Marketing automation is no longer just an industry buzzword. In fact, 91% of marketing automation users agree it is very important to the overall success of their online marketing activities.
Historically, the fastest industry adopters of marketing automation include software, internet, telecommunications, and business services. However, dramatic strides in digital advancement have shifted the world of retail banking like never before. With this, a change in consumer behavior and expectations have triggered banks to respond by redefining their traditional mindset of marketing.
In this blog, I will share the three main challenges the banking industry faces when engaging today’s modern consumer and how marketing automation is the key to overcome these challenges.
Seek Out Opportunities in Data
Most industries are far ahead of financial services with insight-driven marketing. This is surprising since banks and credit unions have access to significantly more transactional, behavioral, and demographic consumer data that would make other industries drool with envy. In fact, a 2017 Accenture study found that 73% of US consumers are willing to provide their banks access to personal and financial data in return for added benefits in the form of offers, reduced interest rates, recognition and custom financial advice.
However, despite ever-increasing volumes of rich data, most financial institutions struggle to ever profit from it. In fact, banks and credit unions only use a fraction of their collected data to generate consumer insights and enhance the customer journey. Research reveals that less than 50% of banks analyze customers’ external data, such as social media activities and online behavior and only 29% analyze consumers’ share of wallet—the key measure of a bank’s relationship with its consumer!
What does this mean for the banking industry?
According to research by Narrative Science, the single biggest barrier to big data success among financial services firms is the existence of data silos followed by the lack of time and recourses needed to analyze and derive insights from data. With marketing automation, banks can now realize the promise of big data by obtaining a 360-view of their customer in real time. This allows them to capture and manage data from a vast array of sources and marry consumer insight with marketing strategy in order to enhance customer engagements and identify new upsell and cross-sell opportunities.
Use of Data to Define the Customer Journey
As the importance of leveraging big data in the banking industry rises and it becomes collectively agreed that consumer insight is an important differentiator against competition—there still seems to be a long way to go.
Unless consumer data can be used to understand the customer, look out for the customer, or reward the customer, the data insight is of limited value. Fortunately, with marketing automation, it now possible for banks and credit unions to use data to develop actionable insights and provide engagements that are relevant to the customer’s stage of life and immediate financial needs.
<img src="https://blog.marketo.com/content/uploads/2017/11/Facebook.jpg" alt="Facebook Example" width="780" height="546" srcset="https://blog.marketo.com/content/uploads/2017/11/Facebook.jpg 1094w, https://blog.marketo.com/content/uploads/2017/11/Facebook-300×210.jpg 300w, https://blog.marketo.com/content/uploads/2017/11/Facebook-768×537.jpg Go to the full article.