5 Marketing Trends That Banks Can’t Ignore
Any successful financial marketer will tell you that the most important objective is to focus on customer experience across all channels with effective communication. With the increasing presence of banks in the digital medium, there is an underlying need to step up the promotions online.
Customers know the value of their information and they expect their banks to know them, reach out to them in case of queries and reward them at all the steps of their shopping journey. Credit cards, being the popular alternative, have various loyalty reward programs for the customers who use credit cards often. If the expectations are not met, they will block you and abandon the relationship with your bank – a situation no one wants.
According to 2016 state of financial marketing report, many financial marketers are not effectively utilizing and prioritizing the trends. Let’s take a look at some of the trends that will dominate the banking industry in the coming years.
Trend 1 – Embrace Insight Driven Marketing
Customer insights and data have become more important than ever. Every transaction and campaign is effectively tracked and insights are obtained. Advanced tools and technologies have been developed for all sized organizations while digital channels and the desire for customized offers make data analytics even more necessary.
Surprisingly many industries are ahead of financial services – in terms of access to more transactional, behavioral and demographic data of their customers.
Most banks follow the old school method of customer acquisition through traditional advertising and generic promotions. They lack in customer research. If banks have to sustain themselves in the digital era, they’ll have to embrace insight-driven marketing.
Trend 2 – Increased Focus on ROI
It goes without saying that ROI is the most important factor in any targeted campaign – be it online or offline. With the help of technology, the ability to measure the results has never been greater. Advanced software now looks at the customer purchase journey and determines what channels were most effective in bringing in the business.
Most financial institutions rank ‘Measuring performance and ROI’ amongst the top 5 challenges that are being faced. Marketing budgets are being cut considerably and there is an increased focus on gaining maximum ROI and plugging loopholes.
With the sophisticated tools, it has become easier for the marketers to determine which of their campaigns are running well and can take decisions based on the performance.
Trend 3 – Expanding the Use of Content Marketing
There is a considerable reduction in the number of interruptive tactics such as pop-ups and flash ads that used to dominate online advertising. Consumers have resorted to ad-blockers to remove such poorly targeted and ill-conceived campaigns. As a result, there is a greater need for relevant and interactive content marketing strategy that will deliver employing the right channels at the right time.
Content marketing involves interactive assessments, calculators and games to keep people pressing, swiping and sharing information that can be used in the sales process. However, these efforts are often buried within the huge sites and they never see the light of the day. To obtain maximum results, banks will have to invest more in content marketing efforts.
Trend 4 – Introduction of New Channels
2016 has seen an increased usage in augmented reality (AR) and virtual reality (VR) media. Though they might not be mainstream marketing channels yet, financial marketers should be aware of the advancements and should become familiar with these new technologies, while developers work on monetizing the channels.
Initial uses might revolve around advertising within apps such as a branch or ATM finder. But with time, marketers should explore options on how to leverage the technology to the fullest. These immersive experiences can give consumers reasons to interact with the bank without having to physically visit the facility.
Trend 5 – Customization and Personalization
There is a reason why banks have started offering personalized banking services. Given the focus on improved customer experience and the potential of advanced data analytics, personalized communication will get a higher priority in 2016. And the banks will reap the benefits in the form of higher response and conversion rates, brand loyalty and repeat customers, amplified reach and increased audience.
The need of the hour is custom solutions based on stand-alone situations in real time. Banks that are able to offer innovative solutions will create customer delight and generate the maximum business. Hence customization and personalization will play prominent roles in the years to come.: