Traditional marketing no longer cuts it in the financial services arena today. Customers increasingly want the brands they trust to interact with them in personal ways, and that includes their financial service institutions. Banks need to make full use of their CRM data in order to deliver that personalization and remain competitive.
Use Personalization to Give Your Competitors a Run for Their Money
The financial services industry has become increasingly diversified, making the competition fierce. Banks are now having to compete not only with other banks and credit unions but also with tech companies that are entering the financial space. Personalization is a major way that banks can remain competitive in this new landscape.
Consumers have come to expect personalized experiences from the brands they do business with, and that now includes financial institutions. In fact, 72 percent of customers rate personalization as “highly important” in financial services, yet this is an area where many banks are lagging behind, revealing an opportunity for growth.
Get Your Accounts in Order: Cleaning Up Your Customer Data
Personalization depends on data. And before you can really start using your data for personalization, you may have to do a bit of upfront work (or find a marketing partner to do this heavy lifting for you).
You may need to:
- Consolidate data: Does your customer data lack transparency? Banks often have fragmented databases, which complicates things and makes it hard to create 360-degree customer profiles. Bring your data together in one place to ensure you have a single view of each customer.
- Ensure data quality: You should also ensure you’re tracking the right data points and that these data points are accurate and up-to-date. Old or partial data could steer you in the wrong direction.
- Interpret data: A giant spreadsheet can be overwhelming and not all that useful. Turn your raw data into practical insights by using tools like customer personas and charts or graphs to make sense of it.
- Protect data: Another important consideration for banks is complying with relevant data protection regulations. As you collect, store, share, and use data, you must be careful to do so in a way that’s compliant. A marketing partner who understands these personally identifiable information (PII) regulations is a major asset.
Don’t Leave Data in the Vault: Turning CRM Data into Personalized Financial Services Marketing
Once you have solid data to go off of, it’s time to deploy this data for more customized communications and marketing campaigns. Try these proven personalization tactics.
Customize and unify the experience across channels.
People can interact with your financial institution in various ways, including in person, over the phone, through a mobile app, or on your website. Wherever they are, ensure that they enjoy an experience that’s tailored to them personally. Every interaction should serve to strengthen your relationship with the customer and increase brand affinity.
The experiences customers have with their financial institution should also feel consistent, no matter where they’re taking place. In a recent EY survey, more than 86 percent of respondents rated the ability to provide seamless cross-channel experiences as important for their primary financial institution.
Make relevant recommendations.
Rather than sending out generic messages to all your customers, take advantage of your data to offer specific recommendations to each customer. This can be a more effective way to cross-sell and upsell other financial products and services and share relevant information.
For example, if you know a customer is shopping for a home, why not send them a guide to house-hunting and mortgages? For customers in their prime earning years, why not recommend opening up an individual retirement account (IRA)? Personalized recommendations drive home the feeling for the customer that you know them and understand their needs.
Encourage loyalty with personalized rewards.
Loyalty programs are a great way to keep your customers engaged, and they’re not only made for retail brands. Banks can also keep customers engaged with offers, updates, and special privileges that are personalized to them.
Loyalty programs can easily fall flat, though, if you don’t get at the heart of what really means something to your customers. A marketing partner who specializes in loyalty programs can help you craft a loyalty program based on your customer data so it’s actually effective at helping you engage and retain your customers.
It’s Time to Put the Personal Back in Personal Financial Services
Your bank’s CRM data is extremely valuable when it comes to enhancing your messaging and marketing campaigns. Your customer data allows you to treat customers as individuals, and as a result, enjoy stronger customer relationships.
Join forces with a marketing partner who has expertise in the financial space so you can implement these bank marketing strategies effectively and benefit from expert guidance and useful resources.
If you want to learn more about personalized marketing—specifically personalized direct mail—check out our eBook, The Customer Experience Just Got More Personal!
