Financial Marketing Gets Personal

CUNA eScan
May 31, 2012 | COMMENTS

Consumer experiences in all walks of life are becoming more personalized. In part, this is a direct result the emergence of one-to-one marketing, says Dino Balafas, director of product management at the Datacard Group in the firm’s report Personalization as a Differentiator in Financial Card Issuance.

One-to-one marketing began with organizations gathering data about their members and customers, then using it to help target marketing campaigns. And as technology developed over the past few years though, consumers gained new shopping-related capabilities online, including the ubiquitous ability to compare prices and evaluate products and services.

“As a result, the new model of one-to-one marketing equally distributes power between producer and consumer,” reports Balafas. “The new model replaces hype, intrusion, and image with authentic and relevant experiences as defined by the consumer.”

Today, there are three steps to personalizing products, according to global consultant Accenture:

• Data gathering and analysis;
• Optimization and campaign management; and
• Personalization.

In optimization and campaign management, there’s more interaction with consumers than ever before. And consumers have begun to demand this format of interaction between themselves and organizations.

“As a rule, consumers know they can [help define their products and services] and they are beginning to insist on it,” says the report. “They are willing to trade loyalty and hard-earned income for it.”

Financial institutions must get on board, or suffer the consequences. New efforts to personalize members’ and customers’ experiences include:

• Megasites. It takes a lot more for a marketing campaign to be effective today than in the past, according to The Financial Brand. It often takes an website besides your credit union’s main site—and not just a microsite. Often, these megasites incorporate social media platforms like Twitter, YouTube and Facebook. The Financial Brand recommends creating brand and image synergy between your promotional subsite and primary website.
• New channels for member service. Live online chat has been around awhile, but its use is increasing. Using instant online chat you can respond to consumers’ questions and concerns at the point-of-sale. This has the advantage of making a one-directional marketing tool into an interactive sales or service experience. Additionally, use social media platforms to communicate with consumers. Feel free to be creative—the State Bank of India guarantees if you text them ‘unhappy’ they’ll address your complaint within 48 hours.
• Personal financial management tools (PFM). These tools are a next-generation version of desktop applications like Quicken. They help consumers track spending and manage their money—often in a single-view format. PFM tools can also include financial advice, community features, and visualizations. Successful PFM tools include those by Mint, Geezeo and Jwaala.
• Opportunities for feedback. Some financial institutions seek feedback formally on their website, and then post it. Other options are to allow public comments on products and services offered, or to allow for Q&A discussions.
• User-generated content (UGC). This is one major away financial institutions might integrate social media into their marketing efforts. Some popular uses have included: blogger contests, photo contests, and make-your-own TV contests. If you institute these contests, however, leave the competition to the users and avoid the temptation to submit the institution’s own work. 
• Personalized plastic cards. DataCard Group advocates for these products, suggesting they stand out from the competition, align with consumer demand for personalization, strengthen cardholder loyalty, position the brand as responsive and consumer driven, and create memorable consumer experiences.

Each of these efforts holds potential to benefit your members and your credit union. Taking members’ advice helps you more accurately address their needs, and giving members what they want keeps them loyal.

In short, this constant flow of information keeps credit union staff and members engaged, co-participants in a dialogue designed to improve members’ experience.