• Like
E Book   Seven Critical Reasons Why Digital Marketing Should Not Be Ignored
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

E Book Seven Critical Reasons Why Digital Marketing Should Not Be Ignored

  • 161 views
Published

A resource on digital marketing for marketers and leadership of banks and credit unions

A resource on digital marketing for marketers and leadership of banks and credit unions

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
161
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
2
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored And What It Means To Your Financial Institution If It Is An eBook for FI Marketers and Leaders By© DeepTarget Inc. All Rights Reserved
  • 2. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 2Introduction Targeted marketing through contemporary channels can make a big difference to the top line and bottom line of your financial institution. This eBook will detail the many reasons why. Moreover, it is a key factor in customer retention – an important short and long-term goal for any organization. Yet, despite this, many financial institutions continue to put an overarching emphasis on everything but marketing! Some questions that need to be answered are as follows: • Are you giving your competition the upper hand? • Do you truly know and accommodate your customer? • Are you using the latest proven marketing strategies? • Are you improving quality with the information at hand? Giving lower priority and minimal attention to online and digital marketing strategies and tactics can impact you in ways that are not beneficial to the overall health of the FI. This paper gives an overview of why they should not be neglected, and in fact, why they should be on par with other strategic initiatives within the organization. With a greater customer focus, increased emphasis on targeted marketing and effective customer retention plans, you may discover greater profitability within your existing customer base.© DeepTarget Inc. All Rights Reserved
  • 3. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 3Reason #1 - Acquiring NewCustomers is Expensive! Studies have shown that companies spend five to seven times more money on acquiring new customers as they do on retaining those they already have. In addition, they have demonstrated that as a customer relationship with a company lengthens, profits from that customer increase. And not by an insignificant amount either!© DeepTarget Inc. All Rights Reserved
  • 4. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 4Reason #2 - Customer-Driven ProfitStrategies Should Not Be Ignored The 80-20 rule applies in many cases where the top 20% of customers account for most or all of the profit. It is important to analyze which customers to retain. Yet, how many companies are using this valuable data about their customers in order to personalize and target campaigns to customers in a way that maximizes their value and profit? Financial institutions must find a way to retain profitable customers, turn marginally unprofitable customers profitable, and reduce the marketing budget spent on the most costly customers. However, before firms can address these issues and take action they must closely monitor customer behaviour to develop insights that allow them to target the right customer segment with a relevant, compelling offer at a time when the customer is most open to receiving the message. When looking at retention programs, you must appreciate who you want to retain and why. To determine which customers to keep, which to try to move to a profitable customer segment, and which to let go, financial institutions must now turn to new marketing strategies and channels.© DeepTarget Inc. All Rights Reserved
  • 5. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 5Reason #3 - What It Means To BeCustomer Focused The move to a greater customer focus is an attempt to see things from a customer perspective. Always keep in mind that the purpose of marketing is to generate customer-perceived value, profitably. This means turning the four P’s of marketing to be all about the CUSTOMER: Product is about customer’s needs and wants Price is about cost to the customer Place is about convenience Promotion is about communication (that counts)© DeepTarget Inc. All Rights Reserved
  • 6. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 6Reason #4 - Why Loyalty Counts Their growing numbers becomes an annuity. You can Loyal customers are typically more manage the costs of servicing their needs. And, as a profitable customers. There are no great bonus, they act as word-of-mouth marketers for you. acquisition costs. They tend to buy more products and services and are There is also strong evidence that retention increases more liable to try out new ones. in direct proportion with the number of products held by a customer, i.e. they become “sticky”.© DeepTarget Inc. All Rights Reserved
  • 7. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 7Reason #5 - In the New World,Data and Metrics Count Too Success in marketing today means it is essential to understand which customers are to be targeted and to measure their reaction to the offer. Using your marketing budget to solicit unprofitable or marginal customers is simply not good business. By leveraging your information assets, you can become more familiar with specific customers’ needs, which translates into more applicable products and responsive services, leading to improved customer satisfaction. By better understanding the customer, an FI is able to more effectively target the right promotion, to the right prospects, at the right time through the right channels.© DeepTarget Inc. All Rights Reserved
  • 8. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 8Reason #6 – You Should Know YourCustomers – They Are Not All The Same Using combinations of internally created information, web gathered and outside sourced information, the cost of customer acquisition can be reduced and new product sales can be increased. Many financial institutions have thus have adopted customer knowledge infrastructure as a support tool in their approach to marketing. The tangible benefits of this can be clearly measured, as can the spin-off benefits relating to enhanced customer service and staff morale. The typical results of customer knowledge-based marketing activity show a 200% to 400% improvement in converted response rates. The actual results vary by product, but as a “rule of-thumb” expect the rate of response before this approach to be multiplied by a factor of 2 to 4 times. Continued on next page… Combined with the right targeting software, delivered though the channels where the customer wants to communicate, you can grow your business and increase income, while reducing costs.© DeepTarget Inc. All Rights Reserved
  • 9. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 9Reason #6 – You Should Know YourCustomers – They Are Not All The Same …Continued from previous page Studies have found that market leaders increase customer value by sending customers information based on past purchasing behaviour and on marketing insights derived from predictive algorithms. Customer intelligence models based on rules engines can deliver the kind of detailed customer insight that lets you communicate effectively with customers based on variables such as life stage, product usage, and attitudes. As your customer evolves based on changes or stages of their life, you can also evolve your communication to them. Financial firms that incorporate these rules are the most likely to deepen their relationships with customers, and ultimately to increase the value and revenue reaped from their full spectrum of customers. It is reported that a detailed, comprehensive analysis of customer data (customer intelligence) can generate an average five-year return on investment of up to 431% compared to 55% from a pure customer strategy, according to a recent study by research firm IDC (www.idc.com). Extending special offers to the right customers can increase retention of top-tier customers by more than 12%. These are serious numbers!© DeepTarget Inc. All Rights Reserved
  • 10. Seven Critical Reasons Why Digital Marketing Should Not Be Ignored 10Reason #7 – Welcome To The NewMarketing Paradigm This is the new way of planning to get a greater customer wallet share, and to deliver a more focused way of achieving income targets. With targeted marketing, the more timely and relevant the contact, the more likely customers will respond and buy a “new” or “improved” product or service. It is important to have a strategy to get from where you are now to where you could be. It is a step you will have to make to remain competitive in today’s economy. You already have the customer data. All you need to do is manage its transformation into marketing information, and use it to deliver messages that make an impact – to your top line and bottom line.© DeepTarget Inc. All Rights Reserved
  • 11. At DeepTarget, we make software that can help turn up the volume of your marketing messages. We use multiple channels (online banking, web, email, mobile, etc.) for cross-selling to grow high-quality relationships and generate income while pinpointing a personalized marketing message for each Seven Critical customer. Reasons Why Your messages are delivered where and when your customers will see Digital Marketing them, helping you with relevant and timely contact. Should Not Be Ignored Growth of digital media usage and DeepTarget’s innovations have helped with its broad adoption and And What It Means To Your growth in the Financial Services Financial Institution If It Is sector. Visit our website here and email An eBook for FI Marketers and Leaders By us at info@deeptarget.com for a free, personalized consultation.© DeepTarget Inc. All Rights Reserved