As digital-first strategies become the norm, the financial services industry had to adapt to this changing landscape to maintain a competitive edge.
With their customers engaging with more and more touchpoints on their journey to conversion, businesses are collecting, and storing an increasing quantity of consumer data. Whilst this creates a great deal of potential for financial services, it can cause problems if not managed correctly.
Many businesses are still using outdated systems, with data heavily siloed across different brands and teams, preventing a holistic view of customer journey. Smaller companies are also challenged by large competitors who use heavy spending to drive out competition.
FinTech companies represent their own brand of competition but their power can also be used to fuel innovation and growth. PWC agree that 82% of incumbents expect to increase FinTech partnerships in the next three to five years.
4 ways businesses can use data-driven insights to improve their marketing strategy and gain a competitive lead
1. Re-organize your data infrastructure and break down silos across your organization
With consumers generating and sharing a huge amount of data daily, research from IDC shows that the volume of digital data is increasingly by between 40% and 50% annually. Fospha’s advanced machine learning algorithms ingest masses of unstructured data, integrating it within a customer data platform (CDP).
Our CDP is configured in conversation with our clients, building a bespoke solution as individual as their business. Capable of ingesting online and offline data in a broad variety of formats, our CDP provides a singular view of marketing performance and customer experience. Our report generating tool Query also makes it easy to stay ahead of developments in the industry, producing bespoke reports in as little as 6 minutes.
2. Supercharge Paid Search
Pay-per click advertising is becoming increasingly competitive – with $2 made for every $1 spent, its return on investment is undeniable. However, competition is causing costs to rise, with some financial institutions spending over $10,000 a day on paid search marketing alone. Financial adWords are also some of the most expensive, with insurance, loans, and mortgage costing around $50 per click.
Our zero-performance media report allows our clients to eliminate wasted spend on low performance words, reallocating it across words with a higher rate of success. These results can also be easily integrated with bidding platforms such as Kenshoo, replacing human-led decision making with more reliable data-driven strategy, leaving marketers with more time to find and implement important insights.
Our client, AVADO, wanted to understand how their paid search was performing. Fospha found that 32% of keywords played no role in historic or forecasted conversion. As a result, AVADO eliminated the zero-performance keywords and saved £200,000 in AdWords spend, maintained revenue and increased ROI by 30%.
3. Understand the true value of your marketing channels
Without the ability to measure and understand the customer journey, marketers are not able to glean relevant insights to inform more efficient and high performing marketing strategies.
Crucial to this process is understanding how every touchpoint a customer comes into contact with, affects the overall path to conversion. Multi-Touch Attribution (MTA) can help marketers within financial services gain clarity around exactly which channels within their strategies are driving performance. MTA removes human assumption by using a data-driven algorithm to measure the true performance of channels, allowing teams to make more informed decisions when it comes to investing spend.
4. Ensure that your data is secure
Finally, the financial services industry is constantly plagued by fears of cyber security. Under regulations, fuelled by GDPR, companies are constantly searching for secure ways to collect data from their customers whilst still maintaining their rights. Through effective and diligent data management, companies can avoid hefty GDPR breach fines, and provide clear documentation of consent from a consumer.
Today’s world of digital advance comes with a host of challenges for the financial services industry. However, many of these can be overcome with effective data management. Our start small and grow approach makes digital innovation achievable, working closely with our clients to identify and solve their biggest problems.
If you are doing multi-channel digital marketing and need a better understanding of how your channels are working, feel free to get in touch.