Pub. 7 2019 Issue 4

ISSUE 4. 2019 11 #3 – Offer an Incentive Don’t forget to make an attractive offer when promoting a checking account as this is how many financial institutions actively lure new checking customers. 4 In some cases, the offers are rich — as high as $500. Don’t let this intimidate you. The “Davids” of the banking world can go up against the “Goliaths” by relying on offers that will get noticed, even $50 to $100. Similarly, don’t discount how much of an incentive offering a free checking product can be, even if the promotion comes with stipulations such as a minimum balance or direct deposit requirement. Eighty percent of consumers are okay with institutions charging fees, so long as there are ways for them to get those fees waived. Incentives and rewards are especially important when it comes to courting younger demographics such as Millennials and Generation Z (iGen). Seventy-two percent of all consumers find reward programs valuable, but the overall perceived value and participation trends highest in ages 18–34. 5 4 13% 25% 11% 8% 8% 0% 10% 20% 30% 40% 50% Total 18-34 35-49 50-64 65+ 30% 43% 35% 24% 22% 42% 44% 44% 42% 37% 72% 87% 79% 66% 59% 0% 20% 40% 60% 80% 100% Total 18-34 35-49 50-64 65+ Somewhat valuable 6% 8% 9% 9% 9% 11% 11% 10% 14% 14% 17% 23% 80% 11% 10% 15% 16% 19% 20% 21% 22% 23% 24% 24% 30% 17% 18% 24% 25% 28% 31% 32% 32% 37% 38% 41% 53% 0% 20% 40% 60% 80% 100% Fee per debit Debit card annual fee Reward program annual fee Minimum balance $1,500 Check image fee Debit inacGvity fee Paper statement fee Special card services annual fee No check transacGons No branch acGvity Monthly direct deposit of $500 Making deposit in any amount Any very/somewhat acceptable (net) Very acceptable Somewhat acceptable Somewhat v lu ble Valuable 4 The Financial Brand, 2015 State of Bank & Credit Union Marketing, February 3, 2015 5 Synergistics Research Corporation Participation in Relationship Rewards Programs (by Age) Value of Relationship Rewards Among Non-users (by Age) “How Acceptable are Fees?”