Jan 12
31
Innovate customer interactions to strengthen loyalty
Consumers have their pick when it comes to choosing a financial institution and fees, services and products play a significant role in their decision. But the results of a new survey demonstrate that a customer’s loyalty may also be influenced by how financial institutions interact with them.
The study conducted by Bain and Company reveals that customers are likely to be more loyal to institutions that not only provide effective and fast services, but those that take a personalized approach to banking practices. Further, customer loyalty can translate into roughly $10,000 per individual over the life of their banking relationship versus customers who are not loyal, American Banker reports.
When it comes to driving customer loyalty, there are a few key actions that may influence a consumer’s decision.
1. Quickness and efficiency
Online and mobile banking are growing platforms among U.S. banking customers, but a large percentage of Americans continue to make the majority of their financial transactions at physical branch locations, according to American Banker. While this scenario is not harmful or damaging in and of itself, high in-branch transaction levels may slow down banking operations and customer service call centers, adding some frustration for consumers.
2. Level of service
Confronting customer issues, such as statement errors, loan rejections, fraud or lost and stolen debit cards also has a large impact on a customer’s loyalty, American Banker reports. These moments are likely to be emotionally-charged, making it imperative that staff is trained to adequately handle these crises and provide guidance and superb customer service to resolve potential issues.
3. Comprehensive services and technology
Providing a variety of mediums to communicate and transact gives customers more control and options when managing their day-to-day finances. Online banking, mobile applications, social networking pages and email campaigns can help banks build and foster stronger relationships with consumers.
Jan 12
25
Emphasize security, usability when introducing mobile platforms
As I’ve mentioned before, mobile banking is becoming one of the fastest-growing and most popular methods consumers utilize to manage their financial transactions. Although a sizable percentage of Americans rely on smartphones to complete their day-to-day transactions, experts say that mobile banking still has some challenges ahead to becoming more commonplace among users.
According to Javelin Strategy and Research’s Mary Monohan, mobile banking customers are using this platform in different ways, requiring banks and lenders to accommodate the shift and cater to different preferences. For example, Monohan notes that smartphone users prefer a more expedient and to-the-point visit when accessing their accounts, while those using tablets expect a more “interactive” and complete experience, she tells BankInfoSecurity.com’s Tracy Kitten in an interview.
Further, Monohan notes that educating consumers about mobile security features may be a significant step in attracting wary smartphone users to mobile banking initiatives. A separate study reveals that concerns over the security of mobile platforms were the No. 1 factor that may discourage individuals from adoption of this service. According to the study, 53 percent of respondents said they were apprehensive of security features.
“There’s a lot of misinformation out there and consumers are very curious about it,” Monahan told the website. “If you’re going to have a mobile-banking offering, you’ve got to have marketing efforts.”
There are a number of ways institutions can expand their mobile banking platforms and educate customers on its many features. Asking current customers about their perceived thoughts or experiences on mobile banking can be a good first step in knowing where to make changes. Using marketing strategies, such as email campaigns, social networking websites and traditional phone communication can also help banks extend more information about their particular service offerings.
Jan 12
16
It’s time to lose outdated marketing strategies
As 2012 gets rolling, marketing professionals need to realize that the dynamics of marketing are shifting, and that just keeping the same brand messages may not really work in our changing society.
Here’s a list of a few trends for 2012 from Leo Burnett Chicago which should shape the way financial brands frame their interactive marketing messages to reach new customers and retain current ones.
1. The nuclear family melts down
It’s no surprise that many of today’s families don’t follow the traditional structure of a husband, wife, white picket fence and 2.5 kids. More children are raised by single mothers or raised in a non-traditional setting.
In order to reach those families, the firm says companies need to show varied family images with their messaging in order for them to “ring true” with consumers.
2. Deals are now the new normal
With the expansion and popularity of Groupon and other coupon and deal websites, Leo Burnett Chicago says consumers have adopted a mentality that they shouldn’t have to pay full price for anything.
This kind of culture puts an increased emphasis on programs that reward customer loyalty and give personalized deals to people based on their individual interests.
3. Social media and mobile technologies are everywhere
It already seems like everyone and their mother has a smartphone and Twitter handle, and that trend is only going to continue next year, as the firm says 20 million more people will adopt smartphones in 2012.
Basic online and social strategies also aren’t good enough anymore. The report says consumers are looking for practical ways to use social media in their lives. Just having a presence and Tweeting occasionally isn’t enough.
Branding is about values–the core values that describe your bank and why it matters. Pseudo-branding is a change in appearance without a change in substance. We don’t want that.
What we do want is to implement those core values at every level of the organization. And how well the bank adheres to these core principles will create the brand, even if you don’t spend lots of money on advertising and design.
Consider Nordstrom. Sure, they have a logo and they advertise just like other retailers, but what are they known for? Exceptional service and high-quality merchandise.
When you walk into a Nordstrom store, you know where you are. It’s not flashy and glitzy. It’s not cheap and tawdry. It’s quiet, self-assured, understated elegance and somehow, you just know you’ll find exactly what you need and receive just the right amount of assistance.
That feeling can’t be created with advertising or a clever logo. It has to come from the top of the organization and permeate every corner of it, with employees, vendors, and partners committed to integrating it into their work. Imagine what could happen if everyone that does business with your bank leaves thinking, “that was a really nice experience.”
Logos, and Colors, and Fonts…
Where the rubber meets the road, so to speak, is in visually communicating the brand to the outside world. Logos, typography, and color palette are three of the tools you’ll use to do that.
A logo is an icon that represents the company, like the Nike swoosh. A logotype is the name of the company presented in a standardized typographic format. The third option is a combination of the two, for example McDonald’s.
We all recognize the “golden arches” and, although the company has simplified the design to just the arches, for years the name was incorporated into it.
An effective logo should be an image that is readily associated with the bank, accurately represents its core values, is recognizable, and is easy to reproduce on everything from stationery to outdoor signs.
For advertising and marketing materials, pick a couple type styles that work well together. Too many different fonts can create brand confusion. Choosing fonts for a logotype should follow the same guidelines, although you’re probably going to have to stick with a single font. Choose carefully.
Colors are easily as big a challenge as typography. You should be able to coordinate your core values with colors that represent them, but in color choice you’ll again have to rely on your designer for the subtleties. Just for fun, here is some very basic information on colors and their meanings to get started:
Red – One of the primary colors (along with blue and yellow), red symbolizes passion, danger, anger, energy, and primal forces. It is one of our two favorite colors (after blue) and is the second most visible color (after yellow).
Yellow – Yellow is the color of happiness, optimism, enlightenment, and creativity, but it also has a “dark” side representing cowardice, betrayal, caution, and illness.
Blue – Our favorite color, blue is the color of sky and water, trust, strength, and authority. It is also the opposite (philosophically) of red: cold and damp, compared to red’s warmth and intensity.
Green – Universally associated with nature, green symbolizes growth and fertility, and money, at least in the U.S. It is also negatively associated with illness (green around the gills) and envy. More recently, green has become more than a color, being used as a synonym for all things ecological.
Purple – Because it is extremely rare in nature, purple quickly became the color of royalty. It is often used to symbolize magic, spirituality, creativity, and dignity. Light purples are floral and romantic, dark purples are more dignified and intellectual.
Orange – It’s hot and engaging and also the only color named after a fruit. Orange symbolizes energy and vitality, but it’s important to note that – as with all colors – different shades can have different meanings.
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