By overlooking the power of digital tools marketing strategies can fall behind their objectives. To digitize means to rethink the whole marketing strategy, but the benefits are worth the effort.
Nobody can deny that in the world we live, technology is growing at a fast pace. This, of course, brings changes to our daily life and very often we find ourselves in the need to adapt and relearn how to do things differently than we used to. The financial industry is no exception.
Even though it’s increasingly hard to think of a time the internet was not around, some people are still skeptical towards the on-line world. Whether due to concerns on security and compliance, or simply because of a conservative mindset, history shows that in the long run the consequences of rejecting new technologies can become detrimental to competitivity.
The power of digital tools is undeniable and our marketing strategies can’t overlook this fact. Between 25 -75% of consumer decisions are influenced by digital experiences. Even though, to digitize means to rethink the whole marketing strategy, the benefits are worth the effort.
Make a friend out of data, not an enemy
One of the most daunting aspects of adopting new technologies as a part of marketing strategies is that it requires the processing of huge amounts of information. The smart way to approach this is to know what to look for. What most financial institutions think they know about their customers is not always what they should know.
Data should be utilized to contextualize, to have a better understanding of customers needs and to bring them solutions.
Customers want personalized experiences, and even when most firms already have the data they need to give this kind of service, they still struggle when they have to use it properly, for example when delivering the right offer at the right moment. In a case like this, choosing the right digital tool would be an important part of shaping an effective strategy to centralize your information by combining CRM data with data that comes from other digital platforms and make the most out of marketing analytics to reach broader audiences, cross-sell, and nurture already established relationships.
Nowadays, there are thousands of experts and tools that companies can take advantage of. Analytics are vital for financial services, whether it’s to identify the number of clicks on a website, the conversion rate or it’s ROI, this kind of data takes a certain type of reading and these tools help in interpreting it.
Do more, with less
Although our ideal is always to expand the client base, to gain new customers comes at a higher cost than to nurture the ones that exist. One of the things we attribute to the rise of new technologies is that they provide new ways to reach a wider spectrum of people without spending big budgets.
Like in any other business, financial institutions have to maximize its investments, and one way of doing it is to rethink the role marketing plays within organizations and their budgets.
Digital channels are proved to be the most effective way to solve the ongoing challenge of trying to address people from very different backgrounds without spending a fortune on billboards and TV ads. Digital space cost much less than traditional advertising. For example, social media is a great way to reach large amounts of people, at a lower cost, and in a more effective way.
Personalized conversations, not junk mail
Considering that today social media is not only the first place where people look for information, but also for solutions, it is shocking to see how many FI still have no presence in social media. Facebook, Twitter, Instagram, among others allow companies to reach and have a close contact with their clients. They enable them to know if customers have a complain about certain product or if they are satisfied with a certain service.
This poses a new dynamic between companies and clients, leaving behind one-way communication and, in some cases even starting a conversation. Since social media is especially great for feedback, an intelligent use of the tools it offers can help a company trace a clear map, and know very quickly if they are on the right path.
Platforms like Facebook enable companies to offer personalized ads based on gender, education level, workplace, location, interest and behavior. This way, ads can reach different types of individuals in ways that better fit them, and all those unnecessary emails that hardly turn into conversions can become a thing of the past. Emails should be used mainly for operations, not for marketing.
Consumers expect personalization, and they are most comfortable with providing personal data when they are able to manage and control their experiences. The goal is to fulfill their needs and expectations and not to overwhelm them with messages and offers that lead to an opposite effect. A person who earns a low salary would be more likely to be upset after receiving once again and again, an ad from the bank that encourages her to buy a BMW in flexible installments.
Marketing doesn’t only mean advertising
Helping customers with their needs is not just a matter of marketing products or services. Like many other businesses, some FIs use content marketing to provide an added value. Whether it’s a video tutorial, educational material or free advice, that useful information makes it more attractive to potential customers. That’s the kind of extra bonus that will make any FI stand out.
Understanding each type of customer and what content appeals them most, will go a long way towards personalization. Personalization is one of the major ways to improve the performance up to 30%, according to BCG.
A marketing strategy is the foundation to know how to stack up to one’s business objectives, the techniques that will be used and the resources needed. The role that digital marketing plays is still undervalued in 2018, and everything points to financial institutions continuing to do so.
This is not the first time in human history that technology reshapes the whole scenario and won’t be the last, that's why remembering what the late Charles Darwin wrote can come in handy: “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
Those that understand its importance will definitely go a long way.