Attention banks and credit unions! Changes in what members and customers want and need from their financial institutions are coming.
That’s why our bank and credit union research company has compiled a list of marketing ideas financial institutions can and should use for 2020.
The Impact of COVID-19 on the Financial Industry
Before COVID-19, interest in fully optimized and easy to use mobile and online banking was already increasing. Now, with the demand for limited person-to-person contact, digital banking trends will only progress.
What does this mean for bank and credit union marketing? It means understanding exactly what customers and members expect, offering better mobile and online banking services, and providing regular communication.
Before making changes to your current marketing strategies, financial institutions should rely on member and community data.
Here are 4 different marketing ideas our bank and credit union market research company have shared with our financial clients so far in 2020.
Tip #1: Consider the anticipated 2020 trends in the banking industry
According to The Financial Brand, 2020 trends for the banking and finance industry will be focused on five key areas:
- Enhanced data utilization
- Improved digital services
- Advanced marketing
- Working with more platforms
The article also states complacency and the unwillingness to change the way banking has been done for decades are the biggest threats to the banking industry.
Now is not the time to bury your head in the sand.
It is time for banks and credit unions to take a strategic look at what consumers want from their financial institutions in 2020. The needs of consumers are likely to be very different from that of past years.
- Areas of satisfaction and dissatisfaction of your institution + competitors
- Most requested services or products broken down by generations
- Top factors of choice when choosing a financial institution
Tip #2: Make relationships with members/customers stronger
Fiserv reported building strong member relationships will be a significant focus among credit unions in 2020. The article points out members and non-members are consumed with noise and messaging every day.
This means credit unions will need to add new touchpoints with members such as:
- Downloadable resources
- Social media posts
- Text messages
The goals for these new touchpoints are to understand members, communicate relevant news/updates, and provide exceptional experiences.
In order to make the relationship with members stronger, it is important to understand what new trends are here to stay and rethink what drives a choice of bank.
Here are some topics our bank and credit union marketing agency recommend addressing with your members or customers:
- Will this digital transformation last or will customers go back to old habits? What are the concerns?
- How can we market through unique and relatable targeted messaging rather than generalizing?
- What would cause customers to switch to a different financial provider?
- How can we be more proactive and anticipate the needs of our customers?
Tip #3: The Amazon effect on banking
According to Fiserv, the Amazon effect on banking will be a trend in 2020. This means what customers expect from Amazon.com is what they expect from companies in other industries, even their bank or credit union.
A primary marketing focus for Amazon is its targeting capabilities, which presents specific products to certain people at the right time.
It uses precision and timeliness to enhance its marketing efforts and bond with customers, which ultimately helps the company succeed.
It will no longer be effective for banks to send a generalized email promoting their products and services to a mass contact list.
Where your financial institution marketing will see success in 2020 is by segmenting your audience based on demographics, geographics, household income, and more.
For example, members of your bank or credit union who are high school or college students or parents with high school or college students should be sent advertising messaging regarding student loans - while millennial members would be better suited to receive advertising messaging regarding home loans and current rates.
Perhaps your bank or credit union does not have access to this type of segmented customer lists. Learn how market research can help gather more effective customer insights to drive marketing strategies.
Tip #4: Move away from a “one-size fits all” mentality
2020 marketing and advertising trends developed by Fiserv reported banks and credit unions are moving away from the one-size-fits-all mentality.
Their goal is to attract younger customers and members. To do this, financial institutions are focusing on improving their relevance and making products and services more accessible.
Younger audiences, in particular, want to see their bank/credit union help them achieve financial health and independence.
How does this compare to younger generations living in your target market? Conduct a non-member survey to find out.
Here are three main benefits of conducting a non-member community survey to help driving your 2020 marketing strategies:
Drive Research is a banking market research company that works with local, regional, and national banks and credit unions across the country. Our services including both qualitative and quantitative market research.
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