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Banks need to Implement Marketing Automation Cloud Now

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Marketing automation cloud is not a buzzword for the Marketing industry. 91% of people who use marketing automation cloud agree that it is essential for the overall success of activities of online marketing.

According to history, software, internet, telecommunication, and business services are the fastest market automation adopters. Even so, retail banking has shifted tremendously because of the digital advancements. There is a change in the behavior and expectations of the consumers. This makes the banks to respond by redefining their marketing strategies.

In this article, we will look at the challenges that banks face while trying to engage the modern consumers of today’s era. We will also look at how marketing automation cloud is a solution to these problems.

Seeking opportunities in data

There are a lot of industries that outshines the financial services industry because of insight-driven marketing strategies. This information is a shock to many because banks and credit unions have access to a lot of consumer insights. They have the transactional, behavioral, and demographic consumer data that other industry wishes but do not actually have. In 2017, a study by Accenture found out that 73% of consumers from the US is more than willing to give out their personal and financial data if there are some benefits they can enjoy. Benefits such as offers, lower interest rates, recognition, and customized financial advice.

Financial Services keep getting rich data in increasing measures, yet they struggle to optimize the benefits therein. Banks and credit unions only use a small percentage of the data they receive to generate consumer insights and improve their customer journey. According to research, 50% of banks will take time to analyze the external data of their customers. These include their activity on social media and their online behavior. 29% of the banks will examine the share of a wallet belonging to the consumer yet this is an essential measure of the relationship between the bank and the consumer.

What does this mean for the banking industry?

According to Narrative Science, the most significant barrier for financial services firms is to achieve excellent data success is the presence of data silos. The lack of time and absence of resources that they need for analyzing and driving data to come from the availability of the data silos. Marketing automation cloud helps banks to realize the promise of big data. They can get a 360-degree customer view in real time. With this, they can capture and manage data from numerous sources and combine the consumer insights and marketing strategies. Hence can improve their customer engagement and locate upsells and cross-sells opportunities.

Defining the customer journey using data

It is crucial for the banking industry to leverage big data and this practice is increasing tremendously across the industry. Financial institutions are agreeing that consumer insight is vital in setting apart the competition. Even so, there is a long journey for the banking industry to cover.

Data that cannot be used to understand the consumer, look out for them or reward them is more or less useless. Marketing automation cloud makes it possible for the banks and credit unions to use data with little value to obtain insights that are actionable. It also provides customer engagements which are relevant to the stage of the consumer and their financial needs that are immediate.

Below are a few scenarios of how consumer data and marketing strategy intersection looks like.

Scenario one: Christie Jones is a college student. She is looking for financial aid and resides in California. She searches for “student loans California.”  He visits one of the banks and sees a banner ad for college financing.

Scenario two: After Christie’s graduation, she gets her first job. Now she is looking for a house. She visits the website of a credit union and reads their offer for home loans but holds it off. While she is on social media, she gets a targeted ad from the bank. They inform her of an offer for home loans.

Scenario three: Christie is growing and passing through numerous stages in life. Time becomes of great value. She gets a direct email from the credit union, and they are offering her investment options. They also offer to assist her to open a retirement account.

What does this mean for the banking industry?

The traditional marketing funnel is becoming obsolete. Therefore, banks and credit union can no longer ignore the essence of creating awareness of the customer journey. The banks will be able to know when and where to market their products to customers. The best possible time is when there is a trigger for financial services.

It is sad that around 37% of customers believe that their banks are not aware of their needs and preferences. Because of this, many people predict that there might be a tremendous increase in AI-based technologies. These technologies will help the banking industries to automate and analyze vast amounts of data.

Accept the emerging channels

Digital marketing was introduced in the 1980s, and it has seen tremendous changes over these years. In those times, you only needed a landline to access your account balance. But today, you can transfer funds, make payments, and deposit checks without any hassles. Technology is always advancing. Because of this, there might be some changes in consumer behavior and their expectations. These changes will make banking service providers to revamp their strategies to enhance customer experience.

Many years ago, the start to migrate from brick and motor banking began. In 2018, the transformation will go to greater heights. Digital engagement will become smoother, and the consumers of the banking industry will value their time even more. According to Forrester study, Omni-digital behavior grew to 46% from 27% in five years. Forrester also predicts that financial institutions will hardly see their customers, members, or clients in 2018. The reason being the advancements in the digital world.

What does this mean for the banking industry?

A customer journey that is connected is vital for engaging and retaining consumers. Even so, many banks are facing the challenge of creating a single view of their customers. This is because of the noise from the numerous channels we have. A study shows that 20% of consumers claim that the quality of services financial service providers offer is the same across different communication channels that they use. Also, many marketers say that half of their campaign messages are similar across all the channels they use. One can send out similar messages over multiple channels. Another marketer can create a harmonized experience across different channels to engage the customers on a level that is wholesome. These two methods are different. Marketing automation cloud will enable banks to create a connection and association across numerous channels of communication to create a brilliantly integrated experience.

Conclusion

Consumer behavior and expectations will keep shifting increasingly. Many banks will face challenges because of the shifts, and this will make them rethink their strategies and the experience they provide to their consumers.

Marketing automation cloud will come in handy. It will help banks put to use the robust consumer data they have to access new opportunities and redefine cross-channel consumer relationships. Marketing technology will become a necessity in for the current marketer. Financial institutions will not escape it.

As a bank or credit union, what success stories do you have because of marketing automation? What improvements do you see? Are you a consumer who has seen the negativities or impersonal communication or advantages of personal communication? I would love to know your experience. Leave your comments below.

 

Pritha
Pritha Bose is the Marketing Content Specialist at Aritic where she writes and edits for their marketing and sales blog. She has an eye for details and likes to do in-depth research for her articles. In her free time, Pritha likes to travel and post pictures of beautiful locales on her Instagram profile. Follow her on Twitter @prithabose
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1 Comment
  • Matthew Jenkins
    4 weeks ago

    I agree, everything around us is progressing and it’s about time banks implement new marketing methodologies and not just depend on what was done in the past. As a banker and customer, it will be beneficial for both. One is provided ample of options and can compare them sitting at home rather than physically having to visit. The banking industry will only benefit as their sales will go up.

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