Free and all-you-can-eat used to be the two most powerful marketing terms in the world. Have a free picnic in the park and people from all areas of town will show up. For years financial institutions only offered free checking accounts. In fact many institutions continue offering a no frills, no fee account that people still like.
But many consumers are willing to pay a small fee for their checking account IF they receive services that have a perceived value that exceeds the monthly fee. Independent studies show that over 70% of consumers want Identity Theft Protection with credit monitoring on their account. They also want credit score reporting and certainly everyone wants/needs cell phone protection for a broken or stolen phone.
Value Checking is a unique concept that provides services that consumers want and need and they are willing to pay for them. Large institutions charge $6-$12 per month for a checking account and some will let you reduce the fee by accepting e-statements, doing a certain number of debit card transactions, or directly depositing your payroll into your checking account. Other banks and credit unions pay interest on the checking account for doing these same things.
1) Offer a no frills, no fee checking account for those consumers who only want a bare minimum account.
2) Add benefits to all of your other accounts and charge a small monthly fee that is less than the value of the services.
This strategy is currently working at over 700 financial institutions on nearly 10,000,000 checking accounts. Customer loyalty and fee income will go up at the same time. Contact Strunk today to learn more!