TThe adage goes, “One size fits all,” but in today’s everevolving financial services landscape, one size does not fit all. The financial sector is undergoing a seismic shift towards personalized marketing campaigns that cater to individual needs and preferences. For example, according to eMarketer, financial institutions must begin preparing for their next big wave of customers — Gen Zers. This customer demographic isn’t afraid to switch their financial institution if their needs aren’t met. They want authenticity and are likely to prefer banking digitally. Whereas Gen X and baby boomer demographics are fiercely loyal to the financial institutions they started with and often prefer more in-person interactions. There are a few supporting reasons why personalization is so important when it comes to your financial institution: • When choosing a bank or other financial institution, consumers are looking for businesses that offer personal finance services, such as financial advisors or the ability to manage individual accounts remotely (Source: Insider Intelligence). • Consumers who routinely use their bank's digital and mobile channels were found to have higher satisfaction levels than those who do so less frequently (Source: eMarketer). • 73% of respondents said a complete digital experience would improve their banking experience. Nearly half of their respondents also said they would leave their bank for one that offered a better digital experience (Source: WestMonroe, Banking Industry Outlook Report). There’s a way to create personalized experiences for everyone — so let’s dive in more. The Importance of Personalization According to Twilio’s State of Customer Engagement Report, 66% of consumers would stop using a brand if their experience were not personalized. This report states that the brands overestimate how well they meet consumer expectations for communication preferences, protecting customer data privacy and transparency around customer data usage. • Consumers want a faster transition to a cookieless future. Nearly one-third of consumers always or often reject cookies on websites. Almost two-thirds of consumers prefer brands that only use first-party data to personalize their experience. • 81% of consumers say personalized experiences increase their loyalty to brands, and consumers spend, on average, 21% more with brands that personalize. • 40% of consumers say they’ve stopped doing business with a brand after their expectations for trust and privacy weren’t met. Now more than ever is the time for financial institutions to begin thinking about their overall marketing and advertising strategy for personalization. These are the questions that need to be asked: 1. How can you ensure your customer's data privacy while running personalized campaigns? 2. How can you maintain trust and loyalty with your customers? The Power of Personalization: Beyond the Traditional Approach Gone are the days when financial institutions could rely on generic advertisements to attract customers. Personalization is taking center stage, enabling institutions to craft tailored messages that resonate with individual clients and their unique Elevate Customer Engagement and Loyalty THROUGH PERSONALIZATION IN FINANCIAL ADVERTISING By Adam Lee, President, Techint Labs Colorado Banker 24
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