An Overlooked Market Segment with Great Potential
by Joe Swatek
I came across an article about business-to-business marketing that went on and on about marketing analytics, advisory boards, pricing strategies, and coordinating all the various advertising media.
Wow. I got tired just reading it. Luckily for financial institutions that want to improve their business account openings, there’s a much easier way.
Maybe you’re thinking, “Why should I care about opening business accounts when there are so many more individual account prospects?” Well, here are a few reasons…
- Small business deposit and loan amounts are typically 10 times or more greater than those of individual accounts.
- During the first quarter of 2012, retail checking balances averaged $3,157, while non-interest business checking balances averaged $21,292.(Kafakian Group statistics)
- No other segment offers as many financial cross-sell opportunities.
- Capturing the “total” business (owner and employees) can increase potential business-only revenues by 100%.
- More than 60% of small businesses are non-borrowers, so financial institutions can focus on higher return fees these relationships offer.