The latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. Provides comprehensive insights on why retention and expansion are becoming more critical in the banking industry. It documents a clear framework to build the right digital marketing mix and budgetary allocation specific to each sector to drive retention and expansion at scale. However, the success of these strategies lies in meticulous execution. This blog aims to articulate the channel-specific execution challenges and their respective mitigation measures. While the report details how to monitor performance and measure success, this blog will additionally discuss optimizing executions.

Channel-Specific Challenges and Mitigation Measures

1. CX Personalization

Implementing CX personalization faces hurdles like data security, balancing automation with personalization, and integration with legacy systems.

2. SEO/SEM/Paid Media

Maintaining SEO/SEM effectiveness involves dealing with algorithm updates, keyword competition, and zero-click searches

3. Content Marketing

Creating engaging, compliant, and consistent content is challenging but crucial for customer engagement.

4. Social Media Marketing

Effective social media marketing requires regulatory compliance, engaging content, and efficient platform management.

5. Marketing Automation

Ensuring data privacy, integrating legacy systems, and achieving personalization at scale are key challenges.

6. Influencer Marketing

Regulatory compliance and maintaining authenticity are critical for influencer marketing success.

7. Email Marketing

Standing out in the inbox and ensuring compliance are key hurdles in email marketing.

8. Account-Based Marketing (ABM)

Data quality, cross-department collaboration, and personalization at scale are crucial for ABM.While not exhaustive, the above listing highlights the importance of monitoring performance, measuring success, and maintaining a closed-loop feedback system to ensure strategies remain effective. For detailed insights and a comprehensive overview of how to measure success and validate marketing mix and budgetary allocation, refer to the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

About Maveric Systems

Established in 2000, Maveric Systems is a niche, domain-led, BankTech specialist, transforming digital ecosystems across retail, corporate, wealth management, cards & payments and lending domains. Our 2600+ specialists use proven solutions and frameworks to address formidable CXO challenges across Customer Experience, Assurance, Regulatory Compliance, Process Excellence and New age AMS.

 Our competencies across Data, Digital, Cloud, DevOps, AI and automation helps global and regional banking leaders as well as Fintechs solve next-gen business challenges through emerging technology. Our global presence spans across 3 continents with regional delivery capabilities in Amsterdam, Bengaluru, Chennai, Dallas, Dubai, Kingdom of Saudi Arabia, London, New Jersey, Pune, Riyadh, Singapore, Sweden, Dubai and Warsaw.

Our inherent banking domain expertise, a customer-intimacy-led delivery model, and differentiated talent with layered competency – deep domain and tech leadership, supported by a culture of ownership, energy, and commitment to customer success, make us the technology partner of choice for our customers.

In the comprehensive framework outlined in the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. Content marketing emerges as a constant within the channel mix for retail, corporate, and wealth management sectors, ranking high in budget allocations. Additionally, influencer marketing is particularly dominant in the retail sector. For each of these channels, beyond the prioritization within the channel mix and the budget allocation, there is an additional consideration to be worked out:

• For Content Marketing, it is whether to opt for own platform, 3rd party platform, or both, and
• For Influencer Marketing, it is whether to opt for Micro Influencers, Affiliates, or both.

These considerations do have an impact on budgeting and prioritization. Following considerations will help you build the right channels strategy and budgeting

Content Marketing

Content marketing continues to play a pivotal role in educating and engaging customers. Following insights will help you decide between using own platforms or third-party platforms:

• Own Platforms: Utilizing own platforms offers control and customization, enabling banks to align content closely with their brand messaging and provide personalized experiences through direct engagement with customers. This approach also ensures data ownership, allowing banks to collect and analyze customer data to refine future content.
• Third-Party Platforms: Third-party platforms provide extended reach by tapping into established audiences, enhancing the visibility of content among potential customers who might not visit the bank’s own sites. Publishing on reputable third-party platforms can boost credibility and trust, leveraging the platform’s authority to enhance the perceived reliability of the content.

