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Digital Marketing Strategy for Financial Services

Surjeet Thakur - Google Adwords Expert Chandigarh India

Surjeet Thakur

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Digital Marketing Strategy for Financial Services – Online financial services market to hit Rs 15k crore by 2020. Globally, the fintech industry saw investments of $22 billion in 2015, up from $16.5 billion a year earlier.The US accounted for about 70% of the investments.

The finance industry is by far the most competitive sector on the internet. Premium search results are littered with high street banks, superior websites and black hat ninjas.

When it comes to finance, dominating page one on Google can be a frustrating minefield. However, get it done right and you can reap the rewards of a highly profitable campaign.

Though the investment figures in India are still small, the number is expected to go up by 2020 as more Indians have access to the internet and smartphones.

Contact us for more details: 9915337448, skype:oli-jee

The rise in digital technologies is transforming how bank marketers can reach, engage and deliver value to their customers. With a proliferation of media channels, financial marketers must understand these new digital tools and be in a position to implement digital strategies that add value to the marketing mix and integrate with already established marketing and business practices.

Digital marketing strategy definition for Financial Services

A digital marketing strategy is a channel strategy which means that it should…

  • Be informed by research into customer channel behaviour and marketplace activity = intermediaries, publishers and competitors
  • Based on objectives for future online and offline channel contribution %
  • Define and communicate the differentials of the channel to encourage customers to use it,
  • BUT, need to manage channel integration

So put another way, digital marketing strategy defines how companies should:

  • Hit our channel leads & sales targets
  • Budgets for Acquisition, Conversion, Retention & Growth, Service
  • Communicate benefits of using this channel – enhance brand
  • Prioritise audiences targeted through channel
  • Prioritise products available through channel

SEARCH ENGINE OPTIMIZATION

  • SEO (Search Engine Optimization) is the process of optimizing a website in order for it to rank higher in Google and all search engines. In the competitive dental market it is more important than ever to find and implement the most cost-efficient marketing strategies.
SEARCH ENGINE MARKETING
  • Search engine marketing (SEM) combines several marketing strategies, including SEO, to grow your dental office online. Search engine marketing (SEM) goes beyond first page visibility through the utilization of the following services;

SOCIAL MEDIA MARKETING

  • Facebook, Twitter, LinkedIn, Pinterest, Yelp, and many other social networks are exposing patients to the variety of small businesses available to them. Very few doctors take an active role in becoming experts and leaders for people interested in dental services on the social media sites listed above.SOCIAL MEDIA OPTIMIZATION
  • Our team uses a number of social media outlets and communities to generate publicity and increase the awareness of your dental office. Types of social media include RSS feeds, social news and bookmarking sites, as well as social media sites, such as Twitter, Facebook, Youtube, Google+, along with many other video and blogging sites.

Why is Digital Marketing Important for the Financial Services Industry?

Financial services is a very Internet-centric industry. People go online to research credit cards, find the best interest rates, look for investment advice, and so much more. Your audience is already on the web, so it’s extremely important to be there with them. If not, your potential customers may never even know your company exists!

SEO gives you the best chance at connecting with the people who need you the most. The higher your website rises in search engine rankings, the better chance you will be found. And if your website meets the needs of the people who visit it, and has a modern design that is mobile-friendly, you have a great chance at being the company they contact.

Marketing Analytics are Critical

Trend
The Financial Service industry was an early adopter of technology that brought customer data together. However, firms have struggled to cope with the recent explosion of data from website behavior, social media interactions and other digital channels.

Customers want their Financial Institutions to be proactive and provide personalized attention.  Most firms already have the data, but they struggle to harness it to deliver the right offering to the right customer at the right time.

Opportunity
Firms can combine CRM data with marketing analytics, and then use automation to systematically up-sell, cross-sell and nurture, based on the insights gathered.

Also, firms can use their analytics to refine targeting for online advertising to increase the related ROI.

Social Media for Financial Services

Trend
Social Media is now an integral part of daily life, however Financial Services firms have been slow to adopt social media marketing, fearing reputation risk and perceiving a lack of value in social marketing.

Ignoring the power of online word-of-mouth is no longer an option. In a world where a complaint from an annoyed customer can go viral in less than 24 hours, social media has to be taken seriously.

Financial Service firms have been playing catch-up in the last few years. In fact, their presence on social networking sites saw 31% year-over-year growth, way above average.

Opportunity
As 59% of customers are unaware of their firm’s presence on social media, there is plenty of room to gain a competitive advantage.

