Marketing Challenges for the Finance Sector and Tips to Improve Your Tactic
Marketing in today’s world has become very difficult. The sheer number of channels, mediums and touch points that marketers are required to deal with is a challenge in itself. This is a view concerning marketers in general but, it becomes even more difficult when speaking of marketers from the finance industry. They face some extra challenges over and above the general ones and this is why it becomes necessary for them to come up with new techniques to overcome them.
Banks, insurance companies and building societies that constitute the core of the finance sector face one of its kind marketing challenges that have a unique nature while comparing them with other sectors.
The ever-evolving landscape coupled with new regulations means a richer and profound understanding of the marketplace. Needless to say, all these techniques are to ensure the highest satisfaction of the customer for whom the service is tailored – more so if the businesses are to reap benefits from the budding opportunities while simultaneously staying a step ahead of their competitors.
This article is aimed at enlisting the challenges pertaining to marketing for finance industry and tips to tackle them to help build strong brands.
Challenges Faced by the Finance Sector
The ever-evolving landscape coupled with new regulations means a richer and profound understanding of the marketplace. Needless to say, all these techniques are to ensure the highest satisfaction of the customer for whom the service is tailored – more so if the businesses are to reap benefits from the budding opportunities while simultaneously staying a step ahead of their competitors.
This article is aimed at enlisting the challenges pertaining to marketing for finance industry and tips to tackle them to help build strong brands.
Challenges Faced by the Finance Sector
- A highly regulated industry
When it comes to regulation, the finance sector tops the chart. No other industry is as regulated as the financial services industry is. These regulations demand from the marketers to diligently follow sanctioned procedures while also ensuring that any type of content, be it a customer letter or an advertising campaign, has the seal of approval for publication.
Software platforms are now available which make it possible to automate the entire marketing production, facilitate sharing and collaboration and can also make internal team parallel behind the brand while being within the rules and regulations laid down by the industry. This leaves marketing teams free to focus on strategic tasks of marketing instead of losing sleep over the process adherence.
Software platforms are now available which make it possible to automate the entire marketing production, facilitate sharing and collaboration and can also make internal team parallel behind the brand while being within the rules and regulations laid down by the industry. This leaves marketing teams free to focus on strategic tasks of marketing instead of losing sleep over the process adherence.
- Keeping up with the latest developments while prioritising on the customer
The finance sector places greater emphasis on the fact that the products and services that are marketed to the customers should be affordable to them. Legislations like Mortgage Market Review and the Financial Conduct Authority have been carrying out market analysis which makes the brands prioritise the customer while ensuring the presence of accurate procedures to safeguard both the brand and the customer.
Being able to afford the financial services comes down to much more than verifying an individual’s earnings. Additional insight on the finances and lifestyle of the customer can assist brands to go beyond having a perception of the customers upon which the decisions are based.
When financial firms are marketing themselves to the public at large, they must ensure that they are selling not just the financial ability but the company image in its entirety. By evaluating the sophistication of the products and services and recognising their suitability in accordance to the customer type, it is possible to reduce the risk while demonstrating compliance.
The way you address and treat your customer is also a crucial aspect. It is also important that companies take every step to market the correct financial services and products to the right people basing it upon a thoroughly researched and detailed understanding of their target audience. Moreover, customer interaction on the basis of individual preferences, behaviours and influences instigate loyalty, advocacy and trust.
Being able to afford the financial services comes down to much more than verifying an individual’s earnings. Additional insight on the finances and lifestyle of the customer can assist brands to go beyond having a perception of the customers upon which the decisions are based.
When financial firms are marketing themselves to the public at large, they must ensure that they are selling not just the financial ability but the company image in its entirety. By evaluating the sophistication of the products and services and recognising their suitability in accordance to the customer type, it is possible to reduce the risk while demonstrating compliance.
The way you address and treat your customer is also a crucial aspect. It is also important that companies take every step to market the correct financial services and products to the right people basing it upon a thoroughly researched and detailed understanding of their target audience. Moreover, customer interaction on the basis of individual preferences, behaviours and influences instigate loyalty, advocacy and trust.
