Monthly Archives: March 2011

Email Re-Engagement Strategy #4: Looking for Answers and the Last Chance

Recent EMI blog posts discussed the growing importance of email engagement and the roles of preferences and pursuing new tactical and multi-channel approaches in re-engaging customers. But even after you deploy all of these tools, some customers will inevitably remain unengaged. Typical engagement best practice advice will tell you that this is the time to pull out the ultimate arrow in the re-engagement quiver: the Last Chance email. But this is a scary step, especially if you are a company that nurtures a relatively small email list. A Last Chance is, after all, the end of the road—a non-response shuts down all email communication.

For this reason, if the number of remaining non-responders is great enough to justify the investment, we recommend conducting primary research among the unengaged to learn:

  • Are they chronic non-responders? That is, do they sign up with other companies as well and then not view or click on emails?
  • If not, what are the content, messaging, and media elements that drive their response to other companies’ emails?
  • What is their actual, current level of interest in your product and their position in the buying process? 

If this research indicates that there is little hope that changes to the re-engagement program would deliver a strong return, then the Last Chance is an appropriate next (and final) step. If you do implement this tool, think of the Last Chance as a series of emails rather than a single one. Over the course of two or three emails, introduce the recipients to the idea that you will be ending their email communications and then incrementally increase the pressure on them to respond. With the final email in the series, you close the book on the non-responders and treat them like unsubscribers, secure in the knowledge that you have done everything you could to re-engage them.

PNC revamps credit card portfolio to focus on relationship rewards

Earlier this week, PNC introduced three new rewards credit cards, with bonus rewards tiers for cardholders who also have specific PNC checking accounts. This relationship rewards approach builds on PNC’s existing PNC Points program, which enables customers to combine points earned on credit card and debit card spending, as well as on various banking activities. Two of the three new cards are also in the PNC Points program; the other offers a cash rebate.

While Citi’s ThankYou Network is frequently cited as the archetypal relationship rewards program, PNC’s bonus rewards concept has more in common with the Chase Exclusives program. Both programs provide bonus earnings for their checking account customers, and underscore the primacy of the checking account as the key relationship product for banks. It is also notable that all three banks have built their relationship rewards programs using a card-based points architecture.

With the Federal Reserve’s proposed cap on debit card interchange, many leading banks have announced the discontinuation of rewards on debit card spending. From a relationship perspective, this means that some banks are refocusing attention on the checking account itself, rather than the plastic attached to it. In the case of PNC, it is telling that the level of bonus reward is based on the checking product owned, each with different minimum balance requirements (e.g., 50% bonus with PNC Performance Checking Account; 75% bonus with PNC Performance Select Checking Account).

Huntington on track to meet small business lending commitment

At the start of 2010, Huntington Bank committed to lend $4 billion over three years to small businesses in its footprint, joining leading banks like Chase, Bank of America and Wells Fargo in making specific small business lending commitments.

Huntington reported yesterday in a press release that it lent $1.1 billion to small businesses in 2010, with an acceleration in this lending in the second half of the year, which the bank attributed to an improving economy as well as the completion of its hiring of 150 additional business bankers.  Huntington claims to be on track to meet its three-year goal.

This press release follows news in recent weeks that Chase and Bank of America both met their 2010 small business lending commitments.  Wells Fargo fell short of its target, although it still grew small business lending by 15% in 2010, and reported strong growth in loan demand from small businesses in the second half of the year.

It should be noted that small business loan balances for many large banks continue to decline year-over-year, as charge-offs and paydowns outstrip origination.  However, we may be on the cusp of an inflection point , with declining charge-offs and increasing originations leading to overall growth in small business loan portfolios in the coming quarters.

The sales and marketing challenges for banks aiming to capture a share of the small business market include:

  • Positioning themselves as a financial partner to small businesses, providing both financial products and advice
  • Revisiting the small business product portfolio to ensure that it addresses the changing financial needs of small businesses
  • Developing offers and bundles to reflect banks’ renewed focus on relationship optimization
  • Ensuring that all service channels (branch, call center, Internet, mobile, social media, etc.) deliver a consistent customer experience
  • Recruiting, training and developing support tools for dedicated business bankers
  • Implementing programs and process for other branch personnel to sell to small businesses and/or refer them to business bankers