Fintel Connect's recent 2025 Cost-Per-Acquisition Benchmarking Guide is great! Below are a few thoughts I pulled from it.
If you're a community bank, this provides a guide for you to both optimize your customer acquisition costs while also driving growth.
Here are the most important takeaways for your community bank:
1. Product Competitiveness Matters Most: Your product's attractiveness significantly impacts acquisition costs. Community banks with competitive rates, low fees, and compelling sign-up offers can achieve lower acquisition costs, even without massive marketing budgets.
2. Brand Recognition Affects Conversion Efficiency: Established trust in your community can lower acquisition costs. Banks with strong local awareness convert customers more efficiently and at lower costs than unknown institutions.
3. Marketing Channel Selection is Crucial: Different channels serve different purposes:
*Search advertising drives high-quality leads but at higher costs
*Affiliate marketing offers a balance of quality and reasonable costs
*Email marketing is cost-effective for reaching existing customers
4. Customer Journey Optimization: Simplifying the application process and removing friction points in your digital experience can dramatically improve conversion rates and lower acquisition costs.
Where your community bank should invest:
1. Product Enhancement: Ensure your banking products have competitive features and rates. Consider targeted promotional offers for new account openings.
2. Conversion Path Optimization: Simplify your application processes, both online and in-branch. Every abandoned application represents wasted marketing dollars.
3. Strategic Partnerships: Work with local businesses and community organizations to create referral programs that leverage existing relationships and trust.
4. Cross-Selling Strategies: Focus on increasing customer lifetime value by encouraging existing customers to adopt additional products, which is far less expensive than acquiring new customers.
Key benchmarks to consider:
1. Checking Accounts: Target CPA of $150-175 per opened account
2. Savings Accounts: Target CPA of $150-175 per funded account
3. Business Accounts: Expect higher acquisition costs ($175-200) due to more complex requirements
4. Personal Loans: Target CPA of $200-250 per funded loan
**Remember that these benchmarks assume good standing in the five key factors that influence CPA: product quality, brand recognition, marketing channel mix, conversion events, and external market conditions. If your bank needs improvement in any of these areas, you may need to adjust your target CPAs accordingly.
If you want help or a copy of the report, reach out to the team at Fintel Connect (Nicky, Alana), comment below or message me.
