5 Proven Digital Marketing Strategies for Financial Services Firms
Marketing within the finance sector can be complex due to the heavy regulatory and compliance factors involved when handling such products. As the COVID-19 pandemic has proven, financial services are essential for all individuals, no matter what walks of life they may come from. However, such a necessary service can come with difficulty for businesses to differentiate their own service from others. Therefore, it is of utmost importance for financial service firms to have strong impactful marketing. This is especially important when taking into account the digitalization of customer interactions.
Read on further to learn about 5 proven digital marketing strategies which are effective for financial service firms.
Invest in a user-friendly website
Millennials and Generation Z are increasingly preferring to reduce their contact with service representatives as much as possible. Rather, these age groups will opt to seek information from avenues that allow them to access financial services online. A firm's website is a key aspect of the online customer's journey. It is essential that customers are able to sign up, change their service details and view their information online as easy as possible. Having a simple customer experience process will appeal to the convenience-driven aspect of customers.
Social Media marketing
One of the biggest objections for financial service firms is the overall lack of trust in financial institutions. However, social media marketing can be used to bridge the perceived gap between financial service firms and customers. Social media is used amongst all age groups - Millennials, Generation Z and Baby Boomers - to connect with family, friends and keep up with current affairs. Financial organisations can easily use social media to foster greater trust and connection in their community by demonstrating a more human side. A study conducted by PWC found that 24% of millennials struggle with financial terms. Educating the community on financial jargon can help improve the understanding customers hold for the financial services that such firms have to offer. Moreover, financial firms can also gain monetary benefits from adopting a more social media-centric approach; with studies finding that the cost of customer service can be cut by 70% if a firms were to use social media as a means to interact with customers.
Email marketing is one of the highest performing marketing channels. As operations are moving online, email is predominately used to alert customers as opposed to marketing purposes. The use of email marketing can help improve click-through rates through tailored email marketing campaigns for certain segments. The use of data analytics can be leveraged to generate marketing campaigns that enable better personalisation of emails. With any marketing strategy, however, it is important for financial industry compliance measures to be followed.
Automation and Big Data
Financial service firms should invest more money into automation and AI tools which can offer unique experiences for customers. The use of automation can assist in the marketing strategies mentioned above and more. Automation can come in the form of a/b testing which tests which marketing campaign is more effective between two customer subsets. Moreover, the use of live chatbots or widgets can also allow for inquiries to be addressed quickly and efficiently. In doing so, conversion and quality of customer experience are more likely to be improved.
Display customer reviews
Lastly, financial services should put a greater emphasis on promoting consumer confidence. Before consumers opt for a financial product or service, they are likely to research the product or service in question to ensure the product/service is trustworthy, reputable and that any risk is minimized. Displaying a strong portfolio of reviews for your goods and service can greatly elevate the trust in your service. A survey conducted in 2015 found that out of 30,000 internet consumers, 70% trusted consumer opinions posted online. Financial services should encourage customers to provide feedback through a variety of channels such as review websites and email alerts. Every online review counts towards developing the image of your financial service.
Although a necessary service, financial services must ensure they are staying on top of digital trends to remain relevant. Digital marketing has huge potential to exponentially grow any business, not just financial. That is why an understanding of why and how digital marketing can be used is essential.