Customer engagement in a bank is the actions taken to attract new customers and retain them over time. These strategies should be based on current customer demands, use of technology, digital marketing, competition research and industry trends. Social media, for example, where users are immersed in and constantly consuming a variety of content, is a useful ecosystem for gathering information and honing strategies based on it. But this is just a preview of what a robust digital strategy should contain.
The importance of customer engagement in banking
The more customers you attract, the more opportunities you have to close financial deals. Customer engagement is important for the growth and financial stability of a bank. The larger your customer base, the more business opportunities you have. This, in turn, will allow you to gain a deeper understanding of their needs so that you can offer a personalized experience. Remember, satisfied customers are more likely to become supporters of the bank and help build a positive reputation. According to IBM, banking has a tough time: it faces a number of challenges such as gaining trust, increasingly personalizing services and strengthening security mechanisms. In fact, the banking sector is one of the most susceptible to attacks, as it handles huge amounts of sensitive customer data.
Strategies for attracting customers to the bank:
1. Look for a personalized approach
The basic rule of thumb for any business is to treat each audience segment differently, regardless of the industry, to increase the chances that customers will respond positively to your strategies and this will translate into sales. In the case of the financial sector, where customers tend to be more diversified, this is even more relevant. Santander, for example, has two target audiences: companies and individuals. But each has other audiences that need to be categorized, including the digital customer segment, which grew to 32 million in 2017-2018.
2. Optimize mobile banking
Not so long ago, people used to stand in queues to pay for basic services, resulting in stress and wasted time. Who would have thought that mobile banking would eliminate the need to be in the office in person and solve all these problems in less than a couple of minutes and from your cell phone. According to an Ipsos study, there are about 6 million people in Peru using digital banking services and the mobile app is the most used channel at 69%, followed by online banking at 65% and mobile wallet at 56%. What are the challenges facing banks? Providing intuitive navigation, security mechanisms in mobile banking (tokenized key, templates and biometric methods) and active dissemination of information on phishing prevention.
3. Educate with podcasts
Podcasts are a powerful tool to educate customers on financial topics, banking products and services. Creating informative and relevant content can make a bank an authority in the industry and increase customer trust. Content can range from financial education, tips to prevent phishing, what to invest your bonus in, entrepreneurship, savings tips, financial inclusion, cryptocurrencies, how to apply for a loan, and credit card usage. The advantage of podcasts, unlike other formats, is the convenience of consuming content while doing other activities in parallel. Undoubtedly, this makes them attractive to the public.
4. Make your brand visible with SEO
Appearing at the top of Google is the dream of many businesses. The best part is that this can be achieved organically, that is, without investing in expensive advertising. SEO is exactly the kind of strategy that allows you to attract customers through content based on the queries your customers are asking on Google. For example, there are customers who ask "how to pay for an apartment mortgage", "what are mutual funds", "what are assets and liabilities" or "what are cryptocurrencies". You can make your brand more recognizable by writing articles that directly answer users' search queries.
However, for best results, it is important to choose keywords with low competition, which will be much easier to position yourself with because they target specific niches, as opposed to general keywords that are difficult but possible to find. Don't forget to hire SEO experts in your marketing team, invest in SEO tools, publish frequently, monitor the quality of your content, research your competitors, track the effectiveness of your articles with analytics and keep up with Google algorithm updates.
5. Utilize chatbots
Chatbots help banks provide 24/7 customer service, which improves accessibility and user experience. They answer frequently asked questions, provide information about products and services, and even help with processes such as opening an account or applying for a loan. Chatbots can also be used to study customer behavior, identify patterns and trends, provide information on security measures, and help customers protect their accounts from fraud and cyberattacks. They are trained to have natural conversations, almost as if you were chatting with humans, and are often present on WhatsApp, web chat, Facebook Messenger and Instagram to name the most popular channels.
6. Utilize email marketing
Another strategy that works for a financial institution is to utilize email marketing. For most users, this is still the ideal channel to receive offers, promotions, and valuable content. Before embarking on email marketing, set clear goals, perhaps increasing subscribers or web traffic. You can use this tool to educate, entertain, provide news, share tips and create a diverse community to which you can offer different solutions. It is ideal for building strong and lasting customer relationships.
7. Utilize video marketing
For now, the video format remains unrivaled. Banks can use this format in many ways, such as to teach basic financial concepts (saving, investing, lending and debt management), to share customer testimonials, to emphasize the appeal of their products and services, and to highlight news from their industry. Video allows for a deeper connection with your audience, engaging all of their senses and immersing them in the intended message. And it's not just for entertainment, as most users believe, but also for many other purposes, such as guidance (explaining a step-by-step solution) and developing awareness.
8. Use GPT chat
Among the suggestions to improve the bank, you can't fail to mention artificial intelligence. You can turn to GPT chat for basic advice on various topics of interest to your audience, but with human confirmation as the first and last filter to make sure you provide the right information and avoid disaster. It will also come in handy for creating objection handling scripts, complaint handling protocols, email templates and creative ideas for your campaign texts or translating programming languages code, as Banco Santander is doing from September 2023.
9. Rewarding customer preferences
Incentivizing customer loyalty through rewards programs, exclusive discounts, free financial education webinars, sweepstakes and other events will help increase customer retention rates. Customers appreciate being recognized when they are recognized, when they like it, and appreciate the time you spend coming up with things to make them happy.
Implementation and planning
Implementation requires detailed planning. First, identify goals and digital channels. Then work on content according to customer needs and preferences, distribute content tailored to each social network's formats and symbols, monitor effectiveness and make constant adjustments. To build customer loyalty, the bank can offer competitive interest rates, personalized attention, financial advice, rewards programs, and fast and timely service. Transparency and reliability are also key to customer retention.
Conclusions
Of all the strategies on this list, we recommend beginning with chatbots, SEO, video marketing, and mobile banking optimization. The rest of the strategies can be implemented gradually and depending on the maturity of the business. Don't forget to carefully qualify and segment potential customers. They are the main filter to ensure that you are working with highly qualified customers. Also remember that transparency and accountability for social progress are other key components that will ensure that customers will seek you out rather than you seeking them out.
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