Want to justify your Marketing budget?

A new J.D. Powers & Associates report on shopping and switching rates can not only justify your Marketing budget, but it should also put you on the offense ... and defense.

Here are the highlights:

• 8.7% of customers said that they switched their primary financial institution in the last year (up from 7.7% the previous year)
• Shoppers consider 1.9 banks while shopping (up from 1.6)
• The most common reason to switch is life circumstances
• Advertising/awareness & convenience drives their decision
• Less than half (43%) of customers who purchased an additional banking product did so with their PFI

So what does all this mean?

Go on the Offense

We've been saying it for about 2 years ... their is money in motion! People are switching financial institutions. You need to be in the 1.9 institutions that they consider.

Life Stages: You can differentiate your institution and speak directly to your customers needs through life stage messaging. Click here for more life stage information.

Get them to know you: Awareness drives consumer's decision ... and you're in the awareness business. Use your budget wisely and be on the radar of those folks most likely to be your best customers. Use segmentation and mirror modeling to locate your best opportunities - then focus your budget on them. You likely can't battle Chase, PNC, Wells Fargo and Bank of America dollar-for-dollar. It's not about getting EVERYONE to know you, it's about getting the right people to know you.

Go on the Defense

We can no longer assume that our PFI customers are safe or loyal. Assume that less than half of them will come to you for their next product and more than 8% of all your customers are looking to leave. Pretty scary stuff huh?

Focus on cross sells, strategically bundle your products and focus on your team's training - are they prepared to facilitate the customer conversation?

Not to be a fear-monger, but this report should both scare you, energize you and justify the importance of marketing now, more than ever. Share this with your management team and show up prepared with a plan based on ROI.

Good luck and take care,

Eric