How Referrals Boost Bank Marketing

Curtis Williams
October 18, 2011 — 1,638 views  
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Financial institutions such as credit unions and banks use bank marketing strategies that employ the use of marketing gifts as a main component. This is because of the increased competition in the industry at present. Bank marketing programs are being implemented now to attract new clients, keep current clients, and persuade these current clients to take advantage of more products and services.

You can make this happen because of referrals when you provide marketing gifts to your existing clients. Both the bank and the client will enjoy long-term benefits from bank marketing programs. This gives the bank the new business while letting the customers take advantage of the program's perks and benefits. Banks cannot survive if their client list doesn't grow. That's why referrals are probably the best result that you can get from marketing strategies.

New Customers

Every business in existence, no matter which industry they are in, gains new customers through word of mouth, and banks are no different. When your bank marketing strategies and marketing gifts have created happy customers, it is a natural progression that these customers will speak highly of your products and services to their friends and families. As far as ROI is concerned, there is no more cost-effective way to enhance the bottom line.

Maximizing Your Referrals

You can begin by bringing out your creativity and offering marketing rewards or gifts as bonus for customers who refer people. Individuals are always happy to refer their friends and family to anything positive, and more so if they are recognized and rewarded for doing this. You can offer anything including gift certificates, service discounts or even cash rewards depending on the profit you gained from the new client as bank marketing incentives for referrals. Offering marketing gifts as a reward for giving referrals makes use of your inherent desire to help others, which is a good thing about this program.

It is just as important to make sure that what you are offering will be appreciated. Rewarding a person for referrals with a subpar perk will not result in further referrals. Bank marketing referral rewards can be a gift card to a local retailer or restaurant, or even tickets to a local theatre or comedy club. In general, a cash gift is a bit less memorable than a gift card or certificate of some sort, but people undoubtedly appreciate cash as well.

What you can do

Carefully review your existing bank marketing and marketing gifts and how it relates to a referral strategy. Look at the methods you use to win referrals. Check to see if your efforts are enough. Find out who you can get in touch with to help you in carrying out an incentive program to increase referrals. If you incorporate a referral program in your bank marketing program, you will save a lot of time and money. Most businesses in the industry are doing it, so you have to take action now if you don't want to be left behind.

When you create a steady flow of leads from word of mouth, you can in turn get a steady stream of paying clients. Even if marketing gifts cost a little more than the usual cold call or direct mail marketing strategies, the benefits to be enjoyed are far greater. If you obtained a client though positive referral from another client, be assured that they will be retained for a longer period of time than those that you won through other ways.


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Curtis Williams

Our writers have experience with incentive marketing, and focus on helping many organizations grow their businesses by taking advantage of this. Get in touch with us now for more information about how bank marketing can benefit your business.