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How to Optimize Customer Activation + Boost Spending Rate

November 7, 2022

Accelerating Customer Retention, Time to Revenue and Program ROI.

Download the Growth and Activation Playbook

You’ve won the customer, but there’s one critical end-point of the customer acquisition cycle to remember: do they fit into your customer spending cycle?

Better yet, will that customer get monetized? Accelerating digital banking and payments account activation and funding maximizes spending rates, but business leaders need strategic plans to bring those new customers through the onboarding process. Many financial services organizations overlook the critical nurturing stages that bring customers from account creation to activation to spending.

The consequence? Costly churn and negative ROI. It’s important to know if you are gaining or losing money with each customer acquisition. All customers are not created equal, and you must have the formula to drive stickiness with the right customers. That’s why the process of getting a new registered cardholder activated, and getting to actively fund their new accounts and then transact is pivotal to your bottom line.

This is the financial account activation challenge so many financial services organizations face. We’re here to guide you through a step-by-step process called the Galileo Spending Loop. Understanding how to navigate this spending loop can help you proactively address the financial account activation challenge to boost customer retention, accelerate time to revenue, increase customer lifetime value and — most importantly — boost your program’s ROI.

Navigating the Financial Account Activation Challenge:

There are many chances for customers to drop off your radar before they even become part of your ecosystem, which is why each day of the activation cycle matters. Even small improvements in activation rates correlate to customer stickiness, improvement in customer engagement, the chance to win top-of-wallet status and generate revenue opportunities via interchange.

The fintech growth model of rushing to acquire customers without consideration for what value they present for the platform is where companies can get into a bind. Growth figures based on inactive customers can create a false sense of success and is an unsustainable way to achieve customer acquisition ROI. Instead, building a profitable program revolves around getting more customers to activate their accounts, and then keeping them engaged and transacting.

The key to overcoming the activation challenge is minimizing the friction between account creation, activation, funding, and ongoing spending. This requires 3 key areas to consider:

  1. Delivering strategies for fast, frictionless activation so you are engaging customers with the right programs at the right time.

  2. Positioning yourself in the customer spend cycle — from onboarding to activation, growth and providing value-add services, you must nurture your customers through each stage.

  3. Ensure you’re attracting the right customers from the start so your team can remain focused on those who present the most potential for account funding growth.


Of course, there are plenty of places where activation can go wrong that can have a negative impact on your active user base and overall average lifetime value. That’s where companies need actionable steps to remove friction and delays from this process.

In our new eBook, The Payments Growth and Activation Playbook, we address how business leaders can uplevel their card program strategies to improve KPIs across:

  • ROI: which strategies drive short- and long-term ROI

  • Time to revenue: which features have the biggest impact on time to revenue

  • Customer lifetime value (CLTV): who are your best customers and how to increase your lifetime value through ongoing engagement, incentivized spending and retention.

Don’t fret - this process doesn’t have to be daunting. We are your guide to make this process faster and easier. Building a solid foundation gets activation done right and helps you unlock maximum ROI with a customer acquisition strategy. Successful customer activation, incentives and engagement set the stage for monetizing every other phase of the customer lifecycle moving forward.

This playbook provides business leaders a path through the four stages of the activation challenge and the customer lifecycles, which include:

  • Onboarding: Connect the customer to their account, quickly

  • Activation: Getting customers to spend

  • Growth and Value Add: Extending customers’ buying power

  • Marketing: Keeping customers aware through an omnichannel approach

You'll receive answers to questions like:

  • What is a good customer retention rate?

  • How many monthly active users do I have?

  • How do I calculate my funding rate?

  • How do I improve my activation rate?

  • When should I put a customer activation strategy together?

Get your copy of the Growth and Activation Playbook

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