Your competition is increasing and it will be more difficult to market your offerings and services while meeting client expectations.
Financial services in the new digital marketplace isn’t all about checks and balances.
The financial services landscape is constantly growing and changing, pushing financial executives and their teams to venture into unforeseen and challenging territories. A decade ago, few people could have imagined that money management would be as easy as it is, and that the power banks hold in the lives of many people would soon be transferred to the customers they serve. Competition is increasing and many banks are finding it more challenging to differentiate their services from the services of banks down the street or even one click away.
Whether you are in banking, asset management, retirement accounts, or capital markets, ever-advancing technology has pushed banking to become more intuitive and easier by the day. Financial institutions are incorporating a wide range of features including 24/7 chatbots, artificial intelligence, and machine learning algorithms, all of which are aimed at making money management easier and more convenient.
As more and more customers shift to online banking, many banks are forced to shift online as well. However, it is critically important that customers get to know about the various services and products offered. To do this, internet marketing will come in handy. Here are a few reasons internet marketing is essential for financial services:
#1. The cost of customer acquisition
Nearly every industry will face massive costs involving customer acquisition. However, since financial services are typically based on building a high level of trust between clients and the bank or financial institution they choose, the acquisition cost per customer is generally far higher when compared to other industries. Sharing stories of existing clients and sharing insights about the future of finance and/or of your particular financial institution through social media platforms and blogs will help potential customers connect with your company’s objectives. Additionally, with social media networking sites such as Instagram hitting the 600 million users mark, it would be foolish to not utilize that kind of potential audience reach.
#2. Digital video ads
Within a year, several experts estimate that the number of digital video viewers will climb to 2.15 billion. Yes, that’s a whole lot of people.
Kent Lewis, the president and founder of Anvil said, “[The] growth of digital viewing is increasing at a slower rate than in previous years. However, it still offers a massive audience and marketing opportunity for brands. Unfortunately, many brands have yet to fully harness the ease of video capture via phones, GoPros and drones. Instead, they rely on more means of production. We see a big opportunity to train our clients to think about video capture, production and distribution across multiple channels and formats.”
Making a video that demonstrates the convenience and ease of use that you add to the financial services experience, along with a message from a satisfied client—could lead to multiple conversions over time.
#3. Collaboration with multiple companies
Bob Clary, Director of Online Engagement for Intellibright, said, “For every $92 spent acquiring customers, only $1 is spent converting them. This plainly shows that marketers are hyper-focused on gaining new customers but improving the conversion point is rarely a priority.”
With general acquisition costs being high, the internet offers a platform for collaborating marketing campaigns and efforts with other companies. Not only does this offer a chance to network with other companies, but both incur less costs and can multiply your company’s reach.
Internet marketing plays a huge role in shaping a company’s path toward success. It is critical that you take the time to do research and implement solid practices that could lead to long-term ROI. If 98% of your potential clients are online, that is where you should be as well.