Connecting, Informing, and Engaging with Activity-Based Marketing
by Ken Burns
In a recent study on Millennials, the Aimia Institute coined the term “High Volume Sensitive Consumers” for those segments across all generations most likely to permanently disengage with brands if they receive high volumes of generic communications.
Of this group, Millennials are the generation most likely (44% more likely) to permanently disengage.
Most consumers today will only engage if the content they receive by email, push or SMS, for example, is tailored to them. If it is not personalized and too frequent, they will:
- Block numbers
- Close accounts and unsubscribe from email lists
- Delete apps because of push notifications
- Unfollow brands on social channels
Clearly, it is time we buried “spray and pray” marketing and embraced “activity-based marketing.”
Activity-based marketing entails sending relevant, timely, marketing communications to a specific individual based on their personal utilization of products and services. How is this achieved? By the synchronizing core systems, consumer and mortgage loan origination systems, and third-party data.
Imagine the credit union member who opens a new account through indirect lending (purchasing a vehicle at the dealership and financed by the credit union). Now, let’s assume the member opens the required share account and checking, but no debit card, credit card, HELOC, or set-up of ACH. By synchronizing a marketing automation platform to key systems with real-time or hourly updates, we are able to trigger personalized emails, text, push notifications and direct mail directly from the appropriate staff member wishing to engage the member. Now we have the ability to offer account status updates, new account on-boarding, cross-sell offers and competitive offers like refinancing a second vehicle financed by another lender.
Intelligent marketing communication, driven by activity-based marketing will drive up pull-through rates on loan applications, increase deposit balances, and deepen overall services per household.
Sending masses of irrelevant messaging is an invitation to dilute your institutions brand and customer/member loyalty. Not to mention, significant opportunity cost, and attrition.