5 Marketing Strategy Tips to Help Financial Institutions Grow
In a recent survey conducted by PYMNTS.com, nearly 30 percent of banking consumers would be interested in switching to financial institutions that offered better mobile credit and debit card apps. In this digital age, bank and credit union marketing strategies must take into consideration new avenues of outreach to attract new consumers. By leveraging digital tools, financial institutions have a better chance of not just growing their user base, but also maintaining engagement from these users. From personalized consumer experiences to enhanced data security, here are five marketing strategy tips to help financial institutions grow.
1. Aim for Personalization
The management consulting firm BCG estimates that for every $100 billion in assets that a bank has, it can achieve as much as $300 million in revenue growth by personalizing its user interactions. From tailoring landing page experiences for different user segments to customizing messaging using data collected from previous interactions and browsing history, personalization in banking is a novel way to ramp up user acquisition. With a tool like Lumin Digital, banks can deliver customized banking experiences powered by user data and predictive analytics. By exploring the habits and interests of a specific demographic, for instance, banks can expect to gain similar consumers in that demographic by speaking to their specific needs. Once new consumers are acquired, the personalization of the tool keeps them engaged as the technology evolves according to a user’s habits, providing customized spending insights, relevant financial wellness tips, and actionable alerts.
2. Get Social
While user acquisition for financial organizations traditionally relied on referrals from family and friends, digital strategies are now highly influential, especially social media marketing. Figuring out how much credit unions and banks should spend on social media per year will vary across the board, but the good news is this: user acquisition costs through social media are lower than traditional advertising marketing campaigns. From direct ads on social media platforms to referrals who post positively about their experience with a bank or credit union, social media marketing drives user acquisition through greater visibility. After all, a local search study determined that 53 percent of users typically visit a business within 48 hours of search. Beyond ads, which cost money, and reviews, which are outside a bank’s control, posting regularly to social media profiles and sharing high-quality industry content keeps users engaged and turns browsers into banking consumers.
3. Respond to Online Reviews
Offering users incentives for leaving reviews and hoping for the best isn’t the only thing a financial institution can do when it comes to online reviews. With 84 percent of people trusting online reviews just as much as personal recommendations, it’s crucial that banks and credit unions find effective ways of using online reviews to their advantage. One obvious way is to respond to online reviews, both the good and the bad. When responding to a negative review, financial institutions should thank the reviewer for their feedback, sympathize, and then make things right. If the damage has already been done, it may be enough to share any changes or improvements that may have come as a result of their feedback. And, most importantly, unhappy users should be invited to come back. Even if they don’t, other potential users will likely appreciate the care and concern in the well-crafted response.
4. Engage User Feedback
Online reviews shouldn’t be the only available source of consumer feedback. Lumin Digital uses advanced tools to gather real-time feedback from consumers across various touch points — mobile, web and onsite. This data doesn’t just allow financial institutions to resolve pain points for current users, it also allows them to attract new users by catching issues before they escalate and serving up a better user experience altogether.
5. Enhance Data Security
Research shows that security is the top factor consumers consider when choosing a financial institution. By using digital tools to closely monitor consumer behavior and detect fraud, financial institutions solidify trust with current and potential consumers alike. Lumin Digital uses cloud-native technology to detect suspicious behavior and strong encryption to keep stored data safe. Trust needs to be a cornerstone of the relationship between a user and their financial institution in order to explore and adopt their full range of services. Assure new users that you have the resources to keep their data — not to mention, their money — safe and secure, and earn their trust as well as their loyalty.
Learn more about how digital tools from Lumin Digital can help your financial institution grow.
Erica Garza is an author and essayist from Los Angeles. Her writing has appeared in TIME, Health, Glamour, Good Housekeeping, Women’s Health, and VICE.