Life Event Marketing Drives Sales at Banks and Credit Unions


extended-family-on-beachThe impact of life event marketing in the financial services industry has been known for years. When someone gets married, they may be looking to buy a house. When someone has a baby, they may be in the market for life insurance. When someone changes jobs, they may be thinking about rolling over their 401(k) plan. And when someone is getting into the retirement zone, lots more comes into play; retirement income, rollovers, and on and on. A recent Forrester Research study of 26,000 online households shows that consumers are 43% more likely to buy a financial product around a life event.

The whole CRM industry has promised that the data that is stored can predict a life event. If the right consumer data is gathered and the right modeling is done, it can, in fact, predict life events. But there is an easier way. Just ask your customer. They will be happy to tell you if they see a benefit in doing so. In a recent Independent Banker article, Christian Klacko, senior vice president of field operations for Cambridge, Mass.-based Micronotes Inc., a digital marketing SaaS company for financial institutions. “Ninety percent of people are willing to give their banks additional information about themselves that could be used in cross-selling.” So what benefit can you provide that will encourage your customer to tell you what life events they are facing? The promise of providing helpful information will do it.

Life events force decisions. When someone inherits money, how do they invest it? They need information to help them make those decisions. They are desperate for simple and easy to understand educational information just when they need it, at the time of the life event they are facing. And guess what? They do business with the one who provides the educational information. Home Depot is a good example. Walk down the aisle sometime and look around. Chances are you will find educational information on how to build a fence near the lumber and educational information on how to tile a floor where you buy tile. People buy from the ones who provide the educational information they need at the time they need it.