By Mary Ellen Georgas-Tellefsen
In the latest installment of our ongoing series on traditional versus digital bank marketing, we explore the pros and cons of digital marketing methods. Last month we focused on through a similar lens.
Here are a few examples of when digital marketing methods are the best tools for the job:
1. When your budget is limited
We get it. Marketing budgets are sometimes the first thing to go when times get tough. The great news about digital marketing is that you can do a lot with a relatively small budget. In general, you have more control over what you spend in digital marketing and it is less expensive than traditional campaigns. For example, you could spend $250 for a highly targeted LinkedIn campaign versus $50,000 for a broad-based TV campaign. And that potential for targeting can help you reach more of the right people at the right time, increasing your campaign’s ROI.
2. When you need to generate demand among a targeted group of people
Although traditional direct-mail marketing still has the edge when it comes to targeting certain audiences, like existing and former customers, digital can take some other targeting efforts much further, much faster. The ability of digital marketing to capture and analyze data can help you focus your marketing efforts and create hyper-specific segmentation schemes. Once you learn how to harness this power, you can efficiently and effectively pinpoint specific segments—and even individual consumers.
3. When you want to project a younger, hipper brand image
If you want to convey that your institution is modern-thinking and in tune with a younger audience, try shifting more resources to online advertising and social media. While all demographics are online, not all financial institutions are meeting them there. Banks that have a digital brand and communications platform to speak to online users may have a way to differentiate their brands.
4. When you’re committed to a mobile-first approach
Digital marketing includes a wide range of channels, like digital billboards, smart TVs, online, tablets, mobile phones…and whatever might be introduced as the next-generation device. For now, though, your marketing needs to be mobile-friendly, as over half of website usage today is from a mobile device—and this is only growing.
5. When you want to use multi-media to create an interactive experience for your audience
Traditional marketing is mostly one-sided—you can’t do much with a newspaper ad other than display your message. Digital marketing offers the tools to provide customers and prospects with experiences that communicate the brand and value proposition via multiple media—all in one message. An email offer, for example, could include embedded links, an interactive calculator to demonstrate the impact of a lower credit card interest rate, plus a how-to video on the application process. This flexibility allows the marketer to appeal to several different personal preferences all at one time.
However, even if your campaign doesn’t match any of the conditions above, a digital approach can offer significant benefits to any marketing program. Consider these pros.
For all the benefits of digital marketing, it also has its drawbacks. Here are a few of the digital marketing cons you’ll want to consider.
The breadth of vendors, tools and options can seem overwhelming to institutions just getting started in digital marketing. However, digital technologies can help marketers at banks of all sizes and budgets make the most of their marketing dollars and reach the right audiences. The key is to remain focused on your business objectives, start small, experiment and build out a digital marketing program—in concert with your traditional programs—to see what works best in your markets with your target segments.
Mary Ellen Georgas-Tellefsen is an experienced banking industry consultant. She is the Marketing Practice Leader at , LLC, providing strategy, marketing, and digital channel consulting services to the financial services industry. .