Finance Marketing refers to the strategies and techniques that are used and centred around financial services. These methods are used to drive and build brand awareness, attract, and retain customers and promote services within the industry.
Most financial services combine a mix of traditional marketing such as print, TV, radio, in-person events and out-of-home advertising. Alongside digital marketing methods like social media, websites, email, Pay-Per-Click (PPC) and Search Engine Optimisation (SEO).
Most companies do rely on traditional marketing strategies due to historical practices and established trust, but there is a noticeable surge in the popularity of digital marketing strategies. The digital approach has proven effective and is connecting financial services with an expanding customer base.
What’s different about Financial Marketing to typical Marketing strategies is that there are more rules and regulations to be followed due to the nature of financial services. These rules are also prone to changing with little notice, so flexibility and resilience are required.
According to Patrick Muir, an experienced Financial Marketer working in Financial Marketing has you operating in a rigid box, where the rules are strict and have no place to move. This is due to strict laws, regulations, and advertising standards within the financial sector.
Why Finance firms should have a strong focus on Marketing strategies.
Financial Organisations should have a strong focus on developing a Marketing strategy. Such strategies not only help to generate new activity for the organisation it can also strengthen the brand and its relationships, help them to achieve their goals and objectives and more.
Builds Trust:
Within the Financial sector trust is a crucial aspect, people need to feel confident that they can trust that their finances are in a safe place. According to a recent report, 60% of consumers say that trustworthiness and transparency are the most important traits to have in a brand, this is up 55% from 2021.
Through a well-thought-out marketing strategy, trust can be built by incorporating the firm’s values and ethics into the marketing, as well as showcasing credibility and reliability, all while being transparent this will increase trust in the firm.
Attract New Activity:
Marketing of Financial Services through channels within the traditional and digital marketing methods introduces and exposes companies to new audiences. When there is a well-thought-out marketing strategy in place - one that targets the right audience with the right messaging and offers - the reach of a strong marketing strategy can be very successful and can bring new potential customers to the company, as these newly reached audiences are introduced and educated through the marketing messages, and this results in new activity being brought to the business.
Retain Current Clients:
Marketing plays a critical in the financial services sector, aiming not only to expand want to customer bases but also to ensure strong customer retention. Through a customer experience-focused strategy, companies can enhance their customer's journey, maintain high engagement levels and foster loyalty to their services. Utilising channels such as email marketing, website, and print companies can significantly impact retention by reminding existing customers of the value proposition and reasons to remain loyal instead of switching to competitors.
Customer Satisfaction:
Implementing marketing strategies empowers financial institutions to gain valuable insights into their customers' preferences, problems, and needs. With a deeper understanding of their customers, companies can tailor their services to suit specific preferences and address issues effectively. For instance, engaging with potential customers directly through social media and online channels allows for personalised user experiences, tailored to individual preferences and demands. Ultimately, this approach aims to create stable, satisfactory, long-lasting, and profitable relationships with customers.
2024 Trends
There are a few key trends that are emerging in 2024 for Finance specialists to keep in mind:
This year we will see more companies who are reevaluating their customer service strategy, and they will work towards putting their customers’ best interests first and focusing on meeting their needs and mediating their issues effectively.
We will see Finance firms becoming more active on social media platforms, where they will be using social media marketing strategies like organic content creation, paid advertising, influencer partnerships and community management all to create important interactions and humanise their brand.
We will also see a focus on compliance and regulations remaining a top priority for Finance firms, with a strong focus on adhering to rules within any marketing strategies to ensure ethical and legal practices are met.