The banking industry is still recovering from the Great Recession. While several large companies battle for national dominance, smaller regional and super-regional banks are looking to make their mark with consumers. Acxiom researchers call the current business environment the new normal and they have some advice for banking CMOs.
The biggest challenges faced by smaller banks today are:
- Differentiating themselves to consumers
- Making use of big data for marketing
- Improving the marketing ROI
According to Acxiom, some banks are going about their marketing in all the wrong ways. The current strategy allocates budgets by number of accounts, visits and households. At the same time, the number of consumer channels in banking and the number of marketing channels are both increasing. For example, the ‘personal touch’ factor is fading as a way to make an impression on customers. This is because 60–80% of consumers are interacting with ATMs or doing their banking online.
To improve their connections with consumers, banks can engage online, especially through social channels. As has happened in many other industries, senior banking executives are feeling overwhelmed by the “digital data overload.” But properly using this data could lead them to excel in using “geo-location and social media data assets.”
Banks historically relied on traditional ad agencies to make their media buys. Today, because the product mix and customer interaction is so varied, banks require specialized expertise to review incoming data and then determine ‘effective media mix models’. Not surprisingly, this new approach also means that CMOs will implement better online and mobile campaigns. Each campaign must also be measured and considered alongside campaigns in other channels.
The bottom line is that banking CMOs plan to execute improved customer lifetime value (CLV) solutions by focusing on the best customers and, in doing so, they will adjust their marketing strategies to the digital, conversational format and away from the one-way broadcast format.
Banks may also want to target Potential Bank Switchers with their new marketing campaigns. To learn more, check out the Audience Attitude & Intent report available from Ad-ology.[Source: Marketing in the New Normal. Acxiom.com. 2012. Web. 7 Sept. 2012]