Three trends every financial services marketer needs to prepare for the future
Most financial services marketers recognize that digital channels are more effective than other more traditional means, yet they don’t find themselves to be “digital-ready,” according to new joint research by Digital Banking Report and Salesforce. The 2019 Financial Marketing Trends report also confirms these sentiments by finding that banking lags behind other industries in the deployment of modern marketing technology.
Despite the hurdles, marketers in this sector are rapidly changing course, bringing in data from multiple sources, increasingly doubling-down on personalization, and investing heavily in mobile banking solutions.
“The collaboration of data scientists, technology providers, and marketers will provide the power of immediate collection of rich data, personalization of communication, and forecasting of consumer needs that will improve the customer experience as well as the bottom line results,” wrote Owner and CEO of Digital Banking Report Jim Marous.
Here are the top three trends from the Digital Banking Report you need to understand to prepare for marketing in this ever-changing, data-rich world.
1. Data and advanced analytics are key to omni-channel engagement
Your customers reach your business through an ever-expanding landscape of channels and touchpoints. That scale may seem overwhelming, but marketers are adapting by deploying advanced analytics that can assess first-, second-, and third-party data.
“Understanding overarching trends and zeroing in on data that leads to opportunities is pivotal for creating an omni-channel marketing strategy that provides the consumer with a seamless experience,” said Lauren Whittington, marketing lead at Selah Financial Services.
Data and analytics are a trend financial institutions can’t afford to ignore. According to the report, organizations that leverage the power of big data and analytics into their operations will show productivity gains and profitability that are significantly higher than those of their peers.
Even with the upside, there are significant hurdles to overcome, including cultural shifts toward a data-driven culture. These changes aren’t easy, but they will prepare your organization to lead in the future.
2. New customer acquisition through digital channels is the highest priority
Unlike 2018, which focused on share of wallet, financial service marketing in 2019 has shifted to focus on new customer acquisition. The importance of acquiring customers increased from 30% in 2018 to 44% in 2019.
Fueling this growth is an ever-increasing emphasis on digital channels, which was up from 32% to 35%.
Not surprisingly, marketing objectives vary significantly depending on the size of the institution. Large regional banks tend to prioritize digital channels while smaller, community banks may not.
The report also found that without significant prioritization of digital channel engagement, the ability to acquire and retain an increasingly digital consumer base will be more and more difficult.
3. Personalization is key
Do you remember walking into a bank and the teller greeted you by name? It’s been a while, right?
How many of us have even set foot in a bank over the last few weeks?
This personalized interaction is now happening online, not in your bank. But, just because a consumer is opening your app and not your door, doesn’t mean he or she expect inferior service. Giving your customer hyper-relevant information is no longer optional.
According to the report, 33% of customers abandon business relationships because personalization is lacking and 73% of consumers expect specialized treatment for being a good customer.
The research suggests that consumers will turn towards brands who listen and learn from their behaviors and who create genuine relationships with them. In 2019, the consumer will control not only the journey, but the conversation.
The one theme that’s hard to ignore is the increasing emphasis on meeting the needs of the consumer on his or her terms. The great news for marketers, regardless of industry, is that the tools, data, and intelligence has come together to meet and exceed these expectations.
The question financial services marketers need to ask themselves is: Are you prepared?
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