April 15, 2015
How Digital Marketing is Shaping the Financial Services Industry
When we talk about financial services, the fundamental purpose is about one thing: the management and movement of money. And as digital marketers, how do we reach this industry’s consumers whose behaviors seem to fluctuate as fast as the stock market? Well when we travel to NetFinance –one of largest digital marketing conferences for financial services—we’ll be consumed in this exact topic.
If there was any doubt that digital marketing is and will be the driving force in financial services, ponder this: Between 2012 to 2017, spending on digital marketing by the financial services industry is expected to double to reach $168.4 billion.
Even with a number that substantial, financial services companies have been sluggish in moving with their consumers. So before we catch a flight to Miami for NetFinance, let’s look at some areas of digital marketing that can help the industry increase their visibility and conversions.
Data to Drive Demand
Consumers want their financial institutions to provide them with information, but not just any old information—information about them. They want it personalized. This means the industry needs to invest heavier into analytics and marketing automation to deliver the right customer segmentation the right CTA.
And as for new sales, predictive data is poised to be a big difference-maker in 2015.
“A big trend in 2015 will be the use of predictive data to drive demand and understand the marketplace in a more timely manner. The whole notion of PQL’s (Predictive Qualified Leads) will find their way into the conversation and financial service companies will begin to invest in the infrastructure necessary to integrate the datasets necessary for this very compelling evolution.” – Charlie Tarzian of Prelytix
Social Media FTW
Simply put: social media cannot be ignored anymore, no matter the industry. It’s no longer a niche market. Heck, by 2017 the social audience is expedited to reach 2.55 billion. But there’s still much room for improvement in financial services, even with a recent 31 percent increase in social growth for the industry.
The way in which these companies can achieve a larger reach is by actually leading their costumers to social media. With 59% of customers being unaware of their firm’s presence on social media, visibility is paramount. So how do you do it? One of the best ways is incentivize customers with promotions that lead to social sharing.
Email an Afterthought
In many industries, email has become the most important channel to engage both prospects and existing customers. Not only is email the easiest channel to collect data from, but its ROI makes it one of the most effective ways to increase your bottom line.
However, financial services companies don’t take advantage of email marketing. And when they do, they’re underperforming, “averaging click-through rates of 2-3%, mainly due to poor segmentation,” this according to Marketo.
Mobile on the March
As more and more consumers gravitate to mobile to manage their finances and receive alerts, financial services companies must follow. In 2013, more than 50% of the country’s 5,800 commercial banks offered mobile banking, and that number has grown. But shouldn’t it be higher?
Mobile is an investment, yes, and it requires a sharp understanding of user trends and technological advancements. But it lets financial services companies reach their customers in a new, more personal way. Mobile isn’t just a piece of the customer experience. It’s become the customer experience.
And you can take that to the bank.
Be sure to check out our post-event blog post on NetFinance, which is held from April 27-29 at the Trump National Doral Miami in Miami, Florida. If you’ll be attending, drop us a line.