The evolution of digital marketing has outpaced the financial sector in recent years. The industry has been slow to transition to the digital demands of today’s modern consumer. Banking and insurance are highly competitive markets with products perceived as interchangeable. Consumers view financial products the same as the next, regardless of where they are offered. A checking account is a checking account and a mortgage is a mortgage. Due to this commoditization, brand loyalty is less meaningful to consumers when it comes to where they do their banking. In a recent study, only 8% of those surveyed said they had faith in their financial institutions. This lack of trust in the finance sector is yet another obstacle for those trying to connect with their target audiences. In highly regulated industries like finance and insurance, Brands have to deal with oversight groups like the Federal Trade Commission (FTC) and the Financial Industry Regulatory Authority (FINRA), putting further restrictions and timelines on financial marketers. While these challenges may seem insurmountable, there is a digital marketing solution to them all.
Financial service companies need to change the perception of commoditization in relation to financial products. Companies need to set themselves apart and distinguish why their products and services are better than those offered by the competition. Financial products are intangible offerings and what companies are actually selling is the idea or concept of wealth growth and security. By utilizing programmatic advertising tactics, businesses can personalize messages to existing and potential clients showcasing the uniqueness of their brand and how they can help consumers grow their wealth while protecting their assets.
Build trust with consumers by being transparent while focusing on the customer experience. Gain brand loyalty and recognition by highlighting the stories of your real-life customers. Detail how your products and services have helped them succeed. Data analytics can provide key insights into how consumers are interacting with your brand. Customer testimonial videos strategically placed on the right digital platforms will grow brand recognition and trust.
Provide consumers enablement content pushed through your social media channels. People need sound financial advice and expertise. The National Foundation for Credit Counseling found that only 25% of U.S adults would turn to a bank or credit union if they needed financial guidance, a number on the decline in recent years. However, 35% of adults would have no problem trusting a financial planner or accountant. What is your target audience in need of that you can give them? For example, State Farm Insurance did a series of articles on Safe Teen Driving that went viral on social media. Giving information on the cost of potential repairs that are covered by your insurance products or how to prevent home catastrophes from happening is content that helps people and builds trust. Promoting this content through automated tactics will increase ROI and improve coordination between branches on timely ad campaigns.
Regulations can put restraints on your marketing plans and timelines in the financial world. Begin by establishing a good relationship with your compliance team and asking someone from legal to sit in on an editorial or marketing meeting. Train your team to know the ins and outs of regulatory guidelines and create your workflow around approval timelines. Remember you need to keep your message in compliance, but you are free to be as creative as you like with how you share it! Craft your content to fit with regulations and your brand message. Highlight video testimonials, free financial calculators, and the content your target audience is looking for through the social platforms they use.
For more advice on solving the marketing challenges of the financial sector, contact one of our digital experts at KeyMedia Solutions today. We have the answers to all of your digital marketing questions.