In the wake of the widespread digital migration during the pandemic, financial marketers have learned to reinvent their campaigns to support this continuous change, along with a renewed emphasis on personalized financial advice and wellness tools, and spikes in consumer spending on e-commerce.
More importantly, they were challenged to improve the agility of their marketing production processes and develop martech stacks that allow faster access to data to enable real-time business decisions.
A new type of credit card customer is emerging
The pandemic has caused consumers to rethink their relationship with credit card debt. As unemployment rose, discretionary spending declined and many consumers used stimulus checks to pay off their credit cards. This had a significant impact on average consumer debt, with overall credit card balances down 14% at the end of 2020 from 2019. It was the first time in more than a decade that Credit card companies were experiencing this type of decline.
When people used their credit cards, spending categories reflected more convenient and digital trends, such as a greater reliance on Amazon and other e-commerce options for everyday goods. Card companies have introduced new benefits and rewards to respond to this change, including offering credits and accelerators on daily purchases, digital subscriptions and delivery, and points to co-branded travel cardholders for customers. non-travel related purchases.
To retain customers as spending continues to scale in 2021-2022, card companies are offering more flexible perks and rewards, such as allowing customers to redeem miles for purchases in new categories like streaming. and delivery or reimbursement in the form of statement credits. While the benefits of travel, rewards, and partnerships are expected to return – some have already done so – they will likely play a lesser role in the overall value proposition of many credit cards.
Financial services marketers will need to adjust marketing campaigns to introduce new credit card features, educate and engage customers with new benefits and rewards, and clearly demonstrate the value of the credit card to consumers, by clearly demonstrating the value of the credit card to consumers. especially co-branded travel cards and premium cards with an annual fee. Some marketing tactics to achieve this:
Replace “one size fits all” content in marketing campaigns with a message tailored to customer behavior. Has a consumer’s card usage slowed down since new benefits replaced old ones? Content that explains and reinforces the value of these new benefits may be appropriate. Has another consumer ever taken an interest in the new benefits you are marketing? This is a great opportunity to show them the value they have already gained by now, to further encourage their future use.
Reinforce the value of the card throughout your marketing touchpoints. Don’t wait for a customer’s renewal anniversary to send a message quantifying the value the card offers – earned rewards, statement credits, and other perks. Although they are typically sent when a customer’s renewal date approaches, these reminders should be included throughout the lifecycle. A monthly email with a summary of the card’s value or a persistent banner highlighting the value the customer has seen to date are great ways to do this.
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Growing relationships with retail banking clients
During the pandemic, Google searches for topics related to the recession and debt and phrases such as “forbearance” and “cannot pay rent” have skyrocketed across much of the country. Now that the economy is recovering, many banks and credit unions have focused on growing the checking and savings customer base by incentivizing premium deposit products or turning them into multi-relationship consumers through the cross-selling.
Marketers will be at the heart of this, deploying sophisticated marketing campaigns that leverage personalized offers that match the unique needs of an individual customer. A few tips:
Consider real-time customer needs and behaviors. Develop a set of automatic “always-on” 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 viewed loans on your website. Or deploy an in-app suggestion for a checking account that includes overdraft protection after a customer bounces.
Extend “next best action” and decision engine capabilities beyond your website and into customer relationship management channels such as email and mobile. Most financial services brands take advantage of advanced decision engine technology on their websites to display recommended offers or the next best stocks in real time. Consider investing in building APIs that can convey this decision to other channels.
Generate more business with powerful digital and mobile users
Mobile banking experienced a renaissance in 2020 and the number of app users is expected to rise again in 2021. Financial consumers are demanding a seamless omnichannel experience more than ever. Now, marketers are tasked with converting mobile customers into regular users, where their value as customers increases. Personalized marketing campaigns can help new banking customers set up their mobile app and integrate without having to visit a branch or even a website.
Here are some ways marketers can empower powerful digital and mobile users:
Encourage regular connections to applications by enriching push notifications using “rich push” technology. Such notifications allow marketers to include personalized images and content in notifications, exceeding the engagement seen on standard text-only notifications.
Proactively display engaging offers and reminders in the app using built-in interstitials. Banking apps contain valuable reminders of account benefits or available offers, but they are often hidden deep within the app interface, making them difficult for the customer to find. A tactfully integrated and personalized interstitial highlighting this content can encourage customers to repeatedly log in to the app.