Published by Grace Lei on 29 Apr 2009 at 10:02 am
Good Old-Fashioned Marketing: Word of Mouth
It’s no easy task for banks to attract new customers these days, given all the negative news surrounding financial companies. Dissatisfied or nervous customers are no doubt on the lookout for a more stable - and/or a more generous - bank to move their money to. Perhaps the best way to get a new customer through the door remains the good old-fashioned referral from a trusted friend. Here, we’re seeing at least one big bank ramping up its efforts to encourage referrals.
Citibank is currently running a promotion for existing customers, offering to pay them up to $500 for five successful referrals that open up an account with the bank (see email below). Clients earn $25 for referrals that open one of the bank’s basic accounts, Citibank EZ Checking. From there, the referral reward rises based on account type. Clients can earn a nice Benjamin Franklin bill for a referral that opens a Citigold account, the firm’s premium relationship account, with $100,000 in combined balances. The new account holder also benefits from the promotion, earning the same referral reward as the person who referred them to Citi.
The promotion makes a lot of sense for Citi, which needs to acquire more deposit account assets to shore up its capital base. This generous program expires on June 30.


