It’s been a tough year for FinTech.
This year’s combination of reduced FinTech funding (65% decline) and reduced consumer spending has sparked stronger competition for FinTech businesses. That’s why the term ‘personalisation’ is going through an ABBA-like rebirth in the marketing industry. Customers are becoming more reserved with their money and more concerned about their morals leading to a craving for more personal, one-to-one communication. But in practice, what does personalisation actually mean? And, more importantly, how can you be innovative with it to improve your customer retention in 2024?
In an era of sky-high inflation and hard-to-trust governments, winners in the financial sector today are companies that keep promises to customers. A global study by M&C Saatchi found that 18% of consumers stopped using a brand in the past 12 months because of the gap between the product as marketed and their lived experience, costing the average UK brand between £220-390m in lost revenue yearly.
Can you now see the importance of ‘personalisation’?
FinTech brands that don’t foster a more personalised marketing strategy play the risk of being ousted by their customers and losing big on revenue losses. Things are about to get personal for FinTech marketing. The question is, are you ready to embrace it?
What Does Personalisation Really Mean For FinTech Marketing?
In the grand scheme of things, FinTech is a very young industry. It celebrated its 30th birthday last year, along with Beanie Babies, Sleepless in Seattle, and Mighty Morphin Power Rangers. However, even though they’ve only just left teenhood behind, Fintech companies are naturally good at personalised marketing campaigns by design – they collect and analyse customer data on a daily basis. This has allowed the FinTech industry to completely redefine customer experience by giving users trust, security, and productivity.
This powerful impact begs the question, hasn’t the FinTech industry always been personalised? In some cases “yes” with brands like Stripe using data analytics and machine learning to deliver highly targeted and personalised marketing messages to customers based on their transaction history, spending behaviour, and preferences. But in other cases “no” because as an industry, it continues to stand under the traditional umbrella of finance.
This is why many FinTech companies aim to move away from the stereotypical marketing style of casting a wide net to a more data-driven personalised marketing approach. The more skilful a business is at applying data to improve consumer connection, the greater the ROI. Research shows that companies that excel at personalisation generate 40% more revenue from those activities than others.
This is why personalisation in FinTech marketing is such a crucial strategy for success as we move into 2024. If you can connect with your customers by speaking to them like you’re their friend, they’re more inclined to stick around – and that’s where the growth potential becomes infinitely higher. A Gartner survey indicated that 70% of CMOs, CSOs, and over half of general managers see that their revenue is linked to existing customers.
But how are we meant to connect deeply with our customers when their attention spans currently sit at 8.25 seconds, which is now proven to be shorter than a goldfish?
Future-Proof Personalised Marketing Strategies For FinTech Businesses
Here are some of our favourite innovative strategies that FinTech businesses could adopt to elevate their personalised marketing game as we move into 2024:
Embark on the Metaverse Voyage:
The Metaverse, an expansive digital reality, is the new frontier for marketers. Especially with the recent release of the latest revolutionary VR headset, the Meta Quest Pro. It’s a game-changer!
FinTech companies can design virtual financial advisories, immersive product demonstrations, or community-centric financial literacy programs. By doing so, they can foster deeper connections with consumers, offering them more than just a service but a memorable experience in a virtual world.
The fusion of technology and strategy in programmatic advertising enables a more efficient and precise ad-buying process. By automating ad purchases and placements, FinTech firms can reach the right audiences with personalised messages, ensuring that every marketing dollar is well-spent.
Harness the Power of AI:
AI is revolutionising the marketing sector with its ability to sift through vast data and unearth invaluable insights about consumer behaviour. For example, AI is proven to predict customer churn with up to 95% accuracy and increase customer retention rates by up to 10%.
FinTech companies can leverage AI for automating mundane tasks, crafting engaging content, and significantly improving personalisation by understanding customer preferences at record-breaking speed. This means you can adapt to the market and evolving customer behaviour faster than ever before.
Voice Search Optimisation:
As voice-activated devices become a staple in households, optimising for voice search is crucial. It’s a pathway to remain accessible and visible to potential customers who are searching for financial solutions vocally. Plus, some voice search technologies give marketers the chance to access customer data, allowing them to create super-targeted campaigns that look and sound like the voice of the customer.
Micro and Nano Influencer Collaborations:
Engaging with micro and nano influencers isn’t a new strategy but with the unstoppable adoption of TikTok and Instagram Reels, it can help FinTech brands reach niche audiences and build trust. These influencers can lend a personal touch to marketing campaigns, making them more relatable and authentic to their followers.
Predictive Analytics for Proactive Marketing:
The soothsayer of the marketing world, predictive analytics can help FinTech businesses understand future consumer behaviours and market trends. This foresight enables the creation of proactive marketing strategies that resonate with consumers on a deeper level, ensuring a sustained competitive edge.
As we transition into 2024, the FinTech landscape is ripe for innovation, especially in the realm of personalised marketing. The strategies highlighted above are not mere adaptations but a call for evolution, urging FinTech businesses to delve deeper into personalised engagements.
Embracing more forward-thinking marketing strategies will not only foster a culture of trust but significantly bolster a brand’s standing in an intensely competitive market. The fusion of cutting-edge technology, like AI and VR, with a humane touch in marketing isn’t just about staying relevant; it’s about forging meaningful connections with the consumer in our digitally distracting world.
Fintech brands that challenge the status quo in their marketing campaigns to deliver strong, succinct and personalised market-relevant messages are the ones that will win in the long term.
Not Sure Where To Start With Your 2024 FinTech Marketing Strategy?
In the dynamic world of FinTech, challenges are ever-present. At Chesamel, we’re not just aware of these hurdles; we’ve honed our expertise in navigating them. We understand the frustrations and complexities you face. Why navigate this journey alone when you can have an experienced partner by your side? Let’s discuss your challenges and chart a path to success.
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