Email Marketing and Customer Retention

For the Financial Services and Mortgage Industry


Rates and Fees Don't Win Customers

According to a Yes Marketing study, 42% of consumers report that competitive rates and fees are the most significant factors in their decisions for a NEW financial services company.   

58% are not rate or fee sensitive because of other significant factors that are important to them. 

  • 22% reported that a variety of available services is the most crucial factor
  • 10% say that the physical locations of services are essential. 

While 4% report, good customer service is essential, only 5% ask to manage services via an app.

Finally, 13% state that trust is an essential factor. 

While responses vary somewhat by the age of the respondent, the overall impact is one of a shift for the financial services and mortgage lending industry.  Marketing teams should take care to learn the strengths and weaknesses of their brands and address them head-on. 

What Mortgage Lenders, Servicers, Banking and Credit Unions can Learn?

The quick takeaways are this:

  • Diversify Services:  Since the range of services is the second-most important factor for customers of all ages, include additional services, e.g. independent bank transfer services like Zelle, Paypal, or Venmo.  Include tax-based services from Turbo Tax, integrations with Quicken, etc.
  • Show that Your Company is “Easy to Use”:  Make it convenient for customers to interact with your company.  Mortgage Lenders and Originators need to prove their worth with easy online applications: Banks and Credit Unions with online setup for accounts and easy business banking setup.
  • Be Transparent:  Data breaches, hidden fees, and scandals for monthly services from top banks lead to a feeling of general mistrust for financial services companies. Mortgage Originators and Mortgage Lenders need to display their rates and fees upfront – why? 57% of people rank this as the most critical factor contributing to trust.   User testimonials ranked 6%, if you think online reputation will save you.  Note…this is different than word of mouth, family, and friends. 

Customer Retention

Overall, customers are reluctant to change financial services companies because of the switching costs involved (time, complexity, and fees). 

While younger customers are less loyal and considering changing financial institutions (35% of 18-21-year-olds and 40% of 22-37), their financial DNA is typically less complex than their older counterparts. 12% or less of those 53+ years old are considering a move.

The study demonstrates that customer retention can be driven by custom content based on age. Customers have different goals at different stages in their financial lives.   Think in terms of guides for younger customers; it’s their first car, first home or early investments. 

Content Distribution

How is content distributed?  Email, SMS, Push Notifications, Social Media, and Display Ads.  Yes, display advertising can reinforce your brand and educate your customers.  Re-targeting a set of servicing customers for a mortgage lender or bank can set both the brand and the customer up for success. 

Unfortunately, 41% of customers say they rarely receive relevant communications from their banks or lenders, according to the study. 

Creating relevant segments and personas of your customers can begin the process of identifying relevant content.  Then, distribute the material in a manner and frequency that each group is likely to consider appropriate and timely.  

Be careful.  Generation Z (18-21 year-olds) were the most likely to state that they were over-messaged across all channels.  They received each communication type too frequently, and it negatively impacted their relationships with brands.  20%-30% of all other age groups also reported receiving communications too often for one or more channels.  

The best communication is the right message at the right time for the right person.  Make it relevant to them; it is not as hard as it sounds.   


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