Benefits of New Age Digital Marketing for Banking and Insurance Companies

Due to the rigid nature of the processes and structure of the banking and insurance industries, the adaptation of the digital pivot, particularly when it came to marketing, was noticeably slower compared to most other industries. But over the past five years, an increasing number of companies have understood the importance of embracing the continually shifting digital marketing landscape.

While there are a number of reasons for this, the increasingly competitive playing field and how customers have become more demanding, coupled with the growing importance of customer retention are at the forefront of financial institutions’ adaptation of digital marketing strategies.

Here are some of the other ways new age digital marketing can benefit banking and insurance companies:

Understanding the Market

The digital revolution has not only changed the way consumer behavior, it has also led to a demand for new products and services from financial institutions. Developing a digital presence, and utilizing the available tools like social media (and practically anything where online conversations occur) allow you to understand these changes, trends, and customer preferences.

The insights gleaned from the available data will allow you to understand which products and services are being talked about, and will enable a more targeted approach towards identifying your market and providing customized solutions for their changing needs.

Identifying Potential Customers

Speaking of identifying your market, the same ocean of conversations available for you to gain insights on the market pulse will also allow you to reach out and connect with people who actually need what it is you’re offering.

The advanced search tools of social media alone are vast improvements over traditional marketing strategies like sending cold emails. So whether it’s finding people who are talking about car and educational loans, asking about surety bond costs, or people ranting about the inefficiency of a particular e-commerce site, hot leads have never been easier to get a hold off.

Customer Support

Over the years, people have developed a preference for social media — @ -ing a company, or reaching them thru chat — over traditional methods like phone and email to address their concerns. And with an increasing number of consumers switching to other providers because of quality customer service, being able to address your customers’ concerns exactly where they are (social media) has become of paramount importance.

In fact, according to the Accenture Global Consumer Pulse Research, of the consumers who switched to another provider due to poor service, more than 80 percent said they could have been retained had their concerns been resolved on their first contact with the bank.

Brand Awareness and Thought Leadership

In a world marked by more demanding consumers, content marketing is one of the best ways to deliver more value to them apart from excellent service, and competitive pricing. Whether it’s producing content that creates awareness for new services, content that establishes thought leadership, or those that develops trust — digital marketing is an excellent tool to provide added value, without overly focusing on sales.

Takeaway

From $53.7 billion in 2008 (according to an RNR market research), global digital advertising expenditure has grown exponentially to a number projected to reach $168.4 billion in 2017 — proving that digital marketing in the financial sector is something players can no longer ignore.

And with the competitive landscape making it a norm for customers to jump ship when a better offer comes along, cultivating relationships and customer retention have become a lead priority for financial institutions — with digital marketing emerging as the main driver to achieving both.

Digital marketing in the industry will only continue to grow in the coming years, find out how you can improve your strategy to get a leg up on the competition!

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