Once customer engagement takes place, finance companies need to make sure that they continue to treat them correctly. Business circumstances tend to change and what was suitable a month ago may not be the same in the next. It is only by means of rich data collection and selection that marketers will be able to consider the customer’s external lives and treat them in a responsible manner.
Envisaging customer reactions for future regulations is very difficult but critical at the same time if the finance companies are to offer the appropriate level of flexibility and service. A well scrutinised database on customer intentions is elemental and will provide the required insight in order to offer the right kind of services at the right point of time.
As is the case with a significant part of marketing, it all comes down to putting the customer first. What they want, need and the way they behave. With thorough understanding of the customer, financial brands can easily communicate and tailor customised experiences. This is of utmost importance in the finance sector when there is a lot of pressure of responsible lending where the brand needs to know who they are communicating with and the way they should be responding.
Envisaging customer reactions for future regulations is very difficult but critical at the same time if the finance companies are to offer the appropriate level of flexibility and service. A well scrutinised database on customer intentions is elemental and will provide the required insight in order to offer the right kind of services at the right point of time.
As is the case with a significant part of marketing, it all comes down to putting the customer first. What they want, need and the way they behave. With thorough understanding of the customer, financial brands can easily communicate and tailor customised experiences. This is of utmost importance in the finance sector when there is a lot of pressure of responsible lending where the brand needs to know who they are communicating with and the way they should be responding.
- Adhering to legal compliance
Before any part of marketing or communication can leave the office, it has to go through a compliance check. More often than not, it obstructs getting the marketing and communication material out to the general public. There has to be a bridge between the marketing team and the legal and compliance team. The workflow model must be configured in a way that it fits your firm’s marketing production processes.
Irrespective of the number of people or departments involved in the final sign-off, the entire process can be automated so that nothing can happen without correct authorisation. Using softwares for these processes will leave behind a digital trail so that compliance audits can be easily carried out.
Explanation of the artwork can also be done in the system which will increase the accountability and assist in reducing the risk of errors. Automating the process of the workflow facilitates your marketing and communication material to reach the press at a faster pace while greatly reducing compliance issues.
Make sure that your brand management module allows all internal employees to have access to brand guidelines, processes and all the brand positioning material round the clock. These could be used to create unswerving, brand-related marketing communications. By letting your employees engage and be informed about your brand, you transform them into a militia of brand ambassadors.
A strong and consistent brand and message helps customers distinguish your firm from your competitors, making your brand and its offers to stand out. This generates brand loyalty. The key to engage today’s audience is through channels that they resort to a lot and by this, it means through social media. Social media is the key to appeal to your audience at large and hook them in by constantly updating them.
Similarly, mutual funds purchased on a long-term basis would be unknown for several years once the shares have been bought. It is the duty of the financial services advertiser to create a perceptive and appreciation for the fundamental qualities of a marketed financial offer.
Compelling declarations regarding the effectiveness of the claims processing procedures of the company or overall customer satisfaction may assist in accomplishing this task. When talking about mutual funds, revealing the fund manager’s qualifications or the previous performance of the fund may go a long way in conveying the sense of quality that the consumer can expect.
Of course, it is obvious that without the right marketing techniques these aspects of quality would remain in the dark. The finance companies may do everything in their power to make information regarding the quality of the financial services available, but few seem to comprehend how to make the case truly compelling and interesting for the customer. This is where the magic of marketing will work wonders.
Irrespective of the number of people or departments involved in the final sign-off, the entire process can be automated so that nothing can happen without correct authorisation. Using softwares for these processes will leave behind a digital trail so that compliance audits can be easily carried out.
Explanation of the artwork can also be done in the system which will increase the accountability and assist in reducing the risk of errors. Automating the process of the workflow facilitates your marketing and communication material to reach the press at a faster pace while greatly reducing compliance issues.
- Customers may have trust issues in financial services
Make sure that your brand management module allows all internal employees to have access to brand guidelines, processes and all the brand positioning material round the clock. These could be used to create unswerving, brand-related marketing communications. By letting your employees engage and be informed about your brand, you transform them into a militia of brand ambassadors.
