Aug 12
8
Common social marketing missteps many retailers make
Running a successful marketing campaign historically involves time-honored strategies, such as cold-calling, running newspaper advertisements and hosting networking events. In today’s technology-driven business culture, the rules of the game have changed. Companies, retailers and financial institutions are now including more social media services in their marketing campaigns as a way to reach a broader demographic of consumers and lower their costs.
The power to connect with millions of consumers through social media websites, such as Facebook, Twitter and LinkedIn, gives companies more control over their information and how they want to frame their marketing campaigns. However, this power can also open the doorway to common mistakes that can hinder, rather than enhance, a company’s message. A recent Forbes article highlighted to the most frequent mistakes companies make in their social marketing campaigns, the first of which is treating social media like a one-way street.
The entire point of social media is to engage with potential and current customers. Through these mediums, companies can gain feedback about their products and services, announce new products, campaigns and events, respond to customer inquiries and gauge consumer sentiment. Companies that avoid the opportunity to speak with their consumers and invite them to participate in the company’s growth run the risk of alienating their most loyal customers and potential shoppers.
Another common mistake companies make is introducing their presence on social media and then being inconsistent about growing an audience. Some institutions may get dismayed if they have a limited number of Facebook “likes” or only a handful of Twitter followers. Building up a large audience does not happen overnight and businesses that neglect their social media pages will eventually turn more individuals away. Instead, businesses should focus on building up their pages, asking customers to check out their Facebook pages and even offering incentives to consumers who agree to write reviews, take surveys or post messages about their experiences with a company.
Lastly, businesses should make sure they know their audience before launching a social marketing campaign. Most organizations conduct market research and analyze the demographics they are targeting to design a more effective campaign. The same rules should be followed when launching a social marketing campaign in order to appeal to the right groups and avoid wasting time and energy trying to connect with the wrong individuals.
Marketing Social Media by .
Aug 12
6
Will mobile apps make brick-and-mortar banks obsolete?
More financial institutions are beefing up their mobile channels to provide more variety and convenience to existing customers and boost customer acquisition figures. However, some industry analysts say that this strategy may backfire and only quicken the pace at which brick-and-mortar banks become less utilized by consumers.
Analysts say there are several features – ranging from basic to more complex – offered by mobile apps that make the need to visit a branch less pressing. For example, many apps provide financial assistance programs that allow users to balance their checkbooks, monitor their balances and establish a budget. These actions were previously accomplished in a branch or online, but now individuals have the flexibility to manage their finances on the run, according to the Huffington Post.
There are also now several types of financial transactions eliminate the need to visit a branch or an ATM in a financial institution’s network. For example, consumers can check balances, transfer funds and deposit checks via their smartphones. While remote check capture is still in the development stages, many consumers who are shopping for a new bank are factoring this option into their decisions.
Many industry professionals have dismissed claims that mobile technology will altogether replace banks in the future. Consumers may continue to need brick-and-mortar facilities to apply for mortgages, withdraw cash, make cash deposits and open an account with a financial institution. While studies show that the U.S. is becoming a more cashless society, few experts are confident that cash will ever truly be replaced as millions of Americans are hesitant to jump on the mobile banking bandwagon. However, recent reports from national institutions, such as Bank of America, reveal that many banks are scaling back services and employing more automated systems.
Banking Mobile Banking by .
Jul 12
30
Will technology make smaller banking institutions obsolete?
Many banks are devoting more financial resources to mobile technology and this scenario is not expected to slow down in the near future. Most financial institutions see innovative technology as a cost-effective way to offer more convenience to consumers, gain a more loyal customer base and attract new demographics.
While these points may be true, some expert say that the quickening pace of new technology may have a negative impact on smaller brick-and-mortar institutions in the future, as they struggle to keep pace with new innovations. Currently, online and mobile users can avoid trips to the bank and still complete basic transactions, such as transferring funds, inquiring into a balance and making bill payments. Some banks also allow mobile users to deposit checks through remote capture features that allow them to simply text a front and back image of the check to the institution.
