radio, TV, and direct mail. MCT Credit Union uses digital marketing and has found billboards to be very effective.
Billboards have also been a winner at Bank of Tescott, a $433 million asset institution with five branches in Kansas. The bank rented three billboards surrounding its biggest market in Salina, Kansas, to capture traffic coming into the city. Digital advertising is definitely important, but like any other online content, it can become white noise that consumers ignore. Billboards and other “old-fashioned” advertising capture consumer attention, even if only briefly, on their daily commute.
The point is that all channels can be effective. It’s just a matter of finding what works best for your institution.
Equip your employees to sell.
That starts with confidence. Ensuring every team member has the tools and information to sell confidently is a must — and that means training and ongoing support. Consider using mystery shoppers and e-learning materials to help frontline staff elevate their game.
Make sure your front line leads with the product. The frontline staff is critical in making consumers aware of your high-yield checking and savings products. Just remember, this may be a transition for them. Perhaps in the past, you emphasized the importance of loans. Now, you’ve moved to deposits. Your front line needs the time and education to make that pivot as well.
That was certainly the case at MCT Credit Union. For a long time, their entire focus was loans, loans, loans. They then switched to deposits. That required educating the staff on how liquidity works in the banking system and why liquidity is critical to the credit union’s ability to serve its members. They also educated employees on how high-yield checking and savings accounts increase member stickiness while providing members with a valuable product.
Add innovative approaches to selling.
This is where you can be innovative and even have some fun. It’s simply a matter of creating ways to make selling more interesting and exciting for your staff. Bank of Tescott did just that by making a marketing event an opportunity for team building and community giving.
The bank was offering 6% on checking with a $50,000 balance cap, which they felt was a homerun offer. They just needed to get the word out. To help launch the product, the bank gave each employee an envelope containing between $5 and $100 — plus an encouraging note tucked inside the envelope. No one knew what denomination was in their envelope. Staff members were asked to introduce themselves as an employee of the bank to someone they didn’t know, hand them the envelope, and watch the person open it. The reactions ranged from “thank you” to people actually breaking down and sobbing. And it wasn’t the money that drew the most heartfelt reactions...it was the notes.
The staff came back with huge smiles and amazing stories. In addition to being a feel-good exercise, it also helped employees feel more confident talking to customers. Bank of Tescott’s staff grew more comfortable with asking qualifying questions to provide the best products for specific consumers — including high-yield checking and savings.
A great offer isn’t always enough.
Coming out with a head-turning, no-brainer offer can definitely move the needle. But if you want to keep it moving and reach your deposit goals, you’ve got to take that offer to market in a way that drives real results. Consumers need to be aware of it, to understand it, and to fall in love with it.
Taking steps like these can make that happen.