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The present era has brought in a new age of technology. We presently have the challenge of marketing financial products to Generation Z and Millennials. This means we must adopt new strategies and innovative approaches to inform and sell financial products to them.
Though technology and marketing channels are changing, creative content and marketing are still the pillars of marketing innovative financial services. Using creative storytelling and an effective channel/ media strategy will get marketers the best results every time.
Here are some innovative approaches to market financial products in the present landscape.
Innovative Marketing Approaches in Finance
1. Marketing Using Several Channels
The new marketing landscape for financial services must use seamless and integrated customer experience across various touch points. This includes digital channels from websites, social media, email, and mobile apps.
It also includes traditional channels like branches, call centres, and direct mail. The goal is to provide personalised communication and consistent branding across all these channels.
Data and technology must be used to deliver tailored experiences, build brand loyalty and better understand customer preferences and behaviour. TikTok and Instagram are the preferred channels of the younger generation.
Channels like LinkedIn and email marketing can be used to get the attention of older people by giving them relevant topics for discussion on investments and returns. Amazingly, email marketing is still a reliable way to do business, both for B2B and B2C customers with a good Financial PR agency.
Advertising financial products and services on Reels and other shorts will make an impression on the younger generation.
2. Using Data-Driven Information for Digital Marketing in Finance
There’s no escaping the fact that this is the age of AI and Big Data. That is why it is imperative to gather data from different lines of business and synthesize it into one large whole. It gives a better picture of potential and existing customers’ persona and helps decide what products and services need to be marketed to them.
The Chief Information Officer of a financial institution needs to be in constant communication with the Chief Marketing Officer to discuss what information is most pertinent to marketing decisions for individual customers and businesses.
Suppose there has been a merger or buyout of one financial institution by another. In that case, it needs to be decided who will play the principal role in meeting the objectives of connecting data with marketing decisions.
Removing data silos and combining information to make informed decisions is critical to financial marketing success.
3. Employing AI and Automation Techniques
Automation and artificial intelligence have revolutionised all industries, including banking and finance. It has led to more customer engagement, provided personalised experiences and improved clarity and efficiency in delivering financial products and services.
The use of automated techniques for email marketing and chatbots has resulted in a freeing up of resources that can be better used for other high-level tasks in the business.
Using AI, we can analyse vast amounts of data to get targeted results. This helps us make more pertinent and informed decisions about marketing financial products and services.
Using chatbots to handle customer inquiries and make personalised recommendations has enhanced customer loyalty in the financial services industry.
AI algorithms can be created to analyse data to create personalised marketing campaigns that can target groups of customers and increase conversion rates.
Using chatbots and AI for data analytics in the financial services industry has led to significant improvements and optimisation in overall performance.
4. Using Predictive Analytics
Predictive analytics combine historical data with algorithms created through advanced machine learning. The purpose is to predict consumer behaviour, buying patterns and preferences accurately.
Financial services marketers can use predictive analysis to predict which channels and messages have the highest conversion rates. Employing predictive analytics to aid marketing strategies will help financial institutions stay ahead of the competition by making data-driven decisions. The effectiveness of the algorithms gets better with time as more and more results are fed in. It can lead to more ROI for a financial marketing campaign.
Personalisation is the keyword these days, as this strategy is being increasingly employed in digital marketing across all channels. Customers can be wooed effectively by making each message and communication a personalised experience.
Personalisation can take many forms, such as targeted pop-up messages on websites, individual pricing, and personalised products and services.
It is a great way to enhance customer loyalty and reduce advertising costs on campaigns with low conversion rates.
It is also essential to consider what is working and what is not so that efforts are well-spent. Using SEO analytical tools for social marketing channels becomes especially relevant here.
6. Using Net Promoter Score and Customer Lifetime Value
Net Promoter Score is a crucial statistic used by the financial services industry. It is a customer-centric metric calculated by subtracting the number of detractors from the number of promoters in a particular campaign. It ranges from -100 to +100.
For instance, if you have 60% promoters, 10% detractors and 30% passives, your NPS is 60-10=50. A higher positive score is desirable and shows that a campaign is more effective.
Banks use NPS and customer satisfaction surveys to get a good idea of lifetime value and the degree of loyalty attributed to a single customer. Feedback from sales teams can also be used to get better results employing these techniques.
This can result in developing a strategy that serves the customer’s best interests and increases the possibility of customer retention and loyalty.
Of course, speed and efficiency of service, protection of customer data and robust security measures are the traditional means employed by the financial services industry that form the foundation of a good business relationship.
We have now reviewed six innovative ways to market products and services presently employed by the financial services industry. Combining a creative approach and employing storytelling techniques have also been usefully employed in the financial services industry. Using these techniques will play an instrumental role in improving the profitability and ROI of the business.