For small business banking, banks need to develop such an infrastructure and offer to support financial data driven personalization that is multi-channel, timely and consistent. By operating through all these lines, we can achieve greater customer satisfaction.
Small business owners are increasingly demanding much more from their banking provider i.e. more tools, more guidance and more automation. Banks use the following digital marketing strategies in order to attract and engage with potential small business owners-
- Define and segment customers based on psychographics such as behavior, attributes and action.
- Utilize social media platforms for communication.
- Implement email marketing campaigns.
- Leverage data analytics to measure performance.
Digital marketing for banking Industry
Banks use digital marketing to provide a better customer experience to build trust and increase loyalty with their customers. Today if someone wants to do any banking transaction, he can straight away do digital banking services using a smartphone without visiting a bank branch. According to a survey, most customers who are satisfied with banking apps are more likely to stick with the bank.
Why Personalization for banking is important for small businesses
According to a study, most leaders believe that personalized products and services help in nurturing greater customer loyalty. Banks are continuously using data analytics for customized customer experiences.
- Increase in acquisition of customers – In today’s scenario, competition is not only about gaining customers but also increasing ROI by offering something special in the digital world. Banks now spend money on paid ads and various referral programs. Rising demand for personalized experiences which small businesses expect from their first interaction with the bank needs to be addressed. For example- banks offer various digital marketing solutions such as data from ads and social networks enables banks to tailor their websites to small business owners upon arrival.
- Building trust and loyalty – Acquiring customers is not the only challenge. Once banks have acquired a small business customer, then the bigger challenge is customer loyalty and maximizing customer lifetime value. As most small business owners want their bank to be proactive in providing relevant financial information, personalized offers are becoming a major factor in brand advocacy.
- Higher upsells and increase in revenue- Personalization plays a big role in driving sales and revenue. Banking personalization can reduce acquisition costs by as much as 50% and increase revenue by 5-15%. By understanding the needs and preferences of each business owner, banks can provide its products and services accordingly.
- Improve product adoption- By analyzing transaction data and user behavior, banks can find out the pattern by which customers are banking, banks can suggest the right products and services for customers.
Conclusion
The urgent need for personalization in banks is evident. Leading banks are already pursuing this transformation in customer interactions in order to make their business smoother. Banks that successfully implement this personalization strategy will gain a significant performance advantage.
