In this article we take a look at 5 Proven Marketing Strategies For Fintech.
Fintech is a global phenomenon that is fast becoming a part of everyday life; however, knowing which marketing strategies to use in such an industry is key.
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Fintech trends in 2021
The gradual introduction of fintech has undoubtedly provided convenience and ease to customers all around the world. In fact, it is widely believed that customers nowadays prefer to enlist the services of companies that are integrating fintech and digital solutions into their operations, a matter which became even more urgent in 2020.
Fintech has made significant changes to and revolutionised various sectors in the finance industry, including banking, financial services and advisory, and even in the segment of online brokers offering CFD services or trading platforms. In light of this, many trends have emerged from the rise of fintech, one of which is digital banking.
This is quite possibly the most prominent and used trend in fintech, as digital banking is one way in which customers can save time and resources. By simply transacting on their smart devices, customers can avoid waiting in long queues or filling out lengthy paperwork.
Additionally, foot traffic at banks has decreased significantly because people can now transact from wherever they are and at the same time, without having to wait for a consultant at a physical branch to assist them individually.
Another popular trend is virtual cards. This is one way of avoiding the risks associated with carrying your physical bank card with you all the time, which can be easily stolen. Therefore, it can be said that virtual cards present an additional layer of security because personal and sensitive information cannot be easily stolen in such cases.
Moreover, for people that tend to forget their cards at home, a virtual card ensures that they no longer have to deal with the inconvenience of having to halt their shopping or transactions and head back home to fetch it.
Importance of a Marketing Strategy
Now, it is all good and well to integrate all of these new developments and systems into your operations, but without the right means of promotion and marketing, the public will never really know about it.
This is where the importance of a marketing strategy comes to the fore. Simply put, a marketing strategy refers to a business or brand’s plan to reach prospective customers, retain existing customers, and possibly encourage old customers to return and make use of your services again.
To highlight the importance of an effective marketing strategy, a 2019 study reported that companies with a well-planned and executed marketing strategy are 313% more likely to be successful in their marketing efforts.
While some traditional financial companies did not see the need to promote their services before, because it is a service that people invariably need, that is no longer the case.
However, with the rise of fintech, financial companies are now seeing the importance of highlighting their unique selling point and the convenience they offer to customers. When introducing new systems and ways of doing things, customers often require guidance on how to make use of them, particularly because finances are a sensitive matter.
While some people were initially reluctant to embrace fintech and digital transactions, many are now warming up to the idea. As such, an effective fintech marketing strategy can encourage people to trust the new way of transacting, whilst building a stronger relationship between you as the service provider and your customers.
5 Proven Marketing Strategies
An effective marketing strategy does more than just react to customer needs or demands, instead, it is proactive and pre-emptive of what customers would like in the future.
In order to truly stand out and gain market share, you need to avoid generic marketing strategies and channels; innovation and uniqueness is ultimately what will build community and establish loyalty from customers in fintech.
Some of the proven strategies for fintech marketing include, but are not limited to:
1. Seek to Educate
Understanding that fintech is still a relatively new concept for many and can be daunting, instead of blatantly marketing your offering or company, you can opt to educate people instead.
In this way, the public will start to view your company as an industry thought leader that is at the forefront of innovation and convenience in finance. Creating bite-sized videos and evergreen content in fintech will help you reach a wider audience.
In turn, they will become drawn to you and the information that you provide, and ultimately turn to you when they need fintech services. This is a more subtle way of communicating with potential and existing customers, without it coming across as a hard sell.
2. Incentivize Customers
One way to encourage word of mouth and virality is through incentivizing people to make use of your services. For fintech companies that are still starting out, or even established companies that are looking to grow market share, introducing discounts and other promotions can be a way of drawing people to your offering.
This is a strategy that PayPal, which is now one of the world’s most notable fintech companies, also implemented. In its initial years, PayPal gave $10 to new users when they signed up, as well as $10 to existing customers for referrals. This strategy reportedly led to a 7 – 10% daily organic growth rate.
3. In-App Marketing
Once you have found a way to attract customers to your services, retaining them becomes just as important. According to industry insiders, customer retention in fintech can be quite a challenge.
One way of overcoming it is through in-app marketing. While customers are making use of your app or an affiliate’s app, you can display pop-up or product-related information so that they remain informed on any new developments.
4. Social Media and Digital Marketing
The rise of social media and digital marketing has proven to be quite beneficial for the promotion of new and emerging concepts. Creating educational content and collaborating with people who are perceived as thought leaders or influencers in finance or technology is one fintech marketing strategy that seems to be yielding results. Social listening and conducting surveys are also great ways of remaining in the know and understanding what customers are looking for from a company such as yours.
5. Personalized Communication
Another proven marketing strategy for fintech is personalized communication. Nothing makes a customer feel more valued and seen than communication that is tailored for them and their needs.
Upon noting what customers want through social listening, that data can be used to create services and products based on that.
When you have all the information at your disposal, you can then segment it according to location or industry – you can determine the parameters based on your goals – and then respond and personalise your offering to suit each market segment or group.
In this way, customers will view your services as innovative and understanding of their needs and demands, which could give you an advantage over your competitors in the long run.
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