A balanced strategy leveraging both can maximize reach, credibility, and engagement. Sharing the top few banking industry forums that could be leveraged as third-party platforms:

1. BankersOnline.com (North America): A comprehensive resource for banking professionals, offering forums, articles, and tools.^[1]
2. The Financial Services Forum (Europe, UK): Dedicated to marketing and business development within the financial services industry.^[2]
3. Finextra (Global): A leading independent newswire and information source for the worldwide financial technology community.^[3]
4. Banking Technology (Europe, UK): Provides news, analysis, and insights into the latest technological advancements in the banking sector.^[4]
5. BAI Community (North America): Offers forums and resources for financial services leaders to exchange ideas and share solutions.^[5]

Influencer Marketing

Influencer marketing is increasingly important for reaching and retaining customers, particularly among younger demographics. Key considerations include:

• Micro-Influencers: Financial brands are collaborating with micro-influencers who have high engagement rates, especially on platforms like TikTok and Instagram. Micro-influencers provide authentic and relatable content that resonates well with niche audiences.
• Affiliate Partnerships: Influencers often work through affiliates, promoting products and offers indirectly to ensure compliance and maximize reach. Affiliates can significantly boost the reach and credibility of banking sector campaigns by leveraging their established audiences and trust within the financial community.

Here are a few micro-influencers and affiliates that can be leveraged by banks:

Micro-Influencers

1. Humphrey Yang (NA): Known for simplifying complex financial concepts on TikTok and YouTube.
2. Graham Stephan (NA): Shares insights on banking, investments, and saving strategies on YouTube and Instagram.^[6]
3. Patricia Bright (UK): Covers personal finance topics, including banking and investments, with a focus on financial literacy for women.^[7]

Affiliates

1. 1. NerdWallet (NA): Provides comprehensive financial advice and product reviews^[8]
   2. The Points Guy (NA): Specializes in maximizing rewards from credit cards and bank accounts.^[9]
   3. MoneySavingExpert (UK): Offers advice on banking, saving, and investing, founded by Martin Lewis.^[10]

By leveraging both content marketing and influencer marketing strategically, banks can enhance their customer engagement and retention efforts. A well-balanced approach utilizing the strengths of own and third-party platforms, as well as micro-influencers and affiliates, will ensure maximum reach, credibility, and effectiveness.

References

[1] BankersOnline

[2] The Financial Services Forum

[3] Finextra

[4] Banking Technology

[5] BAI Community

[6] Graham Stephan on YouTube

[7] Patricia Bright on YouTube

[8] NerdWallet

[9] The Points Guy

[10] MoneySavingExpert

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

About Maveric Systems

Established in 2000, Maveric Systems is a niche, domain-led, BankTech specialist, transforming digital ecosystems across retail, corporate, wealth management, cards & payments and lending domains. Our 2600+ specialists use proven solutions and frameworks to address formidable CXO challenges across Customer Experience, Assurance, Regulatory Compliance, Process Excellence and New age AMS.

 Our competencies across Data, Digital, Cloud, DevOps, AI and automation helps global and regional banking leaders as well as Fintechs solve next-gen business challenges through emerging technology. Our global presence spans across 3 continents with regional delivery capabilities in Amsterdam, Bengaluru, Chennai, Dallas, Dubai, Kingdom of Saudi Arabia, London, New Jersey, Pune, Riyadh, Singapore, Sweden, Dubai and Warsaw.

Our inherent banking domain expertise, a customer-intimacy-led delivery model, and differentiated talent with layered competency – deep domain and tech leadership, supported by a culture of ownership, energy, and commitment to customer success, make us the technology partner of choice for our customers.

In the era of digital transformation, optimizing the digital marketing mix and budget allocation is crucial for banks aiming to maximize their return on investment (ROI) and ensure cost efficiencies. As detailed in the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. A comprehensive framework to help banks structure their digital marketing efforts effectively.

