As financial services and insurance companies strive to deliver a seamless customer experience across all channels, the conventional marketing model has been reinvented. Forward-thinking institutions have shown how cross-functional teams focused on the customer journey can help develop a single view of the customer. While this strategy can bring measurable benefits, research shows that most financial institutions still have a long way to go in maximizing their marketing return on investment (MROI).
Integrating the banking customer experience
Mobile and digital media continue to drive transformation in the financial services sector, as C-suite executives and marketing leaders respond to the needs of their biggest demographic: the millennial generation.
Millennials are accustomed to having a wide variety of online and offline choices, available to them anytime and anywhere, for researching and buying new products and services. Millennials increasingly expect the same seamless customer experience from their banks and insurers as they do from digital trailblazers in other industries.
Financial services companies are typically fast-to-follow rather than early-to-adopt when it comes to new technologies. These companies have also seen competitors from other verticals invade their territory by offering financial services, such as payment processing and short-term loans as part of the buying experience.
Banking executives and marketing departments have been forced to integrate the banking experience across offline and online channels, not just to reduce expenses, but to capitalize on new business opportunities and avoid losing market share to new entrants.
Reinventing the conventional marketing model
Most banks’ marketing departments were historically geared toward slow-paced campaigns, focused on pushing a single product at a time across an array of channels.
But this conventional model has been flipped upside down. Banks are now investing in "always on" marketing programs, in which they engage with individual customers at every touchpoint along the decision journey. This approach requires agile teams of experts in analytics and information technology (IT), marketing and experience design.
Now, the customer decision journey, rather than a single transaction, drives marketing strategy. This kind of customer journey-focused strategy should also be the foundation for the organizational structure of a financial services institution.
Gearing a cross-functional organization toward the customer journey
Cross-functional organizations geared toward the customer journey encompass three core capabilities; Discovery, Design and Delivery:
Achieving a single view of the customer can be challenging for large financial institutions as well as smaller, community banks. In this case, it makes sense for financial services and insurance companies to work with a partner on the three Ds, to implement the right IT infrastructure and related technologies, and support the development, management and placement of marketing content.
Recent data suggests that focusing on the customer journey brings a 50% greater return on marketing investment, nearly 25% more positive social media mentions, more than 2.5 times greater revenue from customer referrals, and 55% greater cross-sell and upsell revenue than competitors.
To learn how your financial services institution can increase MROI, contact us at firstname.lastname@example.org