The global digital advertising expenditure accounted for 18.9% of the financial industry in 2012 which is expected to reach 26.9% by 2017.
With the digital revolution, the world has changed and so has the financial industry. The customers now are more demanding, and the switching from one financial service provider to another is becoming common and easier.
Digital Marketing for Finance Industry
Financial companies are slow to adapt the Digital Marketing change. There are numerous insurance companies and banks following the set ways to do things. This is because initiating any action will require a lengthy process and more time. Therefore, many companies drop the idea of integrating Digital Marketing to their strategies. So, the current scenario is they are way behind the ones which are digitally equipped.
As the digital world is growing faster every day, new technical advancements mean that all companies that are reliant on customer retention, acquisition, and developing great customer relationships need to keep up. This is especially useful for financial institutions which are heavily dependent on retention rates and referrals.
Since the nature of financial institutions is rigid, they can be unwilling to change but the fact is that companies that adapt to these changes will thrive and those that don’t will have to fight for survival.
Importance of Digital Marketing in Finance Industry
1. Find Out Potential Customers
Undoubtedly, the availability of potential customers online is more than anywhere else. With the help of online discussions of the prospects on social media forums or network, you can know which prospects are more likely to respond or reply to your offer and then you can target them as per the data available.
2. Customer Feedback
The knowledge of what your clients think of your products and services is very crucial for surviving in the market. You can definitely take surveys but traditional marketing research is a gone thing now!
With the growth of social media, customers post numerous feedbacks, opinions, and reviews about your products and services, without even being asked to do so. Therefore, digital marketing is an important aspect in understanding the views and sentiments of your company. This data could later be used by businesses to design a new product and improve their current services.
Statistics for Digital Marketing in Finance
According to RNR market research, financial services’ worldwide digital advertising expenditure rose from $53.7 billion in 2008 to $95.7 billion in 2012, at a CAGR of 15 percent. This number is expected to reach $168.4 billion in 2017. Undoubtedly, digital has taken over marketing.
Marketers all over are facing the challenges of keeping up with the rapid pace of digital innovation and customer expectations. And then, there are players in industries that are relatively slow to change, maybe due to regulatory or institutional constraints. Financial services are one of them which have been slow to adapt the technological changes.
Here are some of the facts and figures to throw light on the status of Digital Marketing in Finance.
- According to Newscred, 76% of B2C marketers report using content marketing whereas only 37% say their strategy is effective.
What’s the loophole?
This stat illustrates that companies which are marketing directly to consumers don’t often have effective content marketing strategies. Most probably, they aren’t exploring the social media in the right way or maybe their content is being delivered at the wrong time. Be it any case, there is a huge opportunity for the finance industry to create a purpose for people to come to the site with valuable content that focuses more on the actual customer needs instead of services offered.
How to overcome?
Content marketing is the solution! Creating awesome content that will appeal your audience is the baby step in solving the content marketing problem. If you lag anywhere behind in providing good content on the internet, you aren’t going to be in 70% of sales deals.
Note: If your website design is not complementing your content then you must work on your website design too! If the content isn’t centered with sharing buttons, then people are not going to find it and share it. The layout and design of your site should be user-friendly.
- Neolane & DMA found that 60% of the marketers struggle to personalize content in real-time, yet 77% believe real-time personalization is essential.
What’s the loophole?
There are many financial companies which are unaware of the importance of personalization. The customers today are looking for organizations that could be trusted and understand them with best interests in mind. When organizations can add a personal touch to their customer engagements, they will have more success to keep loyal clients. But financial organizations are not implementing personalization because marketing isn’t getting the buy-in they need from executives. Since everything in the finance industry is excessively regulated, finding the right solutions and technologies to conduct personalization is a challenging and expensive process.
How to overcome this problem?
To have a compliant and secure personalization, the financial company need to know how they can integrate customer data with systems. For this, a digital experience platform could be used that can simplify integration via secure connectors and proven APIs.
The easier connection between personalization tools and customer data enable financial services marketers to quickly launch personalized campaigns. Once the right tools have been put in place, marketers can focus on how to achieve their content marketing strategy by delivering personalized content at the right time and the right place.
- Aberdeen Group reported companies with a strong Omni-channel customer engagement retain on average of 89% of their customers, compared to 33% for companies with weak Omni-channel customer engagement.
What’s the loophole?
Execution of Omnichannel marketing across mobile and desktop is one of the most crucial things that finance industry is looking to do today. For instance, if visitors aren’t able to access their information on any device whenever they wish to that bank could lose business. Websites absolutely have to be responsive or mobile optimized. Alongside, the banks are facing problems in effective implementation.
How to overcome the problem?
Finance industry could look forward to a cloud-based solution that would help users experience a smooth functioning across all devices and enables marketing or IT teams to add content quicker and make updates more effectively responsive design functionality.