Framework Overview

The report outlines a two-step framework for optimizing the digital marketing mix and budget allocation:

• Identifying Influencing Parameters: Understanding critical factors such as consumer preferences, regulatory compliance, revenue potential, market competition, technological adoption, brand trust, data utilization, and cost efficiency is essential. These parameters shape the strategies that banks should adopt for an effective marketing mix.
• Building Sector-Specific Channel Mix: Based on these influencing parameters, banks can allocate budgets to various digital marketing channels, ensuring resources are used effectively to achieve desired outcomes. This approach allows for a tailored strategy that meets the unique needs of retail, corporate, and wealth management sectors.

Optimizing Marketing Efforts

To maximize ROI, and ensure that the Digital Marketing Mix yields measurable outcomes, banks need to focus on several key areas:

• Personalization and Targeting: Tailored marketing efforts increase customer satisfaction and loyalty, driving retention and expansion. By leveraging data analytics and AI, banks can deliver personalized messages that resonate with individual customer needs and preferences.
• Resource Optimization: Efficient allocation of marketing resources ensures that efforts are directed towards the most impactful areas. This involves targeting the right audience segments with the right messages at the right time, thereby maximizing ROI.
• Outcome Orientation: Effective digital marketing is aligned with clear business objectives, focusing on measurable outcomes such as increased cross-sell and upsell rates, reduced churn, and enhanced customer lifetime value. Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is critical for tracking progress and making necessary adjustments.

The Importance of Monitoring Performance

Tracking the right KPIs and metrics is essential for validating the effectiveness of the marketing mix. Monitoring performance and measuring success through marketing and business KPIs are crucial because they provide actionable insights that drive decision-making and strategic adjustments.

Why KPIs and Metrics Matter:

• Alignment with Business Goals: KPIs and metrics ensure that marketing efforts are aligned with broader business objectives, enabling banks to track progress towards their strategic goals.
• Resource Optimization: By monitoring KPIs, banks can identify which marketing channels are most effective, allowing for better allocation of resources to maximize ROI.
• Continuous Improvement: Regularly measuring performance helps banks understand what works and what doesn’t, facilitating continuous improvement and adaptation of marketing strategies.

Optimizing the digital marketing mix and budget allocation is crucial for banks aiming to enhance customer retention and drive growth. The latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks covers a detailed framework and provides a comprehensive list of KPIs by channel and sector. This helps banks align their marketing efforts with business goals and achieve significant ROI. For a detailed roadmap on implementing these strategies.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

About Maveric Systems

Established in 2000, Maveric Systems is a niche, domain-led, BankTech specialist, transforming digital ecosystems across retail, corporate, wealth management, cards & payments and lending domains. Our 2600+ specialists use proven solutions and frameworks to address formidable CXO challenges across Customer Experience, Assurance, Regulatory Compliance, Process Excellence and New age AMS.

 Our competencies across Data, Digital, Cloud, DevOps, AI and automation helps global and regional banking leaders as well as Fintechs solve next-gen business challenges through emerging technology. Our global presence spans across 3 continents with regional delivery capabilities in Amsterdam, Bengaluru, Chennai, Dallas, Dubai, Kingdom of Saudi Arabia, London, New Jersey, Pune, Riyadh, Singapore, Sweden, Dubai and Warsaw.

Our inherent banking domain expertise, a customer-intimacy-led delivery model, and differentiated talent with layered competency – deep domain and tech leadership, supported by a culture of ownership, energy, and commitment to customer success, make us the technology partner of choice for our customers.

In the evolving landscape of 2024, banks face heightened challenges in retaining and expanding their customer base. Amidst economic volatility, intense competition, and rapidly changing consumer behaviors, digital marketing has emerged as a strategic pivot for driving retention. As detailed in the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. Underscores the necessity for banks to shift their digital marketing focus towards the brand promise and customer persona to achieve sustainable growth.

The Strategic Pivot of Digital Marketing for Retention

Digital marketing is not just a tool but a strategic lever for enhancing customer retention and expansion. With the cost of acquiring new customers being significantly higher than retaining existing ones, banks must prioritize strategies that foster loyalty and maximize customer lifetime value. According to the Maveric report, digital marketing enables banks to engage customers through personalized and real-time interactions, thereby enhancing customer satisfaction and retention. The ability to deliver tailored content, offers, and experiences through digital channels is essential for meeting the sophisticated demands of today’s banking customers.

