At the start of any discussion on digital marketing in the banking sector, it is essential to distinguish between digital banking as a service and digital marketing of banking services. Digital banking refers to the ability of the bank to provide access to its services through the internet on desktop computers, phones, ATMs, POS points and handheld devices. Digital marketing of banking services refers to how a bank reaches out on the internet to new and existing customers to generate business. It is a development of the older forms of outreach, mainly printed press, TV and radio, which no longer suit the evolving digital world for digital marketing in the banking industry.
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Digital marketing in the banking sector offers banks many tools to boost traffic, increase brand awareness and engage with new and existing customers in more efficient and effective ways.
The main pillars of sales and marketing in the banking sector in the past have been to identify the security and stability of their financial institution. Most commercial banks followed the same marketing pattern as the retail sector did, until the shift from just selling a service to selling and focusing on the customer experience occurred at the beginning of the current century towards digital marketing in the banking industry.
The banking sector has become far more competitive over the past two decades. The only way for one bank to stand out above the others is to give new and existing customers an experience that this bank can support their specific needs and expectations, through digital marketing of its banking services. It requires the bank not just to sell its products, but to engage with and educate the public on what makes the bank the first choice for their banking needs. Digital marketing in the banking sector is the way to provide the necessary recognition and stay ahead of the competition.
What are the unique requirements in digital marketing in the banking sector?
Customer expectations in choosing a banking service provider differ radically from their needs in other markets. For customers looking to shop for regular products online, there is a tangible outcome related to the physical product they bought. If the product delivered is not what the customer expected, then the result will be dissatisfaction, loss of repeat business and could even go so far as reputational damage.
Sales and marketing in the banking sector has a totally different orientation because the outcome of all interactions for customers is intangible. In formal studies about banking marketing generally, this is referred to as “the immateriality and the abstractization of the banking services”.
It means that the real success of any sales and marketing in the banking sector will rest on the customer’s experience in locating a service provider, being informed about the services offered thanks to digital marketing in the banking industry, and conducting a transaction smoothly and efficiently. Customers of banks do not look at the dollars, pounds or euros involved in a transaction as the end result, the way retail buyers look at the shoes, hats or groceries as proof of the success of their experience. The customer experience in conducting the transaction is the ultimate factor that determines the success of its technology, including social media marketing in the banking industry.
Digital marketing in the banking sector must satisfy three primary needs:
Presentation – the digital marketing in the banking industry should be using all of the channels. These must include a fully interactive website that creates a presence that allows customers to discover how the bank can meet their needs, and a high presence of social media marketing in the banking industry that will serve to glean potential customers who are interacting in unstructured forums like Google, Facebook, Twitter, TikTok and LinkedIn and direct them to the bank’s websites. Using social media marketing in the banking industry is a two-way process. New and potential customers should be able to engage with popular social media outlets by chatting, following, searching and engaging. At the same time, the bank must collect, analyze and use data about social media interactions to drive its digital marketing program in a feedback loop.
Identification – customers looking to engage with banks must be able to find via digital marketing in the banking sector the identity that the bank offers the specific services they are looking for. Working on social media marketing in the banking industry with tools such as Search Engine Optimizers and Artificial Intelligence, the bank needs to identify where the visitor to the website has come from, and to present the appropriate scenario so that the visitor quickly locates whatever their current interests are. This sets the standards for the way the web presence displays its features.
Differentiation – digital marketing in the banking industry must tell a story to the world of what makes this bank different from the rest. Banking in the current market is highly competitive, and most banks are offering the same services as all the other banks. But customers also need to be able to pick up why this bank is better, either because it provides services that the competition doesn’t or because it performs the same services better, faster or cheaper, through digital marketing in the banking sector.
Digital marketing of banking services
For digital marketing of its banking services to be successful, a bank needs to create ongoing relationships with customers so that they feel comfortable when engaging with the bank. Adding rich content to the bank’s web presence, and allowing for dynamic feedback from visitors, even catering to individual relationships between customers and managers through an online portal, will establish the personalized service that is a big plus when it comes to digital marketing in the banking sector.
Sales and marketing in the banking sector
Digital marketing for banks is not just about advertising; it’s more about how customers can interact through social media and the web. Personalized presence and ease of use can market the banks in ways that advertising cannot. Planning for digital marketing in the banking sector needs to be coordinated across all the media. Press releases, mailout campaigns and printed adverts must all reference the same points as social media content and the corporate website. This also means any sales and marketing in the banking sector will need to be updated continuously so that users do not receive conflicting or contradictory information when they link from external platforms (social media, mailout campaigns etc.) to the bank’s home website.
FAQ
What is the role of digital marketing in the banking industry?
Banks operate in a highly competitive and dynamic market. Customer loyalty is no longer a strong factor when it comes to banking. When new services are being introduced into the banking sphere, such as wallets and cryptocurrency trading with blockchain integration, point of sale (POS) identification, Demat accounts, satellite banking, phone banking, unified payments interface (UPI) and all the other forms of electronic payments and settlements systems, customer awareness of the bank’s services is the key to success, and it can only be achieved via digital marketing in the banking industry. Any bank that “rests on its laurels” because of its past success or reputation will quickly be overtaken by the opposition who constantly remind the public of their presence and services.
What is digital marketing in the banking industry and its role?
Sales and marketing in the banking sector plays the same role as it does for other commercial activities. It must attract the attention and interest of existing customers and potential users of the bank’s services so that they generate business. In this respect, there is no difference between ordinary marketing, such as press or TV advertising of the bank and digital marketing. The famous words of Marshall McLuhan apply – “the medium is the message”
