by Ron Daly
Two plus two equals four. A negative times a positive equals a negative. Nine is equal to…eighty?
I found that hard to believe, too. But it’s all right here in this month’s Transaction News. According to the article, titled “What Banks Should Know About Consumer’s Thoughts on Reg E” (click here to read the article), only nine percent of bank customers contribute eighty percent of NSF fees.
I’ve been extolling the virtues of targeted marketing for years now. Why bother blasting? If there’s a target that’s clearly defined, aim for it. This is the perfect example of a market that’s easy for you to see and reach out to via email and calls.
17% of all households are listed as “very likely” or “extremely likely” to opt in to overdraft protection, whereas 51% of households have NO intention of opting in because they have never had overdrafts on their accounts and don’t intend to do so.
So, it seems to me there’s a little math to be done at your credit union or bank. You find out what percentage of your members has had overdrafts on their accounts. You find out which percentage had more than one. As the article says, 29% of users with previous overdrafts are likely to opt in. So that’s 29% out of that 49% you’re chasing – what about the other twenty?