The market for financial products is more crowded now than ever, making it challenging to capture new customers and meet performance goals. Many financial institutions (FIs) are offering increasingly generous, eye-catching rewards promotions, as evidenced by the $22.6 billion issuers spent on credit card rewards in 2016.

As banks invest heavily and compete fiercely to acquire customers and create enduring relationships, they also must carefully develop strategies to acquire the right customers – that is, build the relationships that will add the most value in the long-term. However, this is often easier said than done, as FIs face several key challenges in customer acquisition.