First Federal Bank Lures with Giveaways

At least one bank still believes in handing out a “freebie” when customers open a checking account.

First Federal Bank of Arkansas sends direct marketing mailers to potential customers all over Northwest Arkansas once every two months. The pieces range from self-contained flyers to formal letters with inserts offering everything from luggage to an emergency toolkit for opening a “totally free” checking account.

“It’s a tried and true method of acquiring relationships,” said Scott Tennyson, executive vice president and chief retail officer for FFB.

The mailers go out six times a year and started in April 2004.

In the competitive Northwest Arkansas banking market, many banks run specials on certificates of deposit to lure customers and gain deposits.

Tennyson wouldn’t say what the response rate on FFB’s marketing is, but he did say, “Our target goals are being met.”

Research has shown that customers switch banks for three reasons, Tennyson said.

Those reasons are: moving to a new home, a major family change (such as a divorce or marriage) and because the customer is upset with their current bank. The mailers are meant to keep FFB at the top of people’s minds when one of those occurs, he said.

As for cross-selling banking services and products from the gained checking accounts, FFB has met expected ratios, he said.

FFB recently opened two new offices in the two-county market, one in Springdale and one in Centerton.

The publicly traded bank had total assets of $852.4 million as of Dec. 31, up 13.4 percent from $751.4 million a year earlier. Deposits were $613.3 million, up 5.1 percent from $583.3 million a year earlier.