It’s true that mobile and online features have positive benefits for financial institutions in the way of attracting customers and lowering costs. However, analysts say that those smaller institutions that pride themselves on developing personal relationships with consumers and fail to adopt new technology may run the risk of becoming obsolete in the future, according to CNN. Many banks are already laboring under new regulatory requirements that may strain their finances and others are losing customers as a result of fees and other banking costs.
In an increasingly fast-paced world where consumers have several options and can conduct all their banking needs at the push of a button, financial institutions that lack the resources to keep pace with new innovations may lose customers. Few analysts believe banks will ever become obsolete because consumers will continue to need loans, and many individuals do not participate in online and mobile banking. However, as consumers demand more services from institutions, competition among banks is likely to heat up and those who fail to offer an array of services may be at risk.
Jul 12
20
Banks urged to facilitate ‘digital financial lifestyle’ of consumers
More financial institutions and consumers alike are choosing to ‘go paperless’ and focus on digital platforms to send correspondence, manage financial accounts and engage in financial transactions. The benefit for banks is lower costs for drafting and mailing bank statements and notifications. Many consumers are going paperless as a way to reduce their carbon footprint and avoid the clutter of several statements and bills that they can view online.
A new survey released by Javelin Strategy and Research shows that the banks that continue to facilitate consumers’ “digital financial lifestyle” are more likely to boost customer loyalty and achieve their paperless initiatives. However, in order to accomplish these goals, banks cannot simply displace paper, but must create something better than paper, Bank Systems and Technology reports.
The Javelin study highlighted seven core areas that banks will need to improve on in order to fully realize their paperless initiatives. According to the study, banks must recognize that 1) customers are always “on,” or have full access to their accounts, 2) interactions will be in real time, 3) there will be transparency, 4) the customer decides how they want to receive information, 5) information will be integrated, 6) interaction will be secure and 7) the relationship with the bank will help fulfill the customer’s goals, BankTech reports.
Javelin senior analyst Mark Schwanhausser says that while banks have made significant strides in achieving some of these factors, they have yet to fully realize each aspect of this plan, BankTech reports. However, once banks are able to hit these seven points, they may be in a position to build a stronger relationship with consumers as not only a service provider, but as an advisor.
Jul 12
12
‘Smartphonatics’ to drive mobile banking and payment demand
Some consumers are more likely to use their smartphones as electronic wallets than others, but adoption of these payment methods is still slow. However, a new global study reveals that an emerging demographic may help fuel the adoption of electronic wallets and encourage more banks to expand their mobile banking and payment services.
The study, conducted jointly by ACI Worldwide and the Aite Group, examined the habits of a new demographic, which they have labeled “smartphonatics.” This is defined as an individual who changes his or her payment, financial and shopping behaviors after acquiring a smartphone. According to the study results, 80 percent of smartphonatics have used their smartphones for mobile banking, as opposed to only one-third of regular smartphone users. In addition, roughly 70 percent of smartphonatics use their device for mobile payments, compared to less than 25 percent of non-smartphonatics.
The study’s analysts say that the new behavior of this growing demographic is having a direct effect on their shopping and banking needs, which is likely to drive greater demand for expanded services.
Despite a stronger drive for new mobile banking and payment services, the study’s authors concluded that a need for traditional financial services still exists. There remains a large segment of the United States that has not yet warmed to mobile banking for several reasons, ranging from a lack of knowledge about how the services work to concerns over whether their information will be secure. In addition, a large percentage of the population continue to use regular mobile devices and have not yet purchased a smartphone.
However, consumers who use smartphones for banking purposes will now want more variety and options that give them full control and ownership of their financial transactions and how they are managed.
“Consumers expect to shop and transact anywhere, at anytime making mobile the hottest area of opportunity for financial institutions, processors and retailers today,” said Ralph Dangelmaier, ACI Worldwide global markets and services president. “These organizations need to plan strategically for mobile as part of their overall channel strategy, alongside ATMs, POS, branch and online banking. The most successful companies are leveraging their existing banking and payments systems to implement innovative mobile services. That way, they can cut down costs and time to market for new mobile ventures.”