Digital banking: outright boring or fun?
Well, the bank marketing strategies that make banking interesting are pioneers in digital banking.
If you’re in an identical sector, your aim can be more likely to be the flagbearer not directly. Doing so, nonetheless, requires you to create strategies that encourage people to take motion. Consumers have switched to digital banking since it offers good returns and low fees. There’s value in it for the purchasers.
Your job is to seek out progressive ways so as to add value to your users. Be it through fun online quizzes, polls, videos, or contests!
Through this blog, we’ll explore the multi-faceted digital banking– marketing ideas, strategies, and KPIs (Key Performance Indicators) with examples from towering names within the banking sector.
Ready to get to the know-how?
Key Components of a Successful Bank Marketing Strategy
Understanding the pillars of a successful bank marketing plan is not any rocket science. Eventually, it at all times boils right down to the fundamentals!
Understand Your Target Audience
Learning about your target market makes it possible to create strategies that provide you with results.
Let’s answer just a few questions below:
- Who are your goal users?
- What age range do they belong to?
- Do you might have services catering to different age groups?
- What form of communication style do they like?
The TG may differ depending on whether you might have a web-based presence. Answer the questions keeping in mind the present state of your bank.
Create a Personality For Your Bank
“Your brand isn’t what you sell; it’s the experience you deliver.”
-Tony Hsieh, Former CEO, Zappos
The quote stands true whatever the business sector. Your bank should have a novel personality to sell its services to people.
- How does the bank talk?
- Is the language quirky, formal, fun, or a combination of two?
- Who does it consult with? (This is your target market.)
- How does it view its customers?
These questions will assist you define a novel brand identity and create personality traits that users can relate to and trust.
Drive Consumer Engagement
If the strategy works, it translates to numbers.
To study your users’ likes and dislikes, just undergo the analytics of your last five posts to measure how engaged your users are. (If your bank has no digital presence, that is your alarm bell!)
Once you work out the metrics, you’ll gain higher insights into what your users find invaluable and what doesn’t work. Take the information and create strategies that work! Studying HSBC’s secret to successful marketing strategies or some other such towering giant will assist you study consumer engagement.
We have yet to get to the specifics of bank marketing strategy.
Now that we’ve the final points sorted, let’s move on to 4 marketing strategies together with case studies.
Top 4 Digital Marketing Strategies For Banks
Creating an Website positioning-friendly and mobile banking web application is step one in marketing banking services. Have you cleared the first step? If not, there’s no time higher than now!
Let’s dive deep into the 4 strategies.
- Use Gamification to Engage Customers
Gamification means incorporating game-like elements in web and mobile apps to extend customer engagement.
The banking sector has leveraged this technology to make apps more consumer-friendly. In fact, the gamification market is anticipated to be price over 30 billion dollars by 2025. studies say.
Where are you able to leverage such elements?
- Reward points,
- Weekly goals,
- Streaks,
- Weekly/monthly challenges.
Let’s see an example!
Revolut’s Cashback and Rewards on Online Purchases
In 2022, Revolut, the worldwide financial super app with over 20 million customers, launched a savvy solution to keep customers engaged.
Its “Shops” service lets users search and browse products from over a thousand leading brands, starting from Amazon and Ikea to Nike, Adidas, and other luxury brands. So if a Revolut Shops user purchases from the app and pays with their Revolut cards in full, the brand rewards them with 3% easy cashback, unlike other cashback offers that take up to a few months to credit.
When a user checks out, the cashback mechanically gets applied.
The other example is Emirates NBD.
The company made a fitness account where it gives as much as 2% interest for n variety of steps every single day.
So the more you progress, the more you earn.
While it’s quite an old campaign idea, it still works today because it pushes its consumers to remain fit and rewards them in return.
- Leverage Chatbots to Increase Customer Engagement and Educate Them
A user visits your website or calls a customer support executive because:
- They desire a solution to their query
- They need to study a recent service.
