Page 13 - Summer 2025-Final_Neat

provides a sense of accomplishment – “You’re 60% of the way to The next �me your bank design or moves to choose a product from a
customizing your perfect savings account!” vendor, consider the role of personaliza�on and gamifica�on play in the
• Use achievement language: Offer no�fica�ons and rewards to customer experience and engagement.
support desired behavior – “You just unlocked your first interest
boost!” Look for ways to be relevant to customers in the process of onboarding
• Let users name their account: Naming creates organiza�on and and account usage by making it feel like a collabora�ve and personalized
ownership – “Equipment Reserve Fund.”
• Link and Refer Accounts: Provide fee discounts and a�ribute
addi�ons (like free foreign ATM fees) to add or refer other accounts.

experience. Banks need tools to change customer behavior and the Ikea
Effect is a good place to start.
Allowing your customer more say in how they use the product will
produce greater cross-sell, higher balances, and more engagement. If
Performance Hack: Comple�on feels like an accomplishment. When the banks can do this successfully, they may just be able to follow the
customer’s effort is acknowledged and visible, they value the result more trajectory of Ikea itself.
and sa�sfac�on increases. Each act of customer input builds a�achment. __________________________________
The more a customer “invests” effort in setup and usage, the more loyal
they become, the longer their customer life which means the greater Chris Nichols is Director of Capital Markets at SouthState Bank, an ACB
their life�me value. Associate Member.

Introduce a “Starter Pack” Bundled Product Concept
Instead of selling single accounts, sell bundles of products such as a
transac�on account, savings account, health savings account and IRA.
Provide a base “starter bundle” and then add incen�ves to expand to
addi�onal products and services. Frame ini�al funding as part of a self-
started success journey:

• “Add a health savings account to lower your medical costs and
receive an addi�onal interest boost.”
• “Let’s get your Starter Bundle funded – choose how much to kick
things off with.”
• “Your first $1,000 deposit unlocks your first bonus milestone!

Performance Hack: Avoid making funding feel like a demand. Instead,
make it feel like the final step of something they have built themselves.

Use Post-Open Personaliza�on Nudges
A�er the account is opened, keep the IKEA momentum going:

• “Do you want to add balances above $250,000? No worries, we can
help you gain addi�onal FDIC coverage” (If you use a reciprocal
deposit program such as NBID).
• “Add a photo or emoji to personalize your account �le.”
• “Set up your ideal savings schedule – how o�en would you like to
contribute?”
• “Rename your Money Market to match your goal.”
• Customize your alerts (like below).
Performance Hack: This con�nues the illusion of co-crea�on, making the
product feel more like theirs.

Pu�ng The Ikea Effect into Ac�on

Arkansas Community Banker | 13 | SUMMER 2025