Strategies, Best Practices and Thought Leadership

Maximize Your Potential with Data Analytics & Omni-Channel Marketing

Over the last five years, total deposits at community banks and credit unions fell by 7.5 percent, while large, national banks experienced big gains. Consequently, without deposits, community financial institutions are further challenged with having the capital to fund loans. Overall, they are losing out to their competitors.

This challenge is further compounded by outdated marketing strategies and the decline in human conversations. Widely known, foot traffic at branches is at an all-time low, as evidenced by the massive branch closings across the country.

Additionally, smartphone penetration rates are rising. According to Pew Research, the vast majority of Americans (95%) own a cell phone of some kind, with over three-fourths (77%) owning a smartphone.

It’s not surprising then that landline phones are a dying breed. In fact, the National Center for Health Statistics (NCHS) reported that more than half of homes (52.5%) had only a wireless service in the first half of 2017. While that still leaves half of U.S. households to call on, the number of landline owners substantially diminishes with age. Nearly 65 percent of those ages 18-24 and just under 65 percent of those 35-41 are wireless-only. Moreover, of those still clinging to their landlines, they screen their calls now.

With deposits declining, coupled with fewer opportunities to actually speak and sell to prospective customers, financial institutions must adjust their marketing approach.

 

Market More Effectively with Powerful Data & Analytics

Financial institutions can no longer rely on the marketing tactics of the past. First, it is critical to make decisions based on data; not guesswork. This is possible by leveraging existing data, whereby banks and credit unions can then segment customers and members based on profitability. From there, they target their most profitable customers with top-of-mind campaigns, thus boosting sales and retention while also improving the relationships.

Consider getting a cold call from a solicitor on something completely irrelevant to you – you’d probably hang up. But what if you received information on a service that you actually need or that solves a pain point. This approach is achieved by harnessing data already available to you and then analyzing it to enhance your marketing strategy.

 

Achieving a True Omni-Channel Marketing Strategy

But there isn’t one communication channel anymore. Consumers jump from device to device daily, making it critical that financial institutions consider a true omni-channel approach. This is especially the case as digital becomes more prevalent. As said earlier, consumers are no longer walking into branches and they’re not answering phone calls.

However, even as we move into a digital-centric world, it doesn’t mean email and direct-mail campaigns should be tossed out. These marketing tactics can still prove beneficial, but they are even more powerful if paired with a more holistic approach that crosses multiple channels.

Ultimately, it’s about being more strategic and leveraging data for a more intelligent marketing strategy.

 

Smarter Marketing Leads to Greater Efficiency

Additionally, financial institutions are further challenged with limited time and resources to engage with every customer or member. It’s just not possible.

However, leveraging data to create a more strategic, intelligent marketing approach helps financial institutions dedicate the right amount of resources to the right audience. If you know who your most profitable market is, you can focus there. If you know what products are most desired and most profitable, you can dedicate more of your marketing efforts towards those.

There is a dire need for financial institutions to grow deposits. The challenge is how to get in front of customers when no one is going to the branch and no one is answering their phone. The answer is data analytics and a smart, omni-channel marketing strategy.

By leveraging data, financial institutions can better determine which accounts are profitable and which need nurturing so they can effectively identify and communicate to key target markets. This will become even more crucial in the years to come.

Topics: Analytics, Market Trends, Marketing

Baker Hill

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