This is the most effective point of contact to have interaction well along with your customers. Use the automated voice recording to tell them a couple of recent service or the add-on advantage of availing of a service. Just a few common pointers are:
- How to make use of a feature
- How to get money
- How to open an account or start a recent service
Bank of America’s Erica
Erica, an AI-powered chatbot, handles over a billion client interactions. The bot helped nearly 32 million clients manage their financial lives. The bot,
- Gives updates,
- Shares credit reports,
- Gives details about account balance,
- Offers financial advice to clients
- Helps clients complete their transactions.
Investing in AI-powered bots won’t just make your clients completely happy but will even assist you reduce costs in the long term. If you’re struggling to seek out ways to market banking services, leverage AI bots.
- Leverage Social Media for Content Marketing
Be their partner, not a teacher.
Finance is sensitive and requires customers to pay extra attention once they avail of any services. So naturally, the banks that keep the most effective interests of their customers in mind when offering services directly translate into We care for you!
Here’s when social media fills the gap.
The generation most concerned about digital banking is millennials (79.3 percent), which makes up an enormous chunk. However, only just a few of them know the banking basics. As per a 2019 stat by Yahoo Finance, 69% of Americans don’t know the fundamentals of banking.
Barclays, UK, has done a stellar job at this.
Barclay’s “Street Talk” Campaign
Barclays, UK, launched “Street Talk” – a series where the host randomly asks people on the road what the fundamental home-buying terminologies mean.
It works since it humorously addresses the lack of information regarding banking basics amongst people (this bank marketing strategy won’t ever get old!). By the top of the video, it asks its users to Google “Barclays first-time buyer” to take them through the journey of shopping for a house.
The other side of this coin is that users know more however the banks don’t. Juni is a financial service provider for digital commerce that creatively filled this gap with its YouTube series “If banks don’t get it, get Juni!”
Figure out the needs of your target market and brainstorm ways to satisfy those as their financial partner.
Pro tip: Keep an eye fixed on the social media business trends for 2024 to remain updated and ahead of the curve.
- Reward People for Availing of Digital Banking Services
Rewarding people for digital banking is a strategic solution to encourage the adoption of digital channels and enhance customer loyalty.
You could integrate gamification here to make it more fun. JP Morgan’s One Card is a wonderful example.
JP Morgan’s Point-Based Bank Loyalty Rewards
JP Morgan, the biggest U.S. bank and a worldwide financial service provider, has a points-based bank loyalty rewards program, One Card.
It revolves around rewarding consumers with points for using the JP Morgan card. The points are easy to administer, especially for consumers who spend quite a bit using the cardboard.
Customers can use the points for travel, money credit, gift cards, or merchandise. If you’re a business, you possibly can reinvest the points into the business or reward your employees as a perk.
Now that we learn about bank marketing strategies, the following step is to implement them and then keep watch over the important thing performance indicators.
Key Performance Indicators (KPIs) for Banks
Few bankers may imagine that the holy grail of a bank marketing plan is profit or increased revenue. While true, the aspects leading up to those often get undermined.
Customers Lifetime Value (CLTV)
Customers are truth-tellers. If you’ve gained a loyal customer base along with your bank marketing strategies, it’s a solid indicator you’re getting into the best direction!
Calculating CLTV is easy: multiply customer value by the typical customer lifespan.
Cost to Acquire a Customer
Cost to amass a customer = the expenses incurred by sales and marketing teams/number of recent customers.
You could also include infrastructure and production costs for an excellent more accurate figure.
Number of Sales Leads
After revenue, the following most significant metric is the sales lead, followed by a marketing lead. Your customers may find your content invaluable, but is it leading as much as a sales lead?
In Conclusion
Use the strategies mentioned within the article as inspiration for creating digital marketing strategies. Every bank’s persona, services, and needs differ. And blindly copying competitors’ strategies will only take you up to now. If strategizing feels overwhelming, it’s at all times smart to achieve out to reputed finance marketing agencies.
At the top of the day, you wish a marketing strategy for banks that makes your customers tick and drives sales, and you must get there quickly!
Are you as much as a brand recent strategy for your bank already?
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