  1. Marketing of Financial ServicesOne of the major problems facing the promotersof financial services as opposed to tangibleproducts, is that services cannot be experiencedin a tangible manner.Services cannot be:(a) touched,(b) tasted,(c) handled, or(d) purchased in bulk like tangible products.
  2. Marketing of Financial ServicesThe Acronym (HIPI) will help you remember thecharacteristics of services.HeterogeneityAlthough all bank branches sell the same services, thestandard of service is not uniform from branch to branch.Service marketing relies heavily on the individual sellingthe service.It is this individual who is judged as the “bank” rather thanthe underlying service being sold.Hence, marketing manager must pay great attention to:product knowledge, sales training, selling skills andinterpersonal skill of the seller.
  3. Marketing of Financial ServicesIntangibilityMarketing of financial services must necessarily stress theBenefits because services cannot be touched, tasted or inAny way experienced by the senses.While a service may have some tangible representationslike: cheque book covers, bank statements, plastic cards,these represent only a small part of the intangible service.Purchase of financial services often involves a highlyemotive decision.Different services also present a different level of risk tothe customer.e.g current account may be considered low risk mortgage account may be considered high risk.
  4. Marketing of Financial ServicesPerishabilityServices are highly perishable since they cannot be stored(e.g. time when sales persons are not serving customers cannot be utilized to expand service at peak periods.)Demand for services fluctuates from day to day, week toweek, month to month, especially for branches in touristareas.
  5. Marketing of Financial ServicesInseparabilityMost of the time services cannot be separated from thesales consultants (e.g. investment advisor, corporate manager).If a customers need investment advice, they must go toan investment advisor duly authorized by the bank toprovide an advisory service.Services are frequently created at the time they are used,unlike the tangible products, which must be producedbefore they can be sold to customers.
  6. Marketing of Financial Services A bank without a formal planning process is like a ship without a destination. Quotation: “A bank that fails to plan – is planning to fail”. Any commercial organization, which fails to plan its future will quickly become out of touch with its environment, thus leaving itself vulnerable to competitor activity aimed at gaining a dominant place in the market.
  7. Marketing of Financial Services The value of planning lies in the bank or financial institution, being in a position to control its own future. This is principally due that the bank should be in constant touch with a fast changing environment. A systematic appraisal is developed and incorporated in a written plan, which will provide continuity of thought and action from one year to the next.
  8. Marketing of Financial Services(a)Executives are forced to set corporate objectives thus providing guidance for the bank’s operations(b) Planning identifies the resource needs of each activity, balances these needs against available resources, and allocates these resources in the most efficient way,(c) A good planning process should make all staff more aware of their own roles and responsibilities(d) A formal plan forces banks or other organizations to considers its own Strengths, Weaknesses, Opportunities, and Threats (e.g. SWOT Analysis).
  9. Marketing of Financial Services (e) A good plan will enable a bank or financial services provider to identify the customers’ needs and wants, thus enabling the bank to build strategies for any profitable segment identified, (f) The bottom line of any planning process is to monitor new development in the business environment, and try to be in control.
  10.  Marketing PlanFinancial Human Plan Resources Plan Risk Management Plan
  11. Marketing of Financial ServicesWith the growing level of competition, and the rapidpace of change, banks started to focus their attentionon strategic planning,Marketing plan emerged as an essential tool in theoverall strategic plan,In spite of this new development, some traditionalbanks remained with the “old banking businessconcept” instead of employing modern managementbusiness skills within the banking business.Unfortunately, some traditional banks went out ofBusiness earlier than expected.
  12. Marketing of Financial Services1. Mission Statement It states the overall purpose of bank or any organization.2. Key Objectives Objectives are cited for variables such as: (a) financial return expected, (b) degree of efficiency required, © size of loans or credit on offer, and (d) service quality3. Market Assumptions These contain explicit statements about future trends in strategic market segments, which may affect the bank’s freedom to act.4. Competitive Strength Evaluation An evaluation exercise of the strengths & weaknesses based on factors such as: ( relative costs, service quality, and market share).
  13.  Marketing of Financial Services5. Assessment of Opportunities The plan should assess the threats and opportunities for each market segment. This is important in order to achieve the mission & objectives6. Market Portfolio Strategy The plan must identify the desired investment strategies for each of the markets in, which bank units participate and the objectives to be attained for each.7. Strategic Changes Objectives & goals for action plans stating changes in capabilities or resources under the control of unit management and selected as most likely for achieving the desired market results.8. Action Plans for Implementation Specific programs including measurable goals, events and timing, which result in the changes specified in action plan objectives.
