Financial services companies face massive change in today’s customer-driven, digital and competitive environment.
Customers are buying more products and services from financial companies – but not necessarily from their current providers, because they expect more value from their service providers and are looking for a relationship. Customer service and value creation are the driving criteria for earning and retaining customer loyalty.
The majority of today’s customers are also doing business digitally, forcing firms to change their entire marketing strategy. Within this transition, financial services organizations need to embrace Big Data to gain an in-depth understanding of their consumers’ behavior, attitudes and needs in order to respond in real-time with relevant, targeted messaging.
Financial marketers are pivoting to digital because they are seeing diminishing returns and poor audience engagement in traditional advertising channels. Because of this, there is a new breed of financial service providers, many with no physical locations that are engaging customers with targeted messages and more creative financial offerings.
Although technology is a challenge in many industries, it is specifically so within the financial services industry. Technology is changing the business model for the channel and the customer’s behavior/expectations. It also creates an environment of greater global competition. In order to compete, firms need to attract, retain and enable financial advisors with new and ever-evolving digital skills to ensure long-term sustainable growth. Digitally-focused and agile financial firms are attracting and enabling financial advisors with better programs and incentives.
Can a financial services company use marketing as a differentiator to respond to and successfully compete in the customer-driven, digital and competitive environment?
Yes, and there are 5 critical investment areas that can successfully drive this change: