Pub. 6 2017 Issue 3

April/May 2017 21 L E A D I N G A D V O C A T E F O R T H E B A N K I N G I N D U S T R Y I N K A N S A S 866.440.6515 | www.bokfinancial.com/assetliability Securities, insurance and advisory services offered by BOK Financial Securities, Inc., member FINRA/SIPC and a subsidiary of BOK Financial Corporation. Some services offered through our affiliate, Institutional Investments, Bank of Oklahoma which operates as a separately identifiable trading department of BOKF, NA. NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE Your asset/liability model is crucial to the success of your financial institution and its ability to help customers. Let us conduct a review of your model to evaluate its interest rate risk and assess its accuracy to ensure that it’s a reliable resource. From there, we can provide you with helpful suggestions aimed at mitigating risk and increasing profitability. Let us be your partner for success. Is Your Asset/Liability Model Leaving You Open To Risk? requirements for food and clothing, the need is already there. Bankers can’t create similar needs. However, we can identify people who are likely to need new core relationships or those seeking a new primary financial institution (PFI). Banking customers become better prospects for your institution when they go through life-changing events — when they move, get married, or change jobs — but it’s difficult to be in front of them at the right time. You can purchase highly targeted contact lists for these events, but once prospects are on a list it’s usually too late. An even larger prospect group consists of individuals who are dissatisfied with their current PFI. Yet how can you find those prospects who would consider your financial institution convenient? The simple answer: The right type of data. Begin by modeling your current customers as a starting point for your branch-convenience footprint. If the prospect group is too large, fine-tune by adding characteristics of current customers to the targeting model. Most current-customer attributes are more reliable than purchased demographics. Add more (big) data to enhance your best-prospect model. Suppose you could determine which of your branches is convenient for prospects by overlaying their cell phone usage and GPS data? With the prevalence of mobile devises, this has become a very predictive indicator and a great real-world example of big data applications. Lastly, don’t wait until after the prospect’s life event has happened. Limit your prospect audience by fine-tuning the model while you increase your contacts with these quality prospects. Then you’re likely in front of them BEFORE a trigger event that prompts them to seek a new primary financial institution. Product isn’t marketing’s silver bullet For core customer acquisition we seek the single product that answers our growth goals. There isn’t one. While your product is important, it’s only a single component of your entire activity system. With product, you must consider characteristics like simplicity, customer advantages, ease of sale, profitability, and many others. Ignore any of these factors and growth becomes more difficult or even impossible. A good product may have a variety of different looks if it follows the activity system components outlined above. Bottom line — consider the little things that make growth happen. They are the important glue that hold your activity system together and make it successful. Achim Griesel is president at Haberfeld Associates, a customer acquisition marketing and profitability consultant for community-based financial institutions. He can be reached at achim@haberfeld.com .