With the cost of acquisition rising and fee revenue falling, the payback period for consumer banking customers has extended from 18 months to four years. This has prompted many institutions to shift their acquisition efforts to affluent customers, those with annual incomes of more than $100k, whose payback comes quicker despite a higher initial investment.
But the universe is small. According to the latest Curinos U.S. Shopper Survey, affluent segments make up about 12% of consumers looking for a new primary banking institution (see chart, left side). In addition, adopting an acquisition strategy focused on affluent consumers means competing head-to-head against the national banks and direct banks, which hold a higher proportion of this group (see chart, right side).
Here are three key considerations for institutions looking to gain share among the affluent:
- Innovate. Transform the value proposition across product, experience and operating model to stand out among affluent prospects.
- Target. Be scientific about who you target, by propensity and quality, to maximize your marketing investment.
- Personalize. Realize the full value of the customer through personalized activation and relationship deepening.
Acquisition Share and Segment Mix of 2023¹ Purchasers
(Primary Relationship)
Get access to the data that informed this article