Share this
by James Robert Lay on February 28, 2023
Brief Summary of Episode #276
Even after Covid, financial brands have been notoriously slow-moving in improving digital onboarding for new account holders.
Bank and credit union leaders high-five each other after hitting application quotas, but the truth is that many of those customers will be just as quick to pull the plug.
Laurie McLachlan, Chief Marketing Officer at Digital Onboarding, Inc., believes the problem is even worse than most realize.
“I can tell you with relative certainty that your online application abandonment rates are probably north of 65 percent, and I wouldn't be shocked if they were 90,” Laurie said.
So why are customers giving up on these brands before hitting “send”?
“Putting a product matrix on a website frankly doesn't cut it,” Laurie argued. “A pharmacist wouldn't put four medications in front of you with the benefits and risks and say, ‘Pick.’”
People don’t know what they don’t know. The problem is that many financial leaders think telling is the same as helping.
“Banks and credit unions need to help make that onboarding process feel mindless,” Laurie suggested. “It should feel like zero work to the new account opener.”
By helping your account holder understand your product, you can gain a customer for life.
Key Insights and Takeaways
- Why most official account abandonment numbers are fickle (6:53)
- The difference between communicating and helping (16:23)
- How referral programs help build better relationships (32:17)