  14. Marketing of Financial Services 9. Expected Financial Results These include the anticipated financial outcome in terms of revenue, profits and return on assets for the units. 10. Project Review or Evaluation Realistically, with a every project concept, there should be a review or evaluation with the intention to assess its result.
  15. Marketing of Financial Services Mission Statement Key Objectives Environment Competitive Assessment of & Market Assumptions Strengths Evaluation Opportunities Market Portfolio Strategy Strategic Changes Action Plans For Implementation Evaluation Process Action Plans For Implementation
  16. Marketing of Financial Services he banking industry around the world has been hanging very rapidly since the early 1970s. he industry has experienced a substantial changn competitive conditions as a result of a number f factors:►the industry tended to go international, led by the leading US commercial banks,► new competitors entering the financial services market new approaches to servicing corporate clients► new capital markets emerged – as a result transformed traditional funding of banks & MNCs► a wide range of sophisticated products were introduced under “packaged sales”
  17. Marketing of Financial Services ►in response to competition, banks reacted and began to build up their own multi-national presence through their own brand name, ►banks began to channel their marketing resources towards diversification, ►by the end of 1970s, banks’ operations had become more complex with the range of services on offer, ►while margins on lending were eroded through competition, fee-based services were increasing, ►non-bank financial institutions were also providing financial services – hence, more competition, (e.g. General Motors, Shell Co, American Express. Large stores, and Supermarkets)
  18. Marketing of Financial Services ► new information technology (I.T.) impacted on the operations of the banks and became one of the key drivers, (e.g. back office became automated), ►savings and loans associations initiated interest- bearing transaction accounts and brought direct competition to commercial banks, and ►professionals like accountants, lawyers, real estate agents, financial brokers, asset managers also offered financial services.
  19. Marketing of Financial ServicesIn the 1980s the banking industry experienced anacceleration in the pace of change in both:(a) retail, and (b) wholesale market.Retail Banking→ Increased Segmentation of Consumer Groups and provided Specialist Private Banking Services (e.g. rich individuals, High-Net-Worth customers)→ Stratified Accounts (e.g. personal loans, credit finance, insurance products, 1st & 2nd line mortgages, deposits FD & S/Term)→ Replacement of Paper-Based Accounting Systems,→ Increased competition for loans and deposits
  20. Marketing of Financial Services Wholesale Banking →Competition Intensified- banks continued to strive for competitive advantage and in doing so cancel out one another’s efforts, →MNCs became stronger in their demands by negotiating their own interest rates and cost of services from banks, →Japanese banks took the first 5 top positions in the international banking league, →New development in I.T change the banks’ approach to the consumer, wholesale and corporate markets, →Increase competition from non-bank institutions (General Motors, General Electric, American Express, Merrill Lynch, and other major credit finance companies)
  21. Banks portray themselves as a “One Stop Financial ServicesCentre”.Banks no longer remain in their traditional service market.They are now more aggressive in providing a full menu ofservices that will cater for its customers’ needs.The competition is so fierce that they can offer any type ofservice provided their customers are satisfied with the speedefficiency & costs involved.Banks in certain industrial countries are now mobile in sucha manner, that they will visit you at your doorsteps.Technology is one considered as one of the key drivers thatenables banks to cope with the intensity of competition.
  22. Overdraft,• Fixed Rate Short Term Loan,• Acceptance Finance,• Multi-currency Lending,• Hire Purchase,• Tax Leasing,• Leverage Leasing,• Parallel Loans,• Commodity & Stock Loan,• Variable Term Loan,• Syndicated Loan,• Secured Equipment Loan,• Merchandise Loan,• Property Construction Loan,• Merger & Acquisition Finance,• Mortgage Finance Loan.
  23. International TransfersDomestic Transfers
  24. EFT transfers,• Cheques, Bank drafts,• Banker payments, – International cheques,• Standing orders instruction,• Credit transfers,• Bank-to-bank transfers,• Direct debits, Commercial Credits Clean credits, Documentary credits, Import & Export credits.
  25. Trust Services Consultancy Services Executorships,  Invoicing centres, Share registrars, Treasury management, Safe deposit services,  Pension Fund advice, Estate planning, Insurance Man advice, Tax planning,  Forex forecasting, Life insurance,  Training in finance, and Trusteeships, Financial plan & money Shares & Bonds purchases, management service. Pension fund management, Corporate trustee services, Investment advice, and Dividend payments.
Contact us for more details: 9915337448, skype:oli-jee
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