Competition among banks is as intense as ever. Banking is especially prone to de-personalization. Digital marketing is a means for banks to develop a more personalized, humanized look and feel.
The Perception Of Banking Services
A 2017 study based on 33,000 banking customers in 18 markets across the world looked at the public perception of banks. The study found 3 distinct groups of bank clients who want related, but distinct, things from their banks.
- Nomads are an identified group of bank customers who want banks to be able to match the service level of tech providers in terms of digitally driven service level. This group expresses an open willingness to leave banks and contract with “non-traditional providers” to manage their finances. More than three-quarters (78 percent) of this group would be willing to bank with a technology firm like Amazon or Google. Most of them (78 percent) are willing to share personal data with their bank, but 66 percent would demand faster, easier service in return. For this group, banks unwilling or unable to adopt digitally-based services may lose customers to non-bank competitors. Banks may need to improve their services or grant compensation in the form of discounts or cash rewards.
- Hunters are people who prefer traditional banking but demand a more human touch and are waiting for new services. The vast majority of hunters (83 percent) care most about lowering the cost of bank services, without compromise on services. More than three-quarters (76 percent) will demand lower prices in exchange for data sharing.
- Quality Seekers want to stay with their banks, but they do want to see innovation. They are open to automation. They want an enhanced banking experience. Nearly half (49 percent) of the quality seeker group believe that high-quality customer services are what drives customer loyalty. More than half (53 percent) state how confidence that personal data will be secure will make them stay with banks.
For these groups, the advantages obtained by maximizing digital marketing are critical, for many of them, critical to the survival of the bank as an institution.
What Is Digital And Social Marketing For Financial Institutions?
Social media marketing for banks has become a solution necessary for building relationships with customers. It has gone beyond being an important tool.
Digital marketing provides banks, credit unions, and lenders a means to connect and build relationships with customers untainted by the sales process. This kind of marketing through social media and direct digital transmission helps modern financial services providers truly understand consumers and enable financial services providers to target their communication and their advertising. It helps with issues of compliance, customer service, and user experience. Any financial institution can now use Facebook, Instagram, and other platforms to offer real help and support to their customers.
- Social media increase connections between the institution and its customers.
- Banking institutions have traditionally had trouble making consumer connections because they would only interact when it was necessarily and then largely because of bad news.
- Digital marketing and social marketing increase the touch points so consumers can see and interact with their banks many times, monthly, weekly, or even daily.
- Social media is perceived as personal contact and using social media generates a sense of relationship with the bank’s brand, customer-satisfaction applications, and value-added content.
One bank, for example, ran a live webinar on debt consolidation and savings. Banks can offer substance they are known to have expertise in at minor costs to themselves enhanced with automation on social media. This kind of value-added service can drive greater loyalty. It is also something few other institutions can credibly offer.
Banks can offer chat services through social media, available to answer questions during or after business hours. This kind of service fosters a sense of intimacy with the bank and will be perceived by customers as a major customer service advance.
Furthermore, digital marketing can still offer promotions. Most affluent bank customers are actively looking for financial solutions which banks may offer. Failing to pitch superior bank services is a missed opportunity. Digital media can offer limited time offers, special rates, and personalized solutions directed at just the right customers and present these solutions through chatbots and other media generating a sense of personal service.
Some banks are heavily involved in social media marketing. Some are now dipping their toes in the pool. If you’re not doing either, take a look around at the competition, then get on board before it’s too late.
For more information about social media marketing tips for the banking industry, or to schedule your free digital marketing consultation, please call 720.248.8185, e-mail [email protected], or click here.
Please note: The Friedman Group is an inbound marketing agency based in Denver, Colorado, and we work with professionals and business owners across the U.S. Our digital marketing services include: inbound marketing, social media marketing, email marketing, and digital marketing strategy and implementation.