Modern Ways Banks Attract Customers To New Financial Solutions
Updated: Jan 17
Preach the value of your product and the customer will come to you; this is the conventional mindset through which traditional marketers in the financial sector used to attract customers. Having a billboard to talk about how cheap a product is and commercial portraying an optimized customer journey would be enough, but times have changed. The modern-day customers have shifted their mentality towards being attracted to more than just the price of financial solutions.
On top of getting something affordable, they want better data protection, faster service delivery, and even better customer support. With issues such as data theft and fraud turning into a regular occurrence, the need to weave these aspects into marketing strategy becomes even more apparent. Even worse, more companies are cropping up with better solutions every day, which are easily accessible.
Digitization of the financial industry does little to make the life of the traditional bank executive easier. The most successful modern bank executives view this disruption as an opportunity rather than a threat. It takes the concerted effort of the whole organization (marketing, HR, finance and analytics department, etc.) to prepare a bank for the changing landscape of the modern financial industry.
Here are some things that should be done to attract the attention of modern financial customers:
It Starts With Changing the Marketing Mentality
Sure, the time to shine might have already expired for the traditional marketing models, but the modern-day ones can't exist without these models. The 7Ps (price, product, promotion, place, people, physical and process) still play a significant role in identifying the best way to direct marketing efforts- though they were majorly used in the 1990s. On the flip side, calculating ROI and using the 4Cs (customer, convenience, communication, and cost) brings a new perspective into marketing.
Ideally, blending both the modern and traditional models should help understand more about the brand, analytics, customer insights, and customer experience. This combination also helps to identify capability gaps in the choice of marketing strategy and looking for ways to bridge the gap.
Data Should Be Treated As an Asset
Consumer and product data paints a picture of who the target consumer is. It provides details about the buyer personas in the line of what makes them tick and itch. As a result, marketing teams need to encourage improving the sources of data to make their firm more competent to provide for the market.
This goal will need them to invest in data analytics tools that can help track the customer journey. Since every detail counts, working in collaboration with the analytics team is crucial. What's even more critical is the protection of the collected data from both cybercriminals and the competition- to earn the trust of customers.
Collaboration With Bank Executives
Bank leadership often view the marketing function as merely a cost center. This perspective can accompany some form of distrust by the CEOs, especially if they fail to see a measurable return on investment. Fifty-seven percent of current CMOs have only held on to their position in the firm for three years and less, according to the Harvard Business Review research. This situation breeds a problem where top bank executives might subtly ignore great ideas from marketers.
The best way to bridge this gap of ideology is for bank marketing executives to work hand in hand with other bank executives. Bank marketing executives should turn themselves into ROI marketers seeking to provide value for each marketing dollar spent. Additionally, they should make it their goal to use cost-effective marketing methods to grab the attention of other bank executives. By understanding where the other bank executives are coming from, it will become quite easy to craft ideas into those that can rhyme with their expectations.
It Takes the Right Talent Pool
While modern marketing techniques and data-driven insight will get an organization the right customers, it takes a unique talent pool to put them into action. Everyone on a modern bank marketing team, including marketing managers, big data scientists, and the analytics team needs on the same page in regards to the bank's marketing goals and objectives.
They need to be fluent in using analytics and artificial intelligence technology to place the business favorably in the market. This means getting the right data, working on personalized financial solutions, and measuring marketing effectiveness. With a best practice strategy for modern bank marketing, identifying innovations that will make bank marketing more targeted and efficient becomes easier.
The Whole Organization Should Be Involved
Sixty-six percent of surveyed financial institutions are of the idea that having a consistent marketing message throughout the organization is pivotal for success. It can be baffling for a customer to talk to the sales team and the customer service team while receiving a different message from both. Ideally, you should ensure that all departments work in collaboration in supporting the marketing message that you create for your financial solutions.
Because it only takes one broken link to lose a customer, the marketing team should ensure that all department and outside providers are more than aware of the role they play in the marketing strategy. They should also request bank executives to provide the tools and technology to make this collaboration easier.
Disruption in the financial industry isn't going to end today, and only the most resourceful marketing teams can best place their financial solutions close enough to the consumer. It takes an overhaul from the conventional marketing mentality to remain viable in today's marketing atmosphere. The more banks can learn to change their internal and external mindset, the easier it will be to attract the right customers.