The most recent and most comprehensive research of its kind shows that banks and credit unions continue to miss opportunities to acquire and retain customers. The reason for this is a failure to establish and build relationships along key phases of the customer journey.
The research focussed on the experience of online and mobile account opening, on-boarding and up-selling.
The report finds that the consumer continues to expect an ever simpler and seamless experience. Online and mobile. Yet financial institutions are failing to meet these expectations. Unless urgent action is taken then fintech firms will increasingly eat their lunch.
Key stats from the report:
- 43% offer an entirely online account opening process
- 17% provide a mobile-specific app for account opening
- 55% have a post-account opening on-boarding process
- 22% use an ‘optimal’ 5-7 communications during the 6-months following account opening
- <50% use non-traditional channels for up-selling: e.g. social media, retargeting & mobile ads
As Jim Marous the reports co-publisher concludes: “It is clear that there is a significant gap between what the digital consumer expects and what banks and credit unions are delivering during the entire customer journey.”
The report is US-centric and I’d wager that the opportunity gap in the UK and the rest of Europe is even wider.
SaaS Churn – Part I
Patrick Campbell at ProfitWell is publishing the results of what he claims is the world’s biggest ever study into SaaS MRR Churn. MRR = Monthly Recurring Revenue. Churn = the ratio of cancelled to new accounts. Bottom-line: high churn kills startups. Key findings in this initial part: 1) Bigger MRR correlates to slightly lower churn, 2) Churn is 20-30% worse with VC funded firms compared to bootstrapped ones!, 3) Older companies correlate to less churn, 4) Higher ARPU (Average Revenue Per User) correlates to less churn.
SaaS Churn – Part II
Key findings from the second part of this mega-study: 1) The more annual contracts vs monthly, the better, 2) Higher delinquency (like credit card expiries) rates lead to much higher churn – as you’d expect, 3) The higher your growth rate, the worse churn gets. Watch out for more…
17 Email Scripts To Grow Your Business
As any half-decent marketer will tell you, email continues to be the single most powerful channel for growing your business. Groove have used email in many ways to grow their business. They share done-for-you scripts that have worked for them and may work for you. Well worth checking out…
Early Funding Example
Chris Maddox, CEO at Seneca Systems walks us through his experience with getting early funding. Chris set clear monetary goals ($0 above all) and strategic goals (value beyond just money). Demanded more than just money because there are so many investors. Built early momentum and credibility by taking small checks from the most likely sources first (friends & family, angels) before moving on to larger sources (seed funds, micro-VCs, institutional VCs). Kept paperwork light by only using SAFEs. No changes or additions to their board. No assholes. The seed process took between 2 weeks and 21 months.
Identifying a Billion Dollar Idea
The Best Startup Pitch Decks
ProductHunt have assembled 15 of the most successful pitch decks ever. Gold.
Digital Currency – The Master Plan
Brian Armstrong, co-founder and CEO at digital wallet startup, Coinbase shares his master plan. He and his co-founder are passionate about opening-up the world’s financial system. So that no one or small group of countries or companies can control it. He lays out his strategy for helping to do this.
Startup Culture Is Dead
Inc magazine interview John Battelle of NewCo on why the startup world is played out. Fortunately John has some interesting ideas on how to fix it. Hint: Startups need to differentiate by becoming vision-led. The vision needs to be based on making the world a better place in some way. Socially, culturally, whatever. Fascinating stuff.
Ad Business Models Are Dying
John Hagel argues that the ad-based business model is on its way out. The challenge is for the consumer’s attention. Relevant, personalised, time-constrained attention. Where the most craved attention is for learning. Learning about the value you have to offer.
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