The problem digital marketers in financial services companies are having isn’t whether or not they have the ability to adapt to trends, but rather how quickly they can adapt these trends. If things aren’t done carefully and securely, then they could lose the trust of their customers.
Digital Marketing Trends for Finance Industry
The importance of Digital Marketing is rising in the financial services industry and is bound to rise. In the past, the finance industry has been painfully slow in adapting to the changes of digital marketing. But with clients moving to online platforms to cater their needs of banking and finance, many finance companies are now changing their online behavior.
The following digital marketing trends area shaping the finance industry:
1. A Strong Online Presence
An engaging and consistent social conversation can help elevate the customer experience. For that, you need to get your basics right. There should be a clear approach to digital experience online. They should take advantage of data insights to enable real-time contextual relevancy, accelerate the customer journey, and contribute to the community. Social media is one the best places to connect with audiences in new, educational, and personalized ways.
2. Understanding of Regulations
Finance, being one of the most regulated industries in the world, the digitization can pose risks in terms of legal threats and data security. Therefore, it is important for banks to set up teams to keep informed on policies and use the channels wisely to minimize risks. For instance, finance industries can use these channels exclusively for managing social media, customer queries compliantly alongside resolving issues on social media platforms and building genuine engagement.
The only way is to look ahead to technology advances and future innovations to strengthen security and regulation compliance digitally.
3. Time for Customer Personalization
In order to be ‘front of mind’ with customers, the finance industry is avoiding the impersonal feel and the approach is to have a friendlier connect with their customers via social media. Banks and finance companies can use digital data to monitor clients and market trends to provide personalized, value-driven, and tailored customer services to each individual client.
Here’s How Social Media Helps Banking Sector in Acquiring Customers:
Adopting such a measure helps the finance industry to listen to their audience and engage with them in meaningful two-way conversations.
4. Mobile loving apps
To stand out, transforming a customer experience online will be the guiding force. The tremendous growth in mobile use and the accessibility of social media via smartphones are providing banks and other financial services with an opportunity to connect with their clients.
Therefore, if you are belonging to finance industry and still haven’t invested in mobile friendly apps, then start doing! This will make it easy for clients to conduct banking transactions without any hassle.
Interested in exploring the opportunities in Mobile App world? Learn Mobile App Marketing.
These key Digital Marketing Trends will help finance industry with a continuous rollout of mobile technologies to create deeper, interactive, and real-world engagement with clients.
Strategies for Digital Marketing in Finance Industry
1. Customer Retention is the Key
Interaction with a customer has the potential to be either an opportunity for you to earn customer loyalty or your competition to sneak in and capture customer’s interest.
The Accenture Global Consumer Pulse Research (July 2015) reported that customers are buying more products and services from financial companies but not essentially from their current providers. 39% of the consumers cite competitive pricing, 34% of quality customer service, and 32% of the customers quoted good value for their money as the key drivers behind switching to another financial institution.
A solution suggested by Accenture report:
“For banks considering the question of how to keep their customers from switching to other providers, we found that first-contact resolution is the key. Of the consumers who switched to another provider due to poor service, more than 80 percent said they could have been retained if their issue had been resolved on their first contact with the bank.”
In conclusion, the finance industry has to take the lead to earn and retain customer loyalty. To do that, they need to give excellent service, for instance, prompt resolution of any issues, along with substantial value.
This definitely doesn’t imply that your products have to be cheaper than your competitors. But it means that your clients should have the feel that they are getting a lot of other benefits out of their relationship with you when compared with competitors.
2. Content Marketing to Fuel Finance Industry
Since content is the primary driver of basically everything around us, content marketing is one of the easiest ways for the finance industry to deliver more value to consumers.
According to Financial Content Marketing: The State of Play, 2015 Benchmarks, Budgets, Trends, a report from Dianomi, less than 2% of financial services companies deemed their content marketing efforts highly effective, but 90% saw content marketing as an important area of growth for the following 12 months.
Important note: Content marketing in the financial services sector doesn’t mean sales. In fact, only 13% of survey respondents reported sales as a focus of their content marketing efforts. “Rather, financial services companies are taking a more wide-ranging approach: the most common objectives are brand awareness and thought leadership, both cited by 71% of those polled. Customer retention/loyalty was a close third, cited by 69%.”
3. Online Video is Taking Over
After Google, YouTube is the second largest search engine and accounts for 50% of the internet traffic. 46% of the consumers are more likely to investigate a product/service after seeing an online video. This implies online video is effective today!
Online video is gaining the popularity in the financial digital marketing strategies in the last few years; however, there is a problem. Many financial services companies are making the mistake of using YouTube the same way they use TV for advertisement i.e. they interrupt consumers rather than attract them. The finance industry can adopt high volume, low production cost video that can significantly boost a firm’s social marketing success. Given the fact that online video is effective and searchable, therefore, with the right video content, firms can leverage their marketing analytics to target the right customers with the right video message.
