Every behavior conducted in the virtual world creates data output that is the catalyst for analysis and interpretation. Big data is a profound phenomenon that has exploded over the past several years across a vast number of industries, including financial services. By 2025, there will be 175 zettabytes of data in the global datasphere.1 Financial institutions, whether deploying a data-driven strategy or not, ingest priceless amounts of data points every second from their account holders’ spend patterns – the treasure trove can be found in the transaction data. Data is not going away; it is only compounding and compounding…So how can all of this data possibly be made actionable at scale to increase product utilization and adoption? Through the Right Audience, the Right Tools, and the Right Marketing Channels.
Targeting the Right Audience – Using Data
Mass marketing is dead. If traditional tactics such as direct mail or newspaper ads are on an FI’s media plan without using account holder data to build the audiences, then it may be time to re-evaluate. Insights, derived from clean and tagged data, enable a financial institution to have a significant advantage in understanding their account holders and identify opportunities to best grow the relationship with them.
Combining analysis of an account holder’s transactions with an overview of their adoption and utilization of products provides a robust description of each person’s financial landscape. Armed with that knowledge, the marketing and sales team of an FI can execute seamless and dynamic campaigns, laser-focused on targeting the right audience for the right products and services.
Consider this: An FI wants to sell more mortgages but doesn’t know how to find the relevant account holders to deliver messaging that will make the most impact. Using insights from the transaction data, an FI can build a segment of individuals that have the following characteristics and may be in the market for a consumer mortgage:
- Mortgage applicants and those who have recently closed mortgages at the institution.
- Account holders who have recently begun making payments to a competitive mortgage institution.
- Those who have made payments to a moving company.
- Those who have dogs and do not have a mortgage – they may be in the market for a larger yard for their pets.
- Those who clicked into an FI’s mortgage information page online.
- A custom look-a-like audience based on an FI’s recent mortgage activity.
- Higher than average savings account balances.
- Those who are currently renting.
- If an FI has loan officer mobile apps, target users that have executed a download.
Additionally, using this data can provide the intelligence to exclude account holders from the target audience such as those who already have mortgages with the FI or those who are receiving unemployment income.
The Right Tools – For Engagement
Taking this highly relevant audience and getting them to engage now becomes a task of its own. If an FI doesn’t understand the ways their account holders are consuming messaging or utilizing its channels, then that leaves them vulnerable to attrition and competitive pressures.
Insights from transaction data can reveal the current interactions with the institution such as:
- Branch Activity
- Online Banking Activity and Bill Pay
- ATM Activity
- Mobile Banking Activity
- Debit Card Swipes
- Loan Payments
- Last Transaction
If the FI has low activity with an account holder, then they should ask themselves if they have the right tools in place. “A real human connection” is the top necessity for forming a long and strong relationship between institution and account holder. But, not all human connection needs to occur inside of the branch.
“Digital banking” has emerged with heightened consumer demands for more efficient ways to access banking records and complete financial transactions outside of local branches.2 There is an opportunity to personalize the consumer experience within digital tools – such as online banking and the FI’s website – to create an environment relevant and welcoming to each account holder.
For example: Can account holders apply for a loan online or through your mobile app totally contactless? This brings convenience and control to the consumer, allowing them to bank on their time. Product adoption and utilization will increase when consumers are able to interact their way – bringing loyalty and revenue.
Using the Right Marketing Channels
In financial marketing, it is vital to apply the marketing principle that it takes as many as thirteen touchpoints for a consumer to internalize and/or act upon a call-to-action. Financial institution marketers should strongly consider elevating the Internet to a primary media channel, layered on top of the overall marketing mix. As a result of the shift to digital banking channels, the US financial services industry spend on digital advertising continues to rise. It is projected by 2023 that 62.2% of all U.S. ad spending will be invested on the Internet – a 658% increase since 2007.3 Financial institutions need to advertise where their customers spend most of their time – online. And they need to do it now.
With various media and social channels surfacing as a way to reach current and prospective customers, email remains the workhorse of digital marketing. By 2023, email users are expected to reach 4.3 billion, over half the world’s population.4 It’s impact as a significant channel used by marketers will continue to explode, with the future of email marketing being fully intertwined with artificial intelligence and machine learning using high-quality specific data.5
Gaining access to a simplistic turnkey approach can solve many of these challenges, and be transformational for FIs. Using data to fuel email automation can accelerate revenue generation for both current account holders and acquisition campaigns. Adopting a seamless, on-demand management tool featuring quick campaign building can execute targeted campaigns for digital onboarding, drip campaigns, cross sell, financial wellness, retention, share of wallet and competitive win-back. The unification of deep transaction data insights and analytics impacting these use cases delivers the highest level of targeting efficiency and relevant messaging.
When looking for the next step in your digital transformation, consider a powerful, integrated delivery channel that leverages a financial institution’s enriched transaction data, measures campaign success through end-to-end attribution reporting, closes the time gap, and delivers a conversion-rich form of digital marketing.
The Time is Right Now
Data-driven strategies are no longer optional for financial institutions, and they are not as hard to achieve as you may think. First-party transaction data holds a wealth of valuable insights that can help any FI improve its bottom line through product adoption and engagement. If FIs want to remain relevant and competitive in 2022 and beyond, it starts with the Right Audience, the Right Tools and the Right Marketing Channels all powered by using data insights holistically and intelligently.
3Ad Age Marketing Fact Pack 2021