Bank marketing strategies are under pressure as financial institutions attempt to increase lending and strengthen customer relationships despite limited marketing budgets. According to The Financial Brand’s 2012 Bank & Credit Union Marketing Survey, inadequate budgets are the leading challenge facing financial marketers, even though nearly half of respondents reported an increase in marketing spending.
Banks and credit unions also face limitations involving technology, employee support, and regulatory compliance. With attracting new borrowers particularly challenging, financial institutions may need to make better use of existing customer relationships and delivery channels to generate additional lending and cross-selling opportunities.
The number one challenge facing financial marketers in the next 12-18 months? Inadequate budgets.
According to The Financial Brand’s 2012 Bank & Credit Union Marketing Survey, bank and credit union executives say their organization’s lack of marketing investment is what holds them back, this despite the fact that nearly half saw their budgets increase in 2012. They also feel that their I.T. systems are limiting, that it’s difficult to get employee support for marketing initiatives, and (of course) there’s always a boatload of compliance headaches.
If financial marketers seem cranky, maybe they have good reason to be. The turbulence of 2011 strained both banks and credit unions alike, and it doesn’t look like 2012 is shaping up to be much easier.
Indeed, marketing executives at banks and credit unions have their work cut out for them this year. They say their number one priority is to increase their financial institution’s lending portfolio. How? By cross-selling mortgages, auto loans and credit cards to existing customers. But the lending market — everything about the entire economy — isn’t cooperating. There aren’t many consumers brave enough to apply for credit in this rotten economy, and only a handful meet lenders’ new, stricter requirements.
With marketing budgets less than ideal, FIs need to find ways to leverage existing tools and capabilities to get their messages out. One way would be to extend the power of their banking channels. By extending their marketing messages through the channels – branches, ATMs, online banking, mobile banking, and in some cases call centers – FIs can use leverage the information known about customers to establish stronger relationships, and new sales opportunities, with them.
Limited budgets do not necessarily mean financial institutions must limit their marketing efforts. Banks and credit unions already have multiple channels through which they regularly interact with customers, including branches, ATMs, online banking, mobile banking, and call centers. Using these existing touchpoints more effectively can extend the reach of marketing campaigns without requiring institutions to build entirely new channels.
Financial institutions also possess customer information that can help make these interactions more relevant. Instead of broadly promoting the same products to every customer, banks and credit unions can use what they know about existing relationships to identify appropriate opportunities for mortgages, auto loans, credit cards, and other financial products. This approach can help institutions focus limited marketing resources on consumers who may be more receptive to particular offers.
Effective bank marketing strategies should therefore coordinate messages across channels while using customer information to improve relevance. Branches and call centers can reinforce offers delivered through digital channels, while ATMs, online banking, and mobile banking can provide additional opportunities to communicate with customers during routine interactions. For financial marketers facing constrained budgets and difficult lending conditions, making better use of existing channels and customer relationships can create new opportunities for engagement, cross-selling, and revenue growth.
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