31% of customers who switched banks in 2022 did so when their local branch closed. This shows that when a competitor closes a branch in your market, you are presented with a golden acquisition opportunity! Use this as a chance to increase your deposit balances – raising your market share and lowering your competition’s share – and grow valuable lifetime relationships with proper new customer onboarding and intelligent cross-sell campaigns.
How can branch closures negatively effect customers?
- Poor communication
- Poor customer service
- Inadequate information
- Loss of a convenient brick and mortar option
- Risk of alienating customers
Branch closings are never good for the local customers and may leave them feeling like they aren’t valued. A poorly executed branch closing can cause customers to leave in droves. How can you use this to your advantage?
Be aggressive with marketing
- There is a whole new audience that needs your services
- Target prospects using both geographic proximity to the closing branch and demographic makeup of the prospects most likely to convert
- Utilize a multi-channel, multi-touch strategy, combining direct mail, digital marketing, and other marketing channels
Position your bank or credit union as a resource
- Offer materials such as instructions or checklists that can make it easier to change banks
- Be active and known in the market’s community
- Offer financial learning materials
If you have competing banks or credit unions closing branches in your markets, we’d love to talk to you! We’ve helped many institutions capitalize on competitor branch closing opportunities, and we’re confident we can help you. Email us today at firstname.lastname@example.org to learn more.