Why Digital Marketing Needs to be Pivoted Around Brand Promise

In a hyper-competitive environment, where every bank has access to advanced technologies and strategies, true differentiation lies in how these tools are executed. Aligning digital marketing efforts with the bank’s brand promise is crucial. A brand promise reflects the unique value proposition of a bank, and when digital marketing strategies are aligned with this promise, they resonate more deeply with customers. This alignment ensures that every customer touchpoint consistently reflects the bank’s core values, thereby building trust and loyalty.

Contextualizing Digital Marketing to Sector and Customer Persona

Digital marketing strategies must be tailored not only to the brand promise but also to the specific sector and customer persona. Different banking sectors—retail, corporate, and wealth management—have unique customer profiles and requirements. Understanding these nuances is key to developing effective digital marketing campaigns. For instance, retail banking customers might prioritize convenience and digital-first interactions, while corporate clients may value personalized advisory services and seamless integration with their financial infrastructure. By contextualizing digital marketing efforts to these distinct personas, banks can create more relevant and impactful customer experiences.

The 3-Step Framework for Contextualized Digital Marketing

To effectively pivot digital marketing around the brand promise and customer persona, the “Maveric’s Banking Edge Report 2024” introduces a comprehensive 3-step framework:

1. Brand Promise to Customer Promise: Convert the bank’s brand promise into a customer-centric promise. This involves articulating what the brand promise means from the customer’s perspective, ensuring it addresses their specific needs and expectations.
2. Mapping Customer Promise to KPIs: Develop KPIs that reflect the successful delivery of the customer promise. These KPIs should be aligned with business objectives and measurable outcomes such as increased retention rates, reduced churn, and enhanced customer lifetime value.
3. Contextualizing Digital Marketing Mix: Utilize the digital marketing channels outlined in the report to deliver on the customer promise. This includes social media marketing, content marketing, email marketing, and more, each tailored to reflect the brand promise and customer persona.

For a detailed exploration of this framework and to understand how to effectively implement these strategies, refer to the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks.

In conclusion, pivoting digital marketing strategies around the brand promise and customer persona is essential for banks aiming to achieve differentiation and success in 2024. By aligning digital marketing efforts with core values and customer needs, banks can create meaningful and lasting customer relationships, driving retention and growth in a competitive market. For detailed elaboration of the framework

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

About Maveric Systems

Established in 2000, Maveric Systems is a niche, domain-led, BankTech specialist, transforming digital ecosystems across retail, corporate, wealth management, cards & payments and lending domains. Our 2600+ specialists use proven solutions and frameworks to address formidable CXO challenges across Customer Experience, Assurance, Regulatory Compliance, Process Excellence and New age AMS.

 Our competencies across Data, Digital, Cloud, DevOps, AI and automation helps global and regional banking leaders as well as Fintechs solve next-gen business challenges through emerging technology. Our global presence spans across 3 continents with regional delivery capabilities in Amsterdam, Bengaluru, Chennai, Dallas, Dubai, Kingdom of Saudi Arabia, London, New Jersey, Pune, Riyadh, Singapore, Sweden, Dubai and Warsaw.

Our inherent banking domain expertise, a customer-intimacy-led delivery model, and differentiated talent with layered competency – deep domain and tech leadership, supported by a culture of ownership, energy, and commitment to customer success, make us the technology partner of choice for our customers.

The banking industry is poised to face a myriad of challenges in 2024, driven by a slowing global economy and a complex economic landscape. As detailed in the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. banks must shift their focus from traditional strategies to more sophisticated, contextualized retention frameworks.

