Why Financial Services Should Cash in on a Mobile Location Strategy
The rise in digital-banking is not slowing down, forcing financial institutions to constantly shape and redefine their advertising and marketing efforts to better suit the needs of their customers. Placing a priority on digital technologies is no longer an option; it’s a necessity.
The most successful organizations – including banks and financial institutions – are using every touchpoint to stay on the radar of digitally-inclined audiences to capture, retain, and increase the lifetime value of their customers while also acquiring new ones.
However, suffice it to say that not all customers are created equal, (i.e. Millennials vs. Gen Xers). The challenge is the ability to define and understand who those customers are in order to better service them with relevant offerings anytime, anywhere, and on any device.
Simply put, financial service organizations are tasked with providing the best possible customer experience for all ages and through all financial stages of life.
Investing in a Location-Based Mobile Strategy Reaps Rewards
Consumers want relevant advice and product information at their fingertips as they go about their daily lives. So having a mobile app is a no-brainer for financial institutions. Even more, according to a 2017 Financial Study by Accenture:
54% [of consumers] want specific real-time offers based on their location (i.e. retail offers based on location and credit card activity).
The study also revealed that 58% of consumers would like banks to send them information about services exactly when needed (i.e. information about mortgage deals when house-hunting).
Given these statistics, it seems obvious for banks to have a mobile strategy that enables location technologies in order to improve advertising and marketing, manage customer expectations, and build loyalty.
Location Intelligence and Mobile are a Credible Pair
There are a slew of use cases that banks can take advantage of once they’ve formulated a mobile strategy.
And just to point out, although banking has become digitized, the branch still holds a powerful place for customers.
Banking customers are not yet ready to forgo the branch. In fact, easy access to a branch was the third biggest driver of loyalty.1
Some banks may choose to optimize the ATM and drive-up experience through the use of beacons by enabling location identification/authentication of a customer via their banking app. This technology also allows for cardless ATM entry and access to account withdrawals using the banks own app.
Additionally, these technologies can aid in transforming the branch experience. How?
- Acknowledge and greet (VIP) customers as they enter the banking center through beacon technology
- Track branch activity, understand customer flow in branches, and improve operations
- Send post-visit surveys for feedback on banking experiences
Improve Mobile Offering, Increase Engagement, and Enhance the Experience
Let’s delve a little deeper into what’s possible for financial institutions:
- Personalize location-triggered mobile messages based on your customer’s purchase history, behaviors, and preferences
- Real-time messaging around relevant bank offers and promotions based on customer preferences, needs, and context (physical environment)
- Utilize beacons and geofences to run more relevant advertising and marketing campaigns based on a consumer’s location patterns, i.e. frequent visits to car dealerships, airports, sports arenas, etc.
- Build loyalty by providing rewards/points when a customer approaches specific locations or points of purchase
- Provide bank-related news such as local community events and sporting events that a bank may be sponsoring
- Segment audiences based on location data for up-sell/cross-sell opportunities
- Understand which customers are most likely to visit and how long they dwell
The Bottom Line
It seems almost impossible to solve for the many needs and wants that customers demand from their financial institutions. However, having a mobile-first location solution in place offers a more complete understanding of the customer’s journey inside and outside of the branch for richer data insights and, most importantly, to help round out omni-channel efforts.
1Accenture Financial Services. Global Distribution & Marketing Consumer Study (2017). Beyond Digital: How Can Banks Meet Customer Demands
Interested in adding location data as a line item in your mobile (app) strategy?