When honeybees discover a new source of nectar, they perform a mid-air dance, notifying other workers of the location. This performance spreads the message to all other bees in the area, proving that Mother Nature is a marketing genius.
And while you’re not a bee, you can implement a similar strategy at your institution that encourages current account holders to refer their friends and family (without performing a mid-air dance).
Recent research shows that Millennials are constantly on the move, which means they’re switching accounts, as well. Nearly one in five Millennials has changed financial institutions in the last 12 months, as opposed to just one in ten 35-54 year olds.
With 83 million Millennials in the U.S. alone, this behavior represents an opportunity for you to provide them with what they’re looking for in a new financial institution.
So how do you motivate satisfied customers or members to spread the message to their friends and family who are looking to switch?
Incentivize them with rewards they actually want.
Turning your fans into brand advocates
Customers talk about their experience — positive and negative. This is ideal for you, due to the exceptional customer service you deliver each day. However, there’s a crucial next step: making it easy for account holders to promote your institution on their social networks. At least 75 percent of Millennials have a profile on at least one social networking site, and most Millennials—91 percent—report that they trust their friends for product and service recommendations.
When your account holders are asked, “Where do you bank?” the name of your institution should be at the tips of their tongues.
Some institutions have succeeded with programs that rely on physical paperwork trails and incentivize account holders with door prizes. These can work well but demand constant maintenance by staff, especially to prevent unqualified reward payouts.
Other institutions encourage referrals through online channels, including social media. This greatly expands their reach and taps into a current trend: 70% of people who purchased a product in the last three months say that a friend or family member suggested it online. Millennials, in particular, believe that other consumers care more about their opinions than companies do, so they post their opinions online where anyone can access them.
What’s missing from these existing approaches? A comprehensive process that:
- Allows account holders to quickly and easily share your institution
- Simplifies account opening for new members
- Verifies unique account information
- Monitors account holder qualification status
- Automatically sends the referral bonus to the new and referring account holder
A superhighway for refer-a-friend traffic
Organic account holder growth via word-of-mouth marketing can make a huge difference in your profitability; it’s low cost and attracts loyal account holders.
According to a study in 2014, 44% of people look first to friends, family, and coworkers when switching to a new financial institution.
In order to enhance this type of growth for institutions like yours, we launched Share Kasasa™, an automated, gamer-resistant program that incentivizes your biggest fans to promote your institution by giving them the rewards they crave. Account holders can easily refer their friends via Facebook, Twitter, and email — and get rewarded for doing so.
The system automatically matches referrers with referrals to deliver rewards in the form of gift cards. Gift card delivery is triggered once a referral opens a new account and qualifies for their monthly Kasasa rewards.
Share Kasasa helps spread the message about your institution and the rewards of holding a free Kasasa checking account — all without hiring extra staff, filing tedious paperwork, or finding closet space for toasters. It is also gamer resistant, allowing financial institutions to have larger, engaging rewards, as Share Kasasa allows bonuses only for consumers who become real, active account holders. It turns an institution’s current customers into brand advocates, allowing the institution to acquire quality accounts at a low cost.
Discover how Share Kasasa can add more account holders with a socially charged refer-a-friend program.