Eliminate Risk to Increase Product Usage

Eliminate Risk to Increase Product

Usage Among Members

Sales and marketing are two completely separate entities; sales being a medium of promotion used within our overall marketing mix. However, while you may not be a salesperson by trade, you are likely writing the copy for other mediums used in your marketing mix and likewise, should be implementing a few principles of sales into your messages. One of the most important sales principles is your ability to reduce the risk of the potential buyer.

Consumers generally do not favor risk and certainly do not want to lose something they already possess. This causes many people to hold on to products or services that are sub-par compared to what you are offering. Reducing risk is not a difficult tactic to master, but it will take some altering of your products and services where applicable.

Checking Account Risk

One of the greatest barriers to opening a new checking account is the required direct deposit. While it may sound like a simple request, you must consider the requirement from the potential accountholder’s perspective. They may have automatic bill payments being deducted from their account or outstanding payments. Many of the companies making automatic payment deductions from your account will require anywhere from 4-8 weeks before the payments are rerouted to your new account. This creates a burden for the new accountholder and presents the risk of bouncing ACH payments all over town.

To limit this risk, work into your checking account policy the ability for members to receive the benefits of your free checking for 60-90 days before they are required to set up their direct deposit. During that time frame, the member will likely begin using your products and services, set up their new automatic payments, and become familiar with your online and phone banking services. When the time comes to set up direct deposit, the risk has been completely erased.

Certificate Account Risk

If you watch the tactics of your competitors, it is likely you have noticed many implementing the step-up or bump-up certificate accounts. These special certificate accounts allow members to step-up their rate (usually one time) during their term to the new higher rate (if rates increase). This product is highly successful as it eliminates the risk of investing today and rates increasing tomorrow.

Find ways you can eliminate risk for your members when it comes to their using your products and services. The solution may be as simple as a more detailed brochure on the product or it may be more in depth and require you to alter a service such as the step-up certificate accounts.

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