7 Retail Bank Marketing Trends
Often criticized by marketers as being behind the times, big and small banks are increasing their spend on marketing tech, data-driven techniques and content marketing.
So finds David Goodman in a piece he wrote for Everfi on Friday.
Here are the current marketing trends among retail banks:
Retail Banks Are Investing in Marketing Tech
“Marketing technology comprises about 22% of the average bank’s budget, according to the ABA,” Goodman writes.
That’s an increase from previous years, he says. And notably, community banks are joining the trend.
Retail Banks Are Counting on Gen Z
Surprisingly ahead of the curve on this one, retail banking organizations are marketing to Gen Z — even as many marketers are still concentrating on reaching Millennials.
Goodman characterizes Generation Z as being comprised of 6- to 23-year-old consumers in 2018 who are tech-savvy and “starting to graduate, manage finances, earn disposable incomes and, by 2020, will account for 1/3 of the U.S.”
Data Backs Marketing Efforts
Retail banks have a lot of data about their customers. That’s where it gets into the realm of having too much information to do them any good.
So Goodman says retail banks are now organizing useful data, sorting it into personas and creating relevant messaging for customers.
He writes: “Banks are also gathering more qualitative data than ever before, discovering the benefits of tracking behavioral patterns, motivations, financial goals, emotional responses, etc.”
SEO Means Consumers Find the Bank
While Goodman makes the statement that organic search doesn’t cost anything, there’s quite a bit of professional time that goes into creating an effective online presence.
He writes: “55% of customers looking for new banking products begin by searching on Google. A strong online presence is crucial to staying competitive and banks are becoming more aware of that.”
Content Creation Is the Essence of Content Marketing
Goodman says reaching Gen Z means content creation. They know content curation when they see it, and they’re not impressed.
Previous Target Marketing articles get into how financial services marketers are using educational content to find consumers where they are with what they need, in order to solve their problems.
Goodman says: “Producing compelling original content (rather than depending on outside sources) is critical in boosting your institution’s relevancy, credibility and consumer engagement.”
AI Is Retail Banking’s Future
Gen Z will use chatbots to interact with customer service 24/7 and will expect everything from checking account balances to bill-paying options, Goodman writes.
“It’s predicted that by 2020, 85% of consumers’ interactions with businesses will not involve a human,” he says.
Staffing Up or Hiring Third-Party Experts
With all of the new efforts, retail bankers may find they don’t have the skills necessary, for instance, to be data scientists.
So they’re hiring new staffers or bringing on third-party partners to help them with the initiatives, Goodman writes.
“Banks are seeking new talent (copywriters, content strategists, digital storytellers, engineers, data experts) with the skillsets to pull off these complex marketing technology strategies effectively,” he says.
What do you think, marketers?
Please respond in the comments section below.
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