Increasing your non-interest revenues without increasing customer fees that ultimately drive customers away can be a challenge.
The digital economy is opening up new ways to drive additional revenue from existing customers. The same technical innovations are also opening up new ways to communicate with customers about both digital and traditional offerings. But that results in customers becoming overwhelmed with advertising and marketing messages. They are forced to decide upfront who is providing relevant information and who to completely ignore. Ultimately, it comes down to trust.
Customers consider generic messages to be spam and learn to filter them out, even if they come from a known vendor. Over the long run, these types of marketing campaigns not only see diminishing returns, they can even damage your long-term relationship with customers and decrease revenues.
Micro-marketing overcomes the noise that traditional spam-marketing creates and establishes news levels of trust between customers and vendors. Banks and card companies have access to a wealth of knowledge that can be used to drive such campaigns. But executing these types of campaigns at scale is impractical using traditional approaches.