These Are the Accounts You Want to Close
There’s a tactic some mega-banks use to prevent consumers from moving accounts to community banks and credit unions. There is a way your financial institution can counter this tactic.
Many accountholders dread going back to their old financial institution to close an account. It’s a personal confrontation. The teller or account manager asks embarrassing questions like, “Why are you closing this account?”
The big banks are using this embarrassment and consumers’ other emotions as a way to keep accounts open by making a counter offer. When the account manager learns the reason the customer plans to close the account, the manager offers to sweeten the deal to convince the customer to stay. (Waive fees for a certain period of time, for example.)
“Now there’s no reason to close your account and go through all that trouble of moving your transactions, redoing bill payments, etc., etc.”
The tactic works. Your own staff probably does the same. It’s easier (less confrontational, less embarrassing) for the customer to agree to keep the account open than to close it.
What do you do to counter this move? Simple. Offer to close the old account if your new customer or member hasn’t already done so. That eliminates the opportunity for a counter-offer by the other financial institution. Be sure you ADVERTISE your new service so customers know they can count on it. It’s an added incentive to switch to your financial institution.
There’s not much additional work for your staff and this is a great service for your new customers. Closing the old account prevents your competition from winning back the customer and taking away the account from you.
In most cases, you’re not only doing your new accountholder a favor, you’re really doing something good for your financial institution.