By: Jason Medick, VP, Marketing, Advisors Plus Consulting
As we continue into 2024, financial institutions have a myriad of opportunities to shape a successful year. In the dynamic landscape of the financial services industry, being strategic with your organization’s marketing approach is critical. Here are ten marketing strategies for financial institutions to consider as they embark on a journey toward prosperity and customer satisfaction in 2024.
- Align with Your Mission and Values — Craft a Strategy with Purpose
Define specific goals that are aligned with your corporate mission and values. Whether it’s customer acquisition, balance growth, increasing spend volume or other opportunities, ensure your marketing strategy is a cohesive part of the bigger picture. Your front-line branch employees are highly valuable assets and are the “boots on the ground” to provide a personal touch for your customers. Ensure staff are trained and confident in how to position features and benefits of your card products in alignment with individual accountholder needs. Transform them into your “sales arm,” promoting your offerings and building stronger connections with customers in person.
- Ongoing Portfolio Management — Be Proactive
In the ever-evolving world of finance, proactivity is key. Implement high-level ongoing portfolio management by identifying and monitoring key performance indicators (KPIs) — and identifying a senior leader to actively manage to them. Adopt a customer lifecycle approach, closely tracking new accounts, card usage and retention to stay ahead of evolving customer preferences.
- Meet Customers Where They Are — Stand Out in a Flood of Offers
The competition is flooding the marketplace (and your customers) with aggressive offers, rewards and promotional rates. In the third quarter of 2023 alone, nearly 1.2 billion direct mail offers were delivered. Don’t be afraid to market your competitive cards as well, highlighting the unique values your financial institution brings to the table.
In an era dominated by social media, banks must meet customers where they are. It’s estimated that 72% of retail marketing mix is dedicated to social media, versus just 6% of card marketing mix. Retailers are great at utilizing popular platforms such as TikTok, Instagram and Facebook to generate new sales. Financial institutions can – and should – follow suit.
- Trend-Aligning Card Products — Stay Ahead of the Curve
Align your card products with market trends to stay relevant and remain competitive. This includes offering attractive introductory APRs, promotional rates and enticing rewards. Regularly assess and adjust your card offerings to ensure they mirror the dynamic expectations of your customers and the market.
- Seamless Digital Experiences — Meet Modern Expectations
Digital experiences define user satisfaction, and financial institutions must prioritize seamless and safe digital interactions. Enhance your mobile app and website to provide secure and frictionless experiences, integrating sought-after features such as contactless payments, peer-to-peer (P2P) transactions, Buy Now, Pay Later (BNPL) options and real-time alerts. By meeting these expectations, you not only satisfy existing customers, but also attract tech-savvy individuals (especially Gen Z) seeking a modern banking experience.
- Strategic Seasonal Campaigns — Anticipate and Cater to Customer Needs
Planning ahead is a cornerstone of successful marketing. Anticipate customer needs and plan seasonal campaigns with competitive rewards and promotional APR rates. Whether it’s summer travel, holiday spending or events like Amazon Prime Day, align your promotions with the pulse of your accountholders. Don’t forget that personalization is key when communicating with your customers; simple content tweaks such as including names and “cardholder since year 20XX” add a sense of personalization and customization. Customers appreciate the attention to detail, and it enhances their overall experience.
- Early Months On Book Excellence — Elevate First Impressions
As the saying goes, “first impressions matter.” For financial institutions, this translates into Early Months On Book (EMOB) excellence. Leverage the power of marketing automation to establish a robust communication schedule with new cardholders. Encourage prompt card activation and take it a step further by promoting actions such as integrating cards into mobile wallets and setting up recurring payments. By doing so, you not only ensure cardholder engagement but also secure a coveted spot at the top of their wallet.
- Empower with Balance Transfer Campaigns — Provide a Financial Boost for Customers
Financial well-being is a shared goal. Empower your customers with low-rate balance transfer campaigns designed for debt consolidation. Beyond the financial benefits to your customers, such campaigns reinforce your commitment to their overall financial health.
- Customer Graduation Plan — Evolve with Customer Needs
Customers’ lives evolve and so should their financial tools. Develop a strategy to ensure they are using the most suitable credit or checking/debit card products for their evolving needs. For example, if customers are using personal cards for business transactions, they may better benefit from your business card product, which can provide higher rates of interchange. Also, be sure not to neglect your student card segment. At some point, this highly sought-after young demographic will have different financial needs, so you should have a strategy ready to grow with them and keep your card top-of-wallet. Regularly assess your customer segmentation and adjust based on changing requirements to foster lasting relationships.
- Harness Merchant-Funded Rewards — Balance Value and Expenses
If your rewards provider offers merchant-funded rewards, seize this opportunity to participate, especially in the current era of cost-consciousness. It’s a strategic way to lower expenses while concurrently delivering tangible value to your cardholders.
Consider these strategies as part of your marketing blueprint for helping your financial institution achieve success in 2024. By embracing these approaches and staying attuned to market dynamics, financial institutions can navigate the ever-changing financial landscape, meet customer expectations and stand out in a highly competitive market. Cheers to a successful and prosperous 2024!
