'Onboarding' Can Strengthen New Relationships

As demonstrated by our panelists' comments, the industry has become increasingly aware of the importance of strengthening new customer relationships within the first 90 days of the account opening. A recent survey by BAI Research shows that customer attrition within the first three to six months of new checking account relationships can be up to 200% higher than annualized attrition rates.

To combat this problem, institutions are increasingly using a technique known as "onboarding," which is a structured customer orientation program. The program is supported by a series of proactive contacts with customers to ensure that the products they purchase match their needs, the rates and fees on the accounts were transparent and understood, the fulfillment process was smooth, accurate and timely, and any problems associated with the account opening process were addressed immediately.

By helping establish a "service dialogue" with customers during the first few weeks following the account opening, BAI Research has found, onboarding facilitates a true needs-based relationship, which makes this such an effective cross-selling tool.

"We suggest banks consider a structured set of at least three customer interactions within the first 90 days," says Paul McAdam, managing director of research at BAI. "This would include a 'thank you' call immediately after account opening; a fulfillment quality check a few weeks later; and a needs-based relationship expansion probe two months after account opening."

BAI Research has also found that in addition to these structured contacts, banks may need to reconfigure product packaging, sales efforts, lead management and incentive programs to optimize the performance of their onboarding programs.

For more information, please see "Ninety Days that Make or Break the Deposit Relationship" at www.bai.org/research/NinetyDays.