Economic Pressures and Market Conditions

The global economy in 2024 is characterized by slow growth and heightened uncertainties. According to the report, the International Monetary Fund (IMF) forecasts global growth at a modest 3.0%, with advanced economies like the US, Europe, and the UK growing at only 1.4%. Despite a drop in inflation to 5.2%, high interest rates have led to increased deposit costs, particularly for regional banks. This scenario underscores the need for banks to find cost-effective ways to sustain profitability, making customer retention and expansion more critical than ever.

Cost Pressures

Higher interest rates have significantly impacted the cost of interest-bearing deposits, especially for smaller banks. In Q2 2023, deposit costs for the largest banks were 2.2%, compared to 2.5% for smaller banks. As banks struggle to lower these high costs, retaining existing customers becomes a more viable strategy than acquiring new ones. Retention efforts help mitigate these cost pressures by maintaining a steady revenue stream from loyal customers who are more likely to engage with multiple products and services.

Criticality of Retention & Expansion

The banking sector is experiencing intense competition from traditional rivals and new entrants like fintech companies and digital-only banks, making customer retention and expansion crucial. Banks need to focus on existing customers to foster loyalty and build long-term relationships, serving as a buffer against competitive pressures. Additionally, consumer behavior is rapidly evolving, with customers demanding more personalized and seamless banking experiences. The report indicates that 44% of banking customers are willing to switch banks due to poor personalization and lack of tailored offers, emphasizing the need for retention strategies that enhance customer satisfaction through personalized services and real-time engagement. Furthermore, the cost disparity between acquiring new customers and retaining existing ones highlights the strategic importance of retention. Acquiring a new customer can cost five times more than retaining an existing one, and existing customers typically have higher lifetime value, making retention a cost-effective priority in the current economic climate.

The imperative of contextualized retention framework

However, merely acknowledging the criticality of client retention and expansion is not enough. Every bank with the right investment appetite can access necessary technologies, processes, people, strategies, and frameworks to drive retention. True differentiated success lies in how these tools, platforms, and strategies are executed. Aligning digital marketing efforts, customer engagement processes, and technological investments with the bank’s unique brand promise and value proposition is therefore crucial. By contextualizing retention strategies to reflect the core values and distinct offerings of the brand, banks can create personalized and meaningful customer experiences that foster loyalty and drive long-term growth.

In conclusion, the latest report by Maveric Systems, titled: Optimizing Client Retention: Digital Marketing Blueprint for Banks. underscores the critical importance of shifting focus from customer acquisition to retention and expansion. And it further gives a clear rationale for the need of a brand promise focused retention framework for differentiated win. For a more detailed roadmap on how to navigate these challenges.

Co-authored by Ashutosh Karandikar, and Venkatesh Padmanabhachari

Maveric’s thought leadership series – E.D.G.E (Experiences Delivered by Global Experts) – handpicks the game-changing technology ideas and pressing functional questions Banks and financial institutions must solve today.

These features – reports, whitepapers, podcasts, flyers, blogs, and infographics – are for Banking leaders and Technology evangelists to apply profound trends, the latest opinions, and transformational analyses to boost the performance of their organizations.

About Maveric Systems

Established in 2000, Maveric Systems is a niche, domain-led, BankTech specialist, transforming digital ecosystems across retail, corporate, wealth management, cards & payments and lending domains. Our 2600+ specialists use proven solutions and frameworks to address formidable CXO challenges across Customer Experience, Assurance, Regulatory Compliance, Process Excellence and New age AMS.

 Our competencies across Data, Digital, Cloud, DevOps, AI and automation helps global and regional banking leaders as well as Fintechs solve next-gen business challenges through emerging technology. Our global presence spans across 3 continents with regional delivery capabilities in Amsterdam, Bengaluru, Chennai, Dallas, Dubai, Kingdom of Saudi Arabia, London, New Jersey, Pune, Riyadh, Singapore, Sweden, Dubai and Warsaw.

Our inherent banking domain expertise, a customer-intimacy-led delivery model, and differentiated talent with layered competency – deep domain and tech leadership, supported by a culture of ownership, energy, and commitment to customer success, make us the technology partner of choice for our customers.