Your ideal customers fit your way of banking.
What does that mean? It’s another way of saying that your bank cannot be everything to everyone.
There are a lot of potential customers but you’ve only got one bank. So it’s critically important that when you go marketing you focus on the specific ideal customer profile that best satisfies both your bank and that customer niche.
Now a lot of people will tell you that means you should focus on certain demographics, income levels or zip codes. That’s well-meaning advice but it ignores how people segment their own banking needs.
Did anyone ever come into your bank and ask to open the “Urban Millennials” account, or the “High Tax Rate and Big W-2” account or the “Adjacent Zip Code” account?
Of course not. That’s not how people shop for anything, let alone banking. They shop based on the banking they expect to do.
They ask about what’s in it for them.
They talk about transactions, balance requirements and access to other bank services. Because that’s how they expect to bank. And deposit profitability gives you the best insight into exactly who is a good fit for your bank based on those attributes.
A good match means good profitability and a happy customer. A bad match means trying to fit a square peg into a round hole.