With the widespread digital migration during the pandemic, financial marketers have learned to reinvent their campaigns to support this ongoing change, as well as a renewed focus on personalized financial advice and wellness tools, as well as increasing consumer spending on e-commerce.
Most of all, they were faced with the challenge of improving the agility of their marketing production processes and developing martech stacks that enable faster access to data to enable real-time business decisions.
A new type of credit card customer is emerging
The pandemic caused consumers to rethink their relationship with credit card debt. As unemployment rose, discretionary spending fell and many consumers used business stimulus checks to pay for credit cards. This had a significant impact on average consumer debt, with credit card balances declining 14% overall in late 2020 compared to 2019. It was the first time in over a decade that credit card companies had seen such a decline.
When people used their credit cards, the spending categories reflected more practical, digital trends, such as greater reliance on Amazon and other e-commerce options for everyday goods. Card companies have introduced new perks and rewards to address this change, including offering credits and accelerators for everyday purchases, digital subscriptions and deliveries, and co-branded travel cardholder points for non-travel-related purchases.
To help retain customers as spending evolves in 2021-22, card companies are offering more flexible benefits and rewards, such as: B. redeeming miles for purchases in new categories such as streaming and delivery or repayments in the form of account credits. While travel benefits, rewards, and partnerships are expected to return – some already have – they are likely to play a lesser role in the overall value proposition of many credit cards.
Financial services marketers need to adapt their marketing campaigns to introduce new credit card features, increase customer awareness and engagement with new benefits and rewards, and clearly demonstrate the value of the credit card to consumers, especially co-branded travel cards and premium cards with higher ones Annual fees. A Few Marketing Tactics To Do This Successfully:
Replacing “one-size-fits-all” content in marketing campaigns with messages tailored to the behavior of the customer. Has a consumer’s card usage slowed since new benefits replaced old ones? Content that explains and reinforces the value of these new benefits may be appropriate. Has another consumer looked at the new benefits that you are marketing? This is a great opportunity to show them the value they have already earned so far to further promote future use.
Increase the value of the card in your marketing touchpoints. Don’t wait until the anniversary of a customer’s renewal to send a message quantifying the value of the card – rewards earned, bank statements, and other perks. While such reminders are often sent as a customer’s renewal date approaches, they should be considered throughout the lifecycle. A monthly card value summary email or a permanent banner highlighting the value the customer has seen so far are good ways to do this.
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Growing relationships with private customers
During the pandemic, Google searched for topics related to recession and debt, and phrases like “Mortgage Forbearance” and “Can’t Pay Rent” exploded across most of the country. Now that the economy is turning, many banks and credit unions have focused on attracting checking and savings customers by selling premium deposit products or cross-selling them to consumers with multiple relationships.
The focus is on marketers who run sophisticated marketing campaigns based on personalized offers that meet the individual needs of each customer. Some pointers:
Take into account real-time needs and customer behavior. Develop a series of automated, “always-on” triggered communications that can present the most current and relevant offers to consumers across all channels. For example, send a remarketing email with the latest loan offers to people who have recently searched for loans on your website. Or provide an in-app proposal for a checking account that includes overdraft protection after a customer undeliverable.
Extension of the “Next Best Action” and Decision Engine functions beyond your website to customer relationship management channels such as e-mail and mobile. Most financial service brands use advanced decisioning engine technology on their websites to show recommended deals or the next best deal in real time. Consider investing in developing APIs that can take this decision to other channels.
More sales with digital and mobile power users
Mobile banking experienced a renaissance in 2020 and the number of app users is expected to rise again in 2021. More than ever, financial consumers are demanding a seamless omnichannel experience. Now it’s the job of marketers to turn mobile customers into long-term users whose value as customers increases. Personalized marketing campaigns can help new bank customers set up and engage their mobile app without having to visit a branch or even a website.
Some Ways Marketers Can Drive Digital And Mobile Power Users:
Promotion of regular app logins by enriching push notifications with “Rich Push” technology. Such notifications allow marketers to include personalized images and content in notifications, which goes beyond the engagement with standard text messages.
Proactively present compelling offers and reminders in the app using in-app interstitials. Banking apps contain valuable reminders of available account benefits or offers, but they are often hidden deep in the app’s interface, making them difficult for customers to find. A tactful, personalized in-app interstitial highlighting this content can encourage customers to log into the app repeatedly.