- Customers might find it difficult to differentiate between brands and their offers
A strong and consistent brand and message helps customers distinguish your firm from your competitors, making your brand and its offers to stand out. This generates brand loyalty. The key to engage today’s audience is through channels that they resort to a lot and by this, it means through social media. Social media is the key to appeal to your audience at large and hook them in by constantly updating them.
- Financial product’s quality is intangible
Similarly, mutual funds purchased on a long-term basis would be unknown for several years once the shares have been bought. It is the duty of the financial services advertiser to create a perceptive and appreciation for the fundamental qualities of a marketed financial offer.
Compelling declarations regarding the effectiveness of the claims processing procedures of the company or overall customer satisfaction may assist in accomplishing this task. When talking about mutual funds, revealing the fund manager’s qualifications or the previous performance of the fund may go a long way in conveying the sense of quality that the consumer can expect.
Of course, it is obvious that without the right marketing techniques these aspects of quality would remain in the dark. The finance companies may do everything in their power to make information regarding the quality of the financial services available, but few seem to comprehend how to make the case truly compelling and interesting for the customer. This is where the magic of marketing will work wonders.
- Financial products are not very appealing
Customer engagement in terms of benefits of an insurance policy that they purchased, the rates of return on an investment product, or the inspection of accounting services provided at a commercial bank hardly ever steer excitement or appeal. This is the sole reason why, financial services are generally not linked with high levels of consumer involvement, emotions, enthusiasm and symbolism.
Moreover, the high level of complexities makes inducing emotional responses more tasking than it would be for other consumer goods, for instance – electronics. The quantitative and contractual feature of financial products and services requires significant levels of cognitive effort and mathematical processing before consumers can fully realise the merits of a well marketed offer.
The standard answer to this is – images relating to stocks and faces of families are simply not enough to pique the interest of the consumer.
Moreover, the high level of complexities makes inducing emotional responses more tasking than it would be for other consumer goods, for instance – electronics. The quantitative and contractual feature of financial products and services requires significant levels of cognitive effort and mathematical processing before consumers can fully realise the merits of a well marketed offer.
The standard answer to this is – images relating to stocks and faces of families are simply not enough to pique the interest of the consumer.
- Limited ability to communicate visually
The way a financial product or service is marketed will differ from how a consumer good is put across and communicate to the target audience. A car manufacturer may feature his product making use of enticing photographs and images, which increase the sensory input of the customer and this creates a sense similar to consumption of the product. This increases the emotional and cognitive impact that marketing generally instils in the consumer.
When you market and advertise an insurance policy or an investment product, the challenge is to present a conceptual, intangible and abstract product visually.
The challenges in visual communication of financial products need experienced, imaginative and attentive development of marketing material to entice the viewer regarding the functional aspects of the financial product.
When you market and advertise an insurance policy or an investment product, the challenge is to present a conceptual, intangible and abstract product visually.
The challenges in visual communication of financial products need experienced, imaginative and attentive development of marketing material to entice the viewer regarding the functional aspects of the financial product.
- Encouraging faithfulness and retention within financial services
The dawn of online comparison sites in the past 15 years has given customers an extensive range of choices when purchasing financial products online. For financial brands this means it is increasingly tricky to establish connect with customers to give them a positive brand experience. The experience of the customer counts for a lot as it is one of the major factors encouraging faithfulness and retention, and this you can find out from any marketer.
How can brands enhance loyalty and retention of the customers?
Building an analytical customer journey model will help as a data-driven model will clearly shed light on customer behaviour. This will bring to light patterns and trends that can highlight when customers leave and who they are – giving the marketer an opportunity to interact with them before they do so.
The experience of the customer is crucial and brands can assure that their communications are pertinent, personal and timed well. These are likely to be more successful at keeping customers satisfied and happy, thereby increasing their faithfulness towards the brand. This ability is obviously dependent on refined customer insight.
