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Marketers are being asked more than ever to help their lines of business reach their sales goals.
Mark Gibson
Bank marketers thought they could breathe a sigh of relief once the pandemic calmed down.
They were wrong! Accelerating changes in consumer behavior, the rapid expansion of digital marketing capabilities, and regulatory shifts combine to make 2023 even more interesting and challenging than the last few years. Let’s take a look at four key trends that will have a big impact.
bye-bye cookie
The industry has been talking about a cookie-free future for the past few years. But with Apple’s recent changes and Google’s announcement of Chrome browser changes, the future is now here. This has a major impact on how most bank marketers do digital advertising and must be addressed in order to maintain his performance in marketing.
Simply put, third-party data that allows marketers to track consumer behavior on the web and target based on their interests becomes much more difficult. Alternative approaches, such as building and using “first party data,” data that customers generate through their transactions with banks, will be essential. For example, keeping a database of each customer’s email his address and phone number, and being able to monitor the customer’s behavior on the website, the bank’s marketers could tailor messages to offer advice or , can present customized offers and sell products.
It is clear that data collection, data management and highly focused data analysis will become more important in this new world. The second implication is that you need marketing automation to do something with that data. This means targeting personalized offers or tailoring campaigns to customers exhibiting specific behaviors. All work in a new cookie-free environment.
Battle for deposits
Who would have thought six months ago that the market would be in a deposit rate war? But as pandemic stimulus deposits drain banks and lending demand continues. Also contributing to the deposit outflow is the aggressive approach taken by many banks and neobanks to raise deposits. In fact, a recent JD Power survey of him reported that 26% of his customers had sent money to another financial institution in the past 30 days. or there is a lot of movement.
This statistic suggests that stopping outflows is perhaps the most urgent challenge for banks. How can you support frontline bankers? Useful options range from providing large depositor lists to creating promotional products and offers that banks can offer to rate-sensitive customers. various up to. This will continue to be a priority throughout 2023.
Additionally, many marketers are tinkering with CD growth campaign playbooks. Even the rate ads in the printed newspaper are back in our repertoire, though the bank marketer needs to be more knowledgeable than getting his CD rate the best in town. Many banks use data analytics to identify prospects in the market who are likely to have large deposits with other banks and make targeted offers.
These types of deposit growth programs can feature CDs, but can also emphasize high-yield savings or money market products designed to attract new money. Not only that, but they are likely to generate core customers for the bank, so they may be preferable to CD campaigns.
Promote sales to digital channels
One of the biggest behavioral impacts of the pandemic is that millions of people have turned to technology instead of traveling to meet face-to-face. Some banks had already invested in sophisticated online account opening systems with great UX, but many struggled to make up for declining branch sales. As a result, investments in improved digital account opening systems are on most banks’ current technology roadmaps. However, the implementation of these systems is often different from the movie Field of Dreams. So building it doesn’t necessarily mean customers or prospects will come.
What you need is a new marketing program designed to drive people to new online applications. While the URL can be incorporated into existing customer acquisition campaigns, she typically also requires a dedicated campaign specifically designed to attract digitally-minded customers to her website or application. This will be a top priority for most marketers in 2023.
This priority requires two things. First, marketing must work closely with digital channels to coordinate campaigns and manage daily and weekly marketing and application conversion funnels. Second, a continuous process to measure results over the same frequent timeframes is essential. This allows you to test and optimize both your marketing and sales efforts as your campaign unfolds. One client noticed at least a 25% increase in media performance and sales results by his 10th week of the campaign using this frequent optimization process.
catch up with regulators
Two very important changes are taking place in the area of regulation and compliance. The first is how to realize all the benefits that digital marketing has to offer while managing significant and growing compliance risks. Second, upcoming changes to data privacy laws and how they will impact his 2023 marketing landscape.
Regulators are becoming more aware of how banks target their advertising and how digital algorithms may be excluding certain protected classes of consumers, often without the banks’ knowledge. We are actively investigating. Additionally, regulators say they may begin applying fair lending-type reviews to other categories, such as consumer deposits and corporate advertising. All of these must be taken into consideration by compliance teams and can have a significant impact on the advertising effectiveness of marketing. Also, digital marketers who serve targeted advertising to financial companies are subject to the Consumer Financial Protection Act and UDAAP bans due to an interpretation rule issued by the CFPB this summer.
In 2023, it is imperative to find common ground between compliance and marketing to manage risk and simultaneously achieve the bank’s business objectives. Campaigns, products, and marketing techniques must be “risk-assessed,” and appropriate documentation of reviews, approvals and mitigating factors must be consistently produced. This allows us to focus intensive review on campaigns with high-risk components, while designing a streamlined approval process for the rest.
The patchwork quilt of data privacy laws could soon be overshadowed by the US Data Privacy Protection Act, but whether that happens or not, bank marketers will have to step up their game this year. . Five states have already passed laws restricting how businesses collect and use customer information. California’s law is similar to Europe’s GDPR, and many experts believe it’s only a matter of time before the US adopts similar legislation.
Impacts on bank marketers in 2023 include:
• Developing new skill sets, processes and organizational approaches to ensure the right balance between regulatory risk management and advertising effectiveness – possibly including enhanced training for marketers and their vendors
• Review the campaign development process to ensure compliance is included in targeting and media and review of creative assets, and adequate measurement and documentation.
• Closer scrutiny and management of vendors, data providers, and media platforms to identify potential compliance-related risks
• Build closer relationships with marketers and compliance officers to ensure alignment, not conflict.
Marketers are being asked more than ever to help their lines of business reach their sales goals. At the same time, technological evolution and regulatory changes are constantly creating new enablers and barriers to success. The past few years have seen an increase in marketing innovation and adaptability, and the new year will be just as challenging and rewarding.
Mark Gibson is a Senior Consultant for the Capital Performance Group. Capital Performance Group is a strategic consulting firm that assists banks in strategic planning and marketing performance. You can also reach us on LinkedIn.
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