Whether B2B or B2C, client acquisition generates terrifying costs. According to First Page Sage, these amount to $760 on average for commercial banks; Focus Digital claims that organic customer acquisition costs about $176 and paid acquisition circa $326; Lumos Business, on the other hand, comes with a cost range between $300 and $600.
Is it possible to reduce such expenses? Yes – your client acquisition services and efforts need to become more efficient. How can this happen? By adopting the data-driven approach. Read on to find out more.
Table of Contents
- The Challenges of Modern Client Acquisition in Banking
- Effective Customer Acquisition Services in Banking with a Data-Driven Approach
- The takeaway
The Challenges of Modern Client Acquisition in Banking
The above extremely high customer acquisition costs (CACs) did not emerge out of the blue; they are the result of industry changes. Modern banking has improved significantly for users, but it has also created challenges—obstacles that you need to overcome.
One such challenge is the cut-throat competition. Digitalization has brought new players to the market: FinTech companies, which attracted customers with their cutting-edge innovations. What is more, banking is no longer location-fixed, as more and more services are available on mobile banking platforms. Yet, this is just the tip of the iceberg.
Many banks were slow to adopt new technologies, turning into laggards and building an image for the whole industry—FinTechs are often perceived as more innovative. To add to that, the customer base also changed—while B2B customer acquisition is relatively similar when it comes to B2C, younger customers (Millenials, Gen Z) have highly different expectations than their predecessors. But this does not have to mean that commercial banks are in a losing position; it is possible to overcome these obstacles if you become flexible and utilize technology to your advantage.
Effective Customer Acquisition Services in Banking with a Data-Driven Approach
To battle this industry headwind, you need to understand your customers. Deliver personalized customer experiences, adopt the multi- and opti-channel approaches, and eliminate inconveniences that could hinder your efforts. Utilizing data will help you with all of that.
How exactly can you use data-driven systems to improve customer acquisition? Below, you will find a few applications.
Personalization
Personalization is among the key trends in digital banking. You need to employ it as often and as thoroughly as possible, aiming for hyper-personalization whenever you can. Only this will help you acquire customers more effectively.
Data-driven systems enable you to personalize your product offerings, communication, and marketing materials. You can collect data on your clients and potential ones (though the latter might become more difficult since Google is phasing out third-party cookies from Chrome). Then, you should prepare ads, emails, and other marketing materials tailored to each customer.
At the same time, this can be used to maintain engagement among your current customers, building up their customer lifetime value. After all, loyalty is one of the best countermeasures against rising customer acquisition costs.
Do you want to embrace the data-driven approach? Discover our AI module for banks, which will enable you to process large volumes of data effortlessly!
Finding Inconveniences
Data speaks volumes about your services. Therefore, it can be analyzed to discover bottlenecks in your digital services—inconveniences that might hinder conversions.
For instance, you can evaluate your onboarding process to determine which step generates the most abandonments. As a result, you gain information about what needs to be improved—you still need to come up with the solution yourself, but you can evaluate it by comparing the data pre- and post-implementation.
The Takeaway
Data-driven systems and services are the cornerstone of modern customer acquisition, whether we discuss B2B or B2C banking. Therefore, you should implement them in your organization as soon as possible to cut your customer acquisition costs and outperform your competitors.
You might also read: How to Use Marketing Automation in the Financial and Banking Services?
References:
- First Page Sage. (2024, August 1). Average customer acquisition cost (CAC) in banking. First Page Sage. https://firstpagesage.com/seo-blog/average-customer-acquisition-cost-cac-in-banking/
- Focus Digital. (n.d.). Average banking customer acquisition cost. Focus Digital. https://focus-digital.co/average-banking-customer-acquisition-cost/
- Lumos Business. (n.d.). Customer acquisition cost (CAC) data. Lumos Business. https://lumosbusiness.com/customer-acquisition-cost-cac-data/
