Deepening Relationships Through Cross-Sell and Engagement
STICK focuses on enhancing customer engagement and product adoption over time. By analyzing product mix, activity levels, and household potential at different stages of the customer journey, Stick identifies opportunities to cross-sell and up-sell products, helping deepen relationships and increase customer lifetime value.
Example 1: Cross-Sell Campaign for Multi-Product Adoption
- Strategic Goal: Increase product depth per customer by encouraging adoption of multiple products.
- Application: Identify single-product customers at various tenure stages and promote complementary products (e.g., offer a credit card to checking account holders or a savings account to loan customers).
- Positive Outcome: Customers are more likely to add additional products that enhance their financial wellness. Economically, multi-product adoption increases the average revenue per customer and strengthens long-term engagement, improving retention and reducing churn-related costs.
Example 2: Activity-Based Engagement Boost for Dormant Customers
- Strategic Goal: Re-engage dormant customers to boost activity and prevent potential attrition.
- Application: Track customer activity levels and identify those with declining usage. Run engagement campaigns with incentives or personalized messaging to encourage more regular use, such as offering bonus interest for deposits or transaction-based rewards.
- Positive Outcome: Reactivated customers resume account activity, stabilizing engagement rates and reducing churn. Financially, this sustains transaction volumes and retains valuable deposit and loan balances, supporting interest income.
Example 3: Personalized Offers for High-Potential Households
- Strategic Goal: Maximize value from high-potential households by aligning offers with their financial needs.
- Application: Identify high-potential households with specific financial needs, such as mortgage refinancing, and present them with customized offers that reflect their financial goals and past behavior.
- Positive Outcome: High-potential households adopt products that meet their needs, increasing loyalty and long-term engagement. Economically, this boosts loan originations and fee income, contributing to revenue growth and solidifying customer relationships.
Example 4: Onboarding Incentives for Early Tenure Stages
- Strategic Goal: Strengthen early-stage engagement to reduce attrition and build loyalty.
- Application: For customers in their first 90 days, offer onboarding incentives such as waived fees, higher introductory interest rates, or rewards for opening additional accounts within a set timeframe.
- Positive Outcome: Early-stage customers feel encouraged to explore more services, increasing the likelihood of multi-product adoption. Financially, this builds a strong foundation for future revenue, increases low-cost deposits, and lowers initial churn rates.
Example 5: Loyalty Program for Long-Term Customers
- Strategic Goal: Enhance loyalty among long-term customers to boost retention and satisfaction.
- Application: For customers at 180+ days, introduce a loyalty program with benefits like reduced fees, bonus rates, or access to exclusive products based on tenure and activity level.
- Positive Outcome: Long-term customers feel rewarded, increasing their commitment to your organization. Economically, this reduces churn and helps maintain stable deposits, improving the margin and supporting predictable revenue from engaged, loyal customers.