Let’s face it some industries can be pretty slow to catch up with every kind of technological breakthrough. And each time, the reasons are as various as the technology itself.
Marketers in the financial services industry are one example. Long have they been challenged on the authenticity of released information, poorly-executed strategies, and other failed opportunities.
But now the industry is now has broader strategy aimed in engaging customers with social media playing a large part of it. This had essentially reshaped the way financial service companies marketed themselves and how effectively they were at executing it.
Consumer technology though is still moving at a relatively fast pace. In contrast, the financial services industry has been extremely slow in modernizing their marketing in step with changing customer behavior. Many companies are still ignoring trends at their own peril. Here are just some of them:
Properly Utilizing Customer Data
Strategies like mass-direct mailing are still being used by financial firms without concern for any negative impact on marketing. But with targeted data (such as what is found on social media) banks can move away from excess mass-marketing and target prospects based on their specific needs. Financial firms can use social technologies to identify prospects based on events like mergers, job promotions, career changes etc.
Customers who interact with companies on Facebook, LinkedIn and other networks are likely to buy up a relatively large percent of their products. As financial companies remain sluggish in applying social media, more and more consumers are now connecting with their banks over it.
For example, while many prefer banking online, integrating social features could increase customer loyalty over time and lengthen the amount they spend on transactions.
Lowering customer acquisition costs
New customer investment has been a major cost to financial institutes. Banking, insurance and social technologies can actually reduce the cost of customer acquisitions if used together and with the goal of improving marketing activities. This can mean fewer but more targeted ads as well as more focus on prospect engagement.
Social media is but one of the technologies that are being overlooked by those in the financial sector. This doesn’t mean you should do away with current processes used in your lead generation campaigns. However, the information being made available should be used to inform them and reduce costs.
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