The finance industry can adopt high volume, low production cost video that can significantly boost a firm’s social marketing success. Given the fact that online video is effective and searchable, therefore, with the right video content, firms can leverage their marketing analytics to target the right customers with the right video message.
Case Study for Digital Marketing in Finance Industry
Let’s understand the challenges faced by finance industry and strategies to overcome these challenges with the help of live examples!
1. Understanding YES Bank’s Social Media Strategy
About YES Bank
Founded in the year 2003 by Rana Kapoor and Ashok Kapur, YES Bank Limited (YBL) is India’s 5th largest private sector bank. The bank is ‘India’s Fastest Growing Commercial Bank’ that provides complete banking experience via an extensive network of more than 860 branches PAN India, over 1625 ATMs across India.
Objective of YES Bank
With an aim to offer a superior customer experience to its retail, corporate, and emerging corporate banking clients, YES Bank has adopted a knowledge driven approach to banking and finance.
YES Bank tied up with BCCI (Board of Cricket Control In India), it became the associate sponsors of India’s biggest Sport entertainment event – Indian Premier League (IPL). In order to engage with their existing clients along with acquiring new customers, a lot of branch level activities were organized.
Strategies Adopted by YES Bank – Social Media Strategies
Soon after becoming an official partner to IPL, YES Bank has gained immense popularity and visibility among Indian audience. Every year, during IPL, YES Bank initiated contest called #YESBankMaximum. This campaign is driven by a microsite with the same name requests a user to log in via Facebook and Twitter for a better experience.
#YESTAG (Social Banking app)
YES TAG App promises to make banking faster and more convenient, with YES TAG a customer can avail various banking transactions from 5 different Chat applications – Twitter, Facebook Messenger, WeChat, Telegram, and Skype.
In order to optimize productivity at YES BANK offices, YES BANK has partnered with ‘Facebook at Work’ & has introduced a unique Facebook platform for its 15,000+ employees.
Though YES Bank was a little late to adopt digital marketing strategies but ever since it has joined the digital revolution, the bank has made a unique place for itself in the minds of consumers via its Digital Ecosystem.
Yes Bank (@yesbank) today is the most followed bank in the world, they have over million followers on Twitter and on Facebook also they have over 4,232,935 Fans.
The launch of #YESTag and launch of #IndiaboleYES brand campaign on Twitter ensures that Yes Bank is pretty serious about its Social Media future.
Read the full case study here.
2. Why is HDFC Bank No. 1 Among Indian Banks?
About HDFC Bank
Headquartered in Mumbai, Maharashtra, HDFC Bank is an Indian banking and financial services company. It has a presence in Dubai, Hong Kong, and Bahrain. It is one of the largest private banks in India in terms of its assets.
It is the largest bank in India by market capitalization as of February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global Brands.
The business objective of HDFC Bank was to stand out as far as leveraging social media is concerned in terms of engaging their clients and number of channels being used.
Social Media Strategies of HDFC Bank
Here are few of the social media strategies adopted by HDFC Bank in order to stand out of the rest:
1. HDFC Facebook Page
The facebook page of HDFC generates admirable feedback from users which helps them to understand their fans as well as their banking products. They have a money matters section to provide interesting recent financial news of interest.
2. HDFC Twitter
The approach of HDFC on Twitter is to build upon by sharing relevant and interesting information with their followers and asking them interesting puzzles, sharing new deals and products etc.
Read the full case study of HDFC’s success here.
Events for Digital Marketing in Finance
Here are some of the Digital Marketing events and summits for finance that are upcoming.
1. Digital Marketing for Financial Services Summit
The 3rd annual summit for digital marketing in finance is happening on 15th-16th November 2016 in New York at Wyndham New Yorker. Topics like “The State of Marketing in 2020 – Become a Future Leader in Financial Services”, “Balance Digital and Bricks-and-Mortar Banking to Deliver the Optimal Customer Experience” etc will be discussed in the event.
— DMFinancialServ (@DMFinancialServ) October 5, 2016
2. Digital Marketing for Financial Services Summit
Another event for Digital Marketing for Finance is the 6th annual event happening. This is one of the largest gatherings of financial digital marketing in Canada. The event is exclusively designed to give Finance Industry the tools to build their business and elevate their digital marketing strategies.
This will take place in Toronto, ON. You can attend this event on May 31st and June 1st, 2017.
3. Winning Digital Marketing Financial Services Conference
Organized by Global Insight Conferences Ltd, the winning digital marketing financial services conference is a one-day event happening on the 21st march 2017 in London. The conference will witness senior-level delegates from the biggest financial service organizations.
How Social Media Can Benefit Chartered Accountants and Others:
The major driver of Finance Industry is retention of customers. Therefore, if you have the resources and opportunity to assist your customers with digital benefits, then you must! Are you still ambiguous on how to boost your ROI with Digital Marketing? Learn digital marketing to offer the best financial services.
Image Credits: sospm.in, entrepreneur.com, flint-group.com