Technical article

Vaccinate your bank against customer churn!

Do you want to generate additional income immediately and improve customer loyalty at the same time? No problem!

The quickest and most effective way to do this is to cross-sell and up-sell a selection of value-added services from these areas:

  • Security
  • Discounts
  • Events
  • Editorial content

Emotional additional services for the transfer of satisfaction

The magic word: emotions! Emotionalize your customer relationships with the right additional services and measurably increase your customers’ satisfaction.

An analysis carried out by Mehrwerk has shown that the cancellation rate for value-added account holders who have used at least one service is actually only 0.2% (!).

Successful examples from our pool of over 400 (!) value-added services are:

  • Customer magazine and newsletter with exclusive events just for your customers
  • Worldwide emergency cash service within just 1 hour
  • Wallet cover: protection for cards, cash and the wallet itself!
  • Online and offline travel booking service with rebates of up to 7 % with all tour operators
  • Online and offline advance ticket sales with automatic ticket insurance and discounts of up to 10%

And on the condition that your customers pay with your bank’s payment cards, the following points also apply:

  • Warranty extension: all electrical appliances automatically receive an extension of the manufacturer’s warranty for a further 2 years
  • Reimbursement of 5 – 25 % on every purchase in almost every online store

Immune to customer churn

Provided that the following success factors are taken into account, customers can be retained even with price increases.

  • Few, but relevant value-added services
  • Regular multi-channel communication
  • Intelligent marketing process
  • Easy multi-channel access to value-added services (24/7)

The strategic solution: up-selling with value-added services

A bank that introduced priced value-added accounts with us has around 150,000 private current accounts. Of these, 63 % = 95,000 customers have now opted for the expensive value-added account – let’s call it the golden account here.

If you ask these customers, the “perceived value” of the additional services is a few hundred euros. The purchase price of the value-added services for the bank is around 10 % of the average sales price of the account of EUR 120 per year.

On the one hand, the bank thus generates income as the difference between the purchase and sales price of almost EUR 10 million (margin effect). On the other hand, the churn rate of this golden account is only 1/3 as high as the rate of the other current accounts without value-added services (customer loyalty effect).

Plug & play: cross-selling with value-added services

For the impatient among you, we have developed cross-selling products with well above-average completion rates (> 20 %), such as our wallet protection letter. The recommended retail price for this payment card and cash protection program is EUR 48 (incl. VAT).

You improve customer loyalty in a measurable and guaranteed way and generate significant additional income as a result. Here you have the choice between a portfolio commission of EUR 18 p.a. or a one-off acquisition commission of EUR 40 per customer.

We take over the costs and implementation of marketing. No investment on your part and only a marginal coordination effort. You can also test this solution with a number of customers (but at least 500 customers) at any time with a lead time of 14 days.