Financial institutions are dealing with some tough competition. If you want to shake things up and stand out among your competitors, you may need some newly minted marketing strategies or may need to refine your approach.
Let’s look at a few key marketing tactics that any bank, credit union, mortgage lender, or other financial institution can implement to gain a competitive advantage.
1. Crunch the Numbers with Customer Data
Financial professionals pride themselves on their ability to crunch the numbers, but when it comes to your marketing campaigns, are you leaving valuable data untapped? Your customer relationship management (CRM) platform, core system, or other databases can be gold mines for informing more strategic marketing campaigns.
For many financial institutions, a critical first step is cleaning up and consolidating your data in order to understand your customers. If you have data floating around in several places, or you know there are missing data points or inaccuracies, start by addressing those issues.
Once you have quality data, you can learn a lot about your customers, allowing you to tailor your messaging and marketing approaches to their preferences. You can also use data to find potential customers who share similarities with your existing customers. These are great individuals to target in acquisition campaigns.
2. Cash in on the Power of Personalization
Are you connecting with customers and potential customers in a personal way? Consumers today overwhelmingly prefer personalized marketing messages, whether those are delivered through direct mail, email, or any other means.
Even something as simple as including a recipient’s name can boost the impact of your message. Personalization doesn’t stop there, though. You can make even more of an impact by using customer data to tailor the content of your messages, ensuring they’re relevant to the recipient.
If a customer receives a message that is not relevant, it could lead them to feel you don’t really understand them or care. For example, someone who just took out a mortgage probably isn’t interested in refinancing a month later, so sending a postcard about refinancing their loan at this point isn’t a good move. On the other hand, inviting someone who just got married to a couples and money workshop is a timely and relevant way to connect with them, showing you understand them on a personal level.
3. Leverage Loyalty Strategies That Are Right on the Money
When you think of gaining a competitive edge, you may automatically focus on bringing in new customers, but one of the best ways to be competitive is to boost your customer retention efforts.
Around 11 percent of customers leave their bank every year. When it comes to new customers, the percentage is higher; anywhere from one in five to one in four of these customers churn during the first year. So, how can you convince these customers to stay with your institution?
The answer: targeted customer loyalty efforts. Make your customers feel special by sharing special offers and updates with them. Rewards like better interest rates, cash back, or gifts can be great ways to make your customers feel like VIPs.
4. Make Sure Branch Signage Looks Like a Million Bucks
Despite the fact that mobile banking is on the rise, the vast majority (83 percent as of 2019) of banked households still visit bank or credit union branches. Plus, you may require consumers to come to a branch for certain actions, like opening up a new account.
Whatever brings customers into your branch locations, you want to make sure your in-branch signage positively reflects your brand and makes a great first impression. The signs you display should also align with your digital marketing so you create a cohesive brand image across channels.
It’s crucial that you update signs frequently so they feel timely and relevant rather than tired or like white noise. Make sure you have a great partner to print and fulfill your visual marketing materials so they’re high quality and they always arrive on time and in great condition.
5. Find a Marketing Partner Worth Their Weight in Gold
You deserve a marketing partner who has experience in the finance sector—not one who treats your company just like any other company in any other industry. For one, financial institutions have to contend with plenty of regulations, which calls for a marketing partner who is familiar with these requirements and can help you navigate them successfully.
The financial services industry is unique, and so is your company. You shouldn’t have to go it alone when it comes to understanding your customer data and formulating effective marketing campaigns to achieve your goals.
Want to learn more about leveraging customer data to take your marketing to the next level? Check out our guide, Customer Analytics 101: How to Derive Data-Backed Insights.
