Branch Convenience Tactics
Source: Page 182, Spring 2005 CEO Strategies Report

TACTIC #1: DEPOSIT GROWTH
TACTIC #2: CORE MONEY GROWTH
TACTIC #3: RETAIN HOUSEHOLDS
TACTIC #4: LOAN GROWTH

TACTIC #1: DEPOSIT GROWTH

Target:
Low Inc. Depositors, Middle Inc. Depositors and Upscale HHs with high branch convenience scores.

Reason:
Utilize the branch as a means to generate more deposit growth.

Offers:
1) Send a letter from the manager inviting these convenient households to the branch for a 1 day CD sale (consider: Off-peak CDs and Bump rate CDs with higher minimum balance requirements).

Other:
Consider high rate checking, savings, and money markets as other cross-sale opportunities.

TACTIC #2: CORE MONEY GROWTH

Target:
Households with high branch convenience scores and no checking.

Reason:
Convenience drives checking and these households are convenient but do not have checking.

Offers¹:
1) Checking with all the great features of your product (cash incentives, etc) Paying $100 cash

¹Many financial institutions offer $100 cash for opening up a checking account.

¹Consider paying incrementally the cash offer (e.g. $25 for direct deposit, $25 for active debit card, $25 for active bill pay, $25 for competitor's old checks.

Exclude:
May want to exclude Low Inc. Depositors and Middle Inc. Depositors from checking mailing as they are not likely to switch checking accounts.

TACTIC #3: RETAIN HOUSEHOLDS

Target
Households with checking and low branch convenience scores are more likely to be dormant checking HHs.

Reason:
Convenience drives checking and these households are not convenient. Increasing channel usage will help retain these checking relationships.

Offers¹:
1) Promote bill pay
2) Promote debit card (sweepstakes or debit rewards)
3) Promote direct deposit

¹Promote to those who are not using the product / service.

TACTIC #4: LOAN GROWTH

Target:
Credit Driven, Middle Market and Upscale HHs with high branch convenience scores.

Reason:
Currently institutions have not leveraged convenience into additional loan sales.

Offers¹:
1) Send a letter from the manager inviting these convenient households to the branch for a 1 day auto loan sale.  Offer to pay $50 cash if you cannot beat their current auto payment.

¹Paying $50 cash if you cannot beat the current payment is low risk if the institution is more flexible on term which means the payment will be lower.

¹ Must be competitive on rates.  A home owner can get a "tax deductible auto" thereby lowering the effective rate / payment.

Exclude:
May want to exclude indirect households (if you are concerned about the dealer relationship).