However, these marketing tactics are not all about pricing and discounting. Financial services businesses must take into account the definition of those seeking a greater level of service and whether they would be keen to pay more for it. Who is to know, it could certainly be that in today’s instant online world where certain segment of the consumer wants to be reassured, guided and have increased level of security for which they do not mind paying a little more for.
Tips to Improve Your Financial Services Marketing and Advertising
How can brands enhance loyalty and retention of the customers?
Building an analytical customer journey model will help as a data-driven model will clearly shed light on customer behaviour. This will bring to light patterns and trends that can highlight when customers leave and who they are – giving the marketer an opportunity to interact with them before they do so.
The experience of the customer is crucial and brands can assure that their communications are pertinent, personal and timed well. These are likely to be more successful at keeping customers satisfied and happy, thereby increasing their faithfulness towards the brand. This ability is obviously dependent on refined customer insight.
However, these marketing tactics are not all about pricing and discounting. Financial services businesses must take into account the definition of those seeking a greater level of service and whether they would be keen to pay more for it. Who is to know, it could certainly be that in today’s instant online world where certain segment of the consumer wants to be reassured, guided and have increased level of security for which they do not mind paying a little more for.
Tips to Improve Your Financial Services Marketing and Advertising
The companies from the finance sector generate more direct mail and direct marketing every year than any other sector. However, the quality of creativity across the financial sector is usually not that great and appealing.
Here is a list of tips that marketers from the finance sector must adopt to appeal to the masses:
This will boost your credibility in the mind of the consumer as they will recognize that you actually know what you are talking about rather than just making assertions.
Here is a list of tips that marketers from the finance sector must adopt to appeal to the masses:
- Your creative work should be professional
- Make it a point to back up your declarations
- Stay relevant
- Offer some kind of benefit
- Impart free and useful advice
This will boost your credibility in the mind of the consumer as they will recognize that you actually know what you are talking about rather than just making assertions.
- Offer a Unique Selling Proposition
When it comes to financial products and services, your target audience has an array of different firms to choose from. Most financial firms have close resemblance to each other, so what would be that one aspect that will differentiate you from your competitor.
Perhaps, your firm could be better communicated by means of advertisements, more well-known and probably it offers something that others do not. This special aspect could be better pricing, more experience, ethical work environment and business policies, enhanced service, more awards and better repute.
Once your message has piqued the interests in potential customer base they will get in touch with you. How you deal with customer enquiries from then on is extremely vital as it could either make or break the deal. So emphasize on your unique selling proposition and bank on it to attract customers.
Tips to Improve Your Response Handling
Perhaps, your firm could be better communicated by means of advertisements, more well-known and probably it offers something that others do not. This special aspect could be better pricing, more experience, ethical work environment and business policies, enhanced service, more awards and better repute.
Once your message has piqued the interests in potential customer base they will get in touch with you. How you deal with customer enquiries from then on is extremely vital as it could either make or break the deal. So emphasize on your unique selling proposition and bank on it to attract customers.
Tips to Improve Your Response Handling
- Respond to any enquiries within 24 hours
- Send a brochure
- Personalise your letter
- Enclose a business card
- Send a schedule of charges
- Send more free information but it should be concise
Getting to Square One
In today’s fiercely competitive world, companies that have distinguished themselves in a highly chaotic crowd, have managed to do so by instituting strong, consistent and responsive brand identities. This is something that companies in the financial sector struggle to acquire.
There are many strategic frameworks that can be utilised to accomplish measurably successful marketing in financial services. These comprises of aspects like understanding the consumer’s decision making process, strategising the communication process through which you establish connect, grasping motivations and requirements of the consumer and the style in which all of these actions are executed.
The applicability of a given framework will rely on market statistics and characteristics, the comprehensive company strategy and the particular service that is being marketed.
Conducting a marketing audit from the outside, starting off with research work to recognise unique marketing challenges is advisable. This includes benchmarking the competition for the best and worst practices, identifying your own internal strengths and weaknesses, and developing a set of suggestions and guidelines for brand and product positioning to drive meticulous execution of strategies and tactics that robustly differentiate your services and breed consumer resonance.