Stop checking-account customer attrition!(marketing product from Specialty Direct Marketing Inc.) (Brief Article)

How soon does a bank need to take action in order to help retain the majority of new checking account customers? The answer is four months following the checking account open date, according to Specialty Direct Marketing Inc., of Annapolis, Md.

The company has introduced a new marketing product called DDAConnect, which is designed to slow the rate of checking-account attrition. The company says that the program can increase retention of new DDAs by 5 percent of more at the four-month anniversary of account opening. The product will also improve activation of Low-balance, Low-transaction volume and unfounded accounts, the company claims.

The marketing program is based on the assumption that rapid response and frequent customer contact early in an account relationship can mean the difference between developing a Long-haul customer and a short-term one who closes the account or Leaves it idle. Since the customers have just opened a new account, they are in a "buying mood," notes Jim Green, the company's chief operating officer. "Rapid and frequent contact helps to frame the bank in the most positive Light with new checking customers."

To maximize the flexibility and effectiveness of the program, each checking account product has a unique direct-mail letter series. The...