With average customer acquisition costs in the financial sector going over USD 300, it becomes clear that the companies must look at and implement more cost-effective acquisition channels to remain competitive. CAC costs may be especially painful for payment companies providing low-margin services but still facing the same acquisition costs. Over 100 fintech companies failed in 2022 not least because of the fierce competition and customer acquisition costs.
Considering the importance of customer acquisition and retention for its clients, Velmie is the first banking software provider to introduce a referral system solution. Available in the core platform and in customer-facing white-label apps, it allows starting and managing referral programs on the go without connecting any 3rd party solution.
The system was specifically built to help product and marketing teams with the following
- Increase conversion. It was proven that referrals are more likely to convert into paying customers due to the trust factor.
- Reduce CAC costs. The referral program eliminates the need to spend on marketing and advertising, while the program incentives represent just a fraction of normal CAC costs.
- Improve CLV. According to the stats, referred clients are more likely to become repeat customers and spend more with the company over time.
“We’re in constant contact with our clients and deeply understand the problems they face scaling up their businesses. It is our priority to come up with relevant and effective solutions to help their business thrive in times of adversity,” said Velmie‘s Paul Shumsky, CMO
The referral program solution is available with the newly released mobile applications and the banking core, it was designed to be a completely all-in-one system that can be configured for different needs. With it, Velmie brings the following capabilities to its banking core
- Stunning UI. The referral program is a component of white-label applications featuring best-in-class design and interactions.
- Flexibility. A variety of settings and configurations are available to perfectly fit every business needs.
- Analytics. The system processes lots of data on customer behavior to provide useful insights and stats for product teams.
Available as self-hosted or SaaS, Velmie is the first banking system to take care not only of the fiance but other important success factors such as customer experience and customer acquisition costs.