Cross-selling on mobile: since some mobile users don't communicate with their bank through any other channel, you need to use personalized, customized ads to grab their attention--and video messages may be the best way to do that.

• Author: Albro, Walt

HOW DOES A BANK ENGAGE WITH AND CROSS-SELL TO MOBILE CUSTOMERS?

In the past, the bank might have used a blanket advertisement such as "Think of us when you need a home loan."But, of course, such generic messages are irrelevant--and even irritat-ing--to the majority of recipients who are not looking for a mortgage.

Banks today use customer data from their customer relationship management (CRM) system to figure out what is the "next best product" for a particular customer. Banks have an opportunity on mobile to target this customer with a relevant, customized message.

Late last year, Bank of the West, San Francisco, became one of the nation's first financial institutions to use personalized cross-sell advertisements on a mobile channel. To date, the financial institution has employed about a dozen mobile ad campaigns dealing with topics such as auto loans, home equity loans and e-statements.

The bank, however, does not refer to this approach as cross-selling. "We call it dynamic customer messaging," explains Matt Krogstad, vice president for mobile banking and payments. The bank sends out practical, personalized educational information. Many of the messages are not selling a product or service. "Once we get them engaged, it opens the door to discussions about products and services," he says.

The bank's testing suggests that offering instructional videos on a mobile channel is one of the best ways to boost engagement. Earlier this year, the bank used a mobile campaign to follow up on media stories about data compromises at several large retail stores. The mobile message encouraged users to view an existing video about digital fraud prevention. As a result, the bank saw a 10-fold increase in the video's viewership.

"We've concluded that it is absolutely a worthwhile way to engage mobile customers," says Krogstad.

Go West

Founded in 1874, Bank of the West operates a network of more than 650 retail, wealth, commercial and corporate banking locations in 21Western and Midwestern states. It has $68 billion in assets and is a subsidiary of BNP Paribas, based in France, which has a presence in 75 countries.

The bank attempts to preserve the feel of a community financial institution through relationship banking and an emphasis on quality customer service and engagement. The logo features a grizzly bear reminiscent of the image on the California state flag; this is coupled with the tag line, "Go West."

Krogstad says that the bank does not believe in...