Financial Literacy Content Makes 18% of Customers Likely to Invest More
Financial literacy content may seem superfluous to some bankers. But recent research shows 18% of customers to whom financial services marketers offer financial literacy content and services say they’re more likely to return to that institution with additional business.
So says a Raddon Research Insights study summarized on Aug. 9 by The Financial Brand. Bill Streeter writes that financial institutions may be their customers’ No. 1 bank, but they’re not the only one — and financial literacy content and services can make them more loyal.
Financial Literacy Content and Services Appeal to a Small, But Mighty, Audience
Raddon shows only 16% of respondents participate in a financial literacy program, but that can be a valuable 16%. Five sources of information appeal to that 16%: No. 1 is their primary financial institution (55%); online sources come in at No. 2 (45%); and even though that adds up to 100%, the study respondents clearly visit other programs. Family and friends help them (39%); financial planners and advisors see 34% of participants; and only 7% bother with TV programs like CNBC and Fox Business.
“Many U.S. consumer households are inadequately prepared for unexpected expenses. While demographics like age and income play a role in this lack of readiness, high-income households are often unprepared, as well. Financial literacy is a key component to being better equipped and prepared for unforeseen emergency expenses and successfully navigating through life’s financial milestones.”
Financial Literacy Programs Engender Trust
Streeter writes that financially literate customers respond to the content marketing by:
- Believing their institution hosts literacy programs for the greater good and support of the consumer, and not for the company’s own financial benefit.
- Being more open to advice and guidance from their institution.
- Exhibiting higher usage in most savings/investment products.
- Showing lower lobby usage levels and are less likely to occupy a bank employee’s time.
4 Financial Literacy Content Marketing Tips
Streeter suggests financial services marketers:
- Don’t Wait for Customers to Be High-Net-Worth Individuals. Start your outreach early, when consumers are in the early stages of their financial life. This will not only benefit the individual, but will lay the groundwork to solidify your position as their primary financial institution.
- Offer Digestible Chunks. Whether offered in-person or online, multiple, smaller educational pieces of content or sessions will help avoid information overload. That may keep the consumer coming back for more information.
- Prioritize the Financial Literacy Content. Focus on the three most popular topics: financial planning, retirement and wealth management.
- Keep Providing Financial Literacy Content and Services. Don’t drop the ball, Streeter continues. “Follow through on what you started,” he says. “As your customers adopt what they have learned, reward them for their efforts and accomplishments.”
What do you think, marketers?
Please respond in the comments section below.
Related story: 5 Lead-Generating Financial Services Marketing Tips