It can be challenging to equate marketing and finance - but the necessity of promotion knows no bounds. Even in the financial sector, you don’t want to be overlooked by potential customers in favour of your competition. To stay in the game you need to establish a presence aimed directly at your target audience, but in order to do that, you must first understand and overcome a few specific barriers that stand in the way when it comes producing a successful marketing strategy for this niche.
It has been cited that more than 90% of millennials, in particular, don’t trust banks. Reasons for this are vast, spanning past economic crisis’ and a general lack of understanding for the institution. Therefore when you are developing your marketing strategy you need to instil a foundation of trust to bring in new customers.
Despite the above-mentioned mistrust percentage, that same group of under 37’s are the highest users of challenger banks. Monzo, Revolut, Starling, being the most popular mobile-only digital companies whose structures break away from traditional banking norms.
What allows the sceptical generation to have confidence in these new companies over the likes of ones that have been staples for generations? Well, when Monzo first launched it ran with a mostly word of mouth marketing campaign. There was a weeks-long waiting list to get Monzo which was only skippable if someone you knew shared a code with you.
The exclusiveness of the list drew attention and on top of that, if your friend was telling you to get Monzo then Monzo was trustworthy. The brand themselves didn’t have to jump through hoops to prove themselves to their customers, their product did the talking and the organic praise saw their brand skyrocket.
70% of young people will exclusively manage their finances digitally in the next three years. The need to go into your local branch is fading, and as such, financial services need to embrace that change.
It’s not about competing with the likes of Instagram, Twitter, Influencers and trending hashtags, it’s about understanding what your customer’s digital habits are and finding a way to express your core values in a way that will reach them and they can engage with.
e-Wallets such as Apple Pay and Google Pay saw how people were using their mobile devices more and more. From the boom in social media to how we communicated with friends from voice notes to Facetime, and being able to access work emails, play games and read all on the same piece of technology.
It made sense that then people should be able to use this same device in a transactional way that didn’t require them to pause all the things they were likely doing. The implementation of digital wallets in our everyday lives was a smooth process that saw very little advertisement because it felt like that natural next step, moving away from the physical and into the digital.
Understand where your audience is (predominantly online) and what they want (something easy), when building your marketing strategy. This will see you reaching new customers in a way that feels harmonious.
Roughly 24% of people aged 17 to 34 have an understanding of finance - that leaves a staggering 76% of the younger generation that is in the dark.
To close that gap, financial groups need to find a way to communicate with their customers in a manner that doesn’t leave them bogged down with incomprehensible jargon, disengaging them altogether.
You’re more likely to draw in new customers if you show that you speak their language. Create copy that is easily understood by those with a basic or limited understanding of finance. If you try to reach and communicate on their level it allows for you to establish trust.
Barclays Money Mentor campaign saw a series of IGTV videos aimed at simplifying saving and budgeting. By using Instagram as a platform they saw where their audience were and went directly to target them in an informal but informative way.
The practice of paying customers to switch banks is a great way to both gain and lose many people who have zero loyalty to a single financial institution.
The issue is that to the everyday person, one bank, cryptocurrency wallet or investment portfolio is the same as any another. In order to distinguish your brand, you need to personalise it so it stands tall in that sea of sameness.
There are a plethora of ways to do this; Lloyds Banking Group has their jet black horse as a mascot, Monzo has their Coral (not pink) cards and American Express is a household name due to its illustrious Black Card and the lure of benefits associated with banking with them.
Show your customers that finance isn’t just about the numbers, it’s caring about the people you represent, it’s about staying on top of social issues and having a stance. Often it’s not about the biggest and most expensive marketing campaigns that will gain loyal customers, it’s about being honest with your customers and establishing a relationship they won’t want to break from.
From startups like Monzo to established brands like American Express the financial services have come to accept the importance of tailoring their voice through their marketing strategies to reach a wider more hard to capture audience.
See inspirations here: