Strategy

With Savings Banks on the Decline, Is it Time for a Shift in Customer Strategy?

We've all heard it: The future of community and savings banks is at stake.

It's no secret that community banks are facing difficult times, and with the number of community FIs down 66% nationwide from just 23 years ago, something's got to give.  

One prominent Michigan-based community FI is partnering with Galapagos to meet the challenge head on with a new approach to customer strategy. Read on to understand the changes Eaton Federal Savings Bank is making to lead an industry in decline.

The Changing Basis of Customer Loyalty

Let me guess – you compete on service. The majority of community banks say they do. It makes perfect sense when 94% of customers cite excellent service as the #1 consideration in choosing their banking provider, according to our most recent Community Bank Customer Commitment and Loyalty Survey.

But do you know what comprises “Excellent customer service” in the minds of your customers?

Triple your new checking account acquisition

Off-the-shelf checking acquisition programs have been a staple in the industry for nearly 20 years. For some banks, they’ve proven successful in generating new accounts and driving fee income. But increasingly, their performance has left a lot to be desired. 

A new approach tested by Galapagos clients has delivered results far superior to those free-and-a-gift programs, with higher response rates and generating new customer relationships beyond just free checking.