Drew McLellan posted an informative and funny article at IowaBiz.com this week. He told the story of receiving a postcard in the mail inviting him to switch his bank accounts to a new bank. In return, the new bank would give him a free coffee pot. 
Insert laughter here.
Now, there was a time, some 30+ years ago when offering a free gift to open an account at a bank was the norm. In fact, customers were thrilled to receive a new toaster or other small item in exchange for their banking business. However, those days are long gone.
Customers are smarter and banking is more complicated. As Drew points out in his post, changing bank accounts has a domino effect that touches many aspects of life from paycheck direct deposits, to automatic bill payments, and more. Incenting a customer to switch bank accounts takes a lot more than a coffee pot.
Drew draws the conclusion that marketers must ensure their incentive items match the pain of becoming your customer. I'll add that the perceived value of that incentive item needs to match not only the pain of becoming your customer but also the value you bring to the business. An incentive item used appropriately will let your customer know how much you value their business. An inappropriately used incentive can insult your customers and drive them directly to your competition.
What do you think? Would you change your bank account to a new bank for a coffee pot?
Comment Preview