Interactive marketing strategies for financial services companies
27.marketing strategies financial services
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Transcript of 27.marketing strategies financial services
Advertising Networking Fine tune strategies to attract clients and
grow business. Direct marketing .. Brand recall. Place advertisements in trade publications,
regional business newspapers. Inform customers about ranking of the
company.
Financial Services – experience & credence factor rule.
Cultivate trust and relate to customers Demonstrate capability and credibility Participate in community events that can
make a broker visible to an investor Brokers can effectively network Word of mouth publicity Positive referrals. Use chamber of commerce/ other business
networks to reach new clients and build relationships.
Networking is key
Publish articles on topics in the industry – this shows the competency of brokers and research analysts.
Take part in conferences and meet potential clients.
Appoint a marketing agency to research the best methods of promotion and formulate a plan of action
Do market research
This is relationship business. Trust is very important.
Wireless banking is revolutionizing the financial industry. It's radically transforming both services and customer expectations in societies around the globe. End users are demanding access to their money and financial information anytime, anywhere. Financial institutions know they need to move quickly to capitalize on this new trend.
Wireless banking occurs when a customer accesses a financial institution's networks through cellular phones, pagers, and personal digital assistants (or similar devices) via telecommunication companies' wireless networks.
There is always an inherent risk in wireless banking
There are connectivity issues, protocol challenges, and a constant flood of new devices onto the market.
Large institutions may find keeping pace especially difficult.
For data managers, the challenge will be to deliver data effectively across every platform, protocol, browser, and service provider
BFSI – banking, financial services, insurance
India – companies still use traditional marketing channels to spread awareness about products and services.
Indian firms slow to respond to e-techniques.
Equity broking firms in India – push strategy through traditional sales channels.
Indian banking services slow to adapt to Digital Marketing tactics
Indian insurance sector more tech savvy as they have used Google ads, TV, display advertising, radio advertising
India Info line, Money Control.com have established digital business model.
Mutual funds like DSP Black Rock, Reliance Mutual fund smartly promote their services through facebook.
Reliance Life Insurance, SBI Life promote business through social media.
India Info line, Money Control.com are enjoying early digital adopter benefits.
Money Control best example of how one should design and develop their online financial content publishing business model and engage financial consumers on a digital platform.
Few portals for loan and insurance services provide comparisons and recommendations have been fetching good traffic.
Dalal Street Journal ‘s Stock Market simulation game is a good example for creating awareness and engaging financial target audience on a digital platform.
Companies need to rethink and adjust the way they acquire new customers and retain current ones.
Creation of brand advocates within the customer base is important.
Experimentation with digital techniques rather than ad words or display.
Digital tools – social networks, viral video, blogs, customer interviews, blogs
Maintain relationship Long term planning is very important.
Banks – every person in a bank is performing a marketing role.
Proper segmentation of customers – rural segment, urban, low income group, high net worth individuals
Processes important Understand changing needs and
requirements of industrial segment
Know competition Provide Bank Locker facilities Auto renewal of fixed deposits Use of Technology in Banking Credit card charges waived off for 2 years Advertising campaigns Phone banking, ATM, Internet banking Personal banking branches Excellent Customer service Reasonable bank charges, attractive investment schemes for family Loans Automation in processing transactions Attractive bank branches – physical evidence
Promotion plays an important role. Advertising Publicity Sales Promotion – a temporary offer that is withdrawn after
a particular period Personal selling – Agents, brokers Word-of-mouth promotion Tele marketing Distribution channels. Use of IT
Product – Customers invest in mutual funds with capital appreciation, liquidity and safety. So, marketers need to design the product keeping these objectives in mind,
Price – Net Asset Value (NAV) NAV = Value of net assets of scheme/ number of
outstanding units Price per unit of mutual fund includes charges
levied by the company which is called load. Price of a mutual fund depends on the
performance of stocks held by the fund, stock market trends and also reputation of mutual fund company.
Distribution channels – own employees, agents, third party distribution companies, banks and post offices.
Many mutual funds have tied-up with banks to sell mutual funds through bank’s distribution channels.
HDFC Mutual fund and Reliance fund have tied up with Union Bank of India
LIC Mutual Fund has tied up with Bank of Rajasthan.
Post offices
Market competitive Differentiation is important Personal selling Advertising Strategic tie ups Innovation
Simple process design Better service quality Reduced Costs
Train employees, agents, distribution companies
Knowledge of mutual funds Companies use channels of distribution
like banks and post offices to give credibility to their services.
Companies also use their service personnel to reduce the perceived risk of customers.
Chandrasekhar
based on ‘Strategy of Proof’, a global Axa framework.
Proof is nothing but tangible evidence of answering customers’ queries about expectations in a manner that nobody else has.
On line term insurance policy across all towns in India
Tie ups with hospitals and doctors
Nation wide campaign Build greater customer awareness The digital platform is very crucial.
They worked hard on Search Engine Optimisation (SEO) and high impact banner ads on the Internet.
E-mail campaigns for behavioural targeting. Target internet users who particularly use
themedium for personal financial needs such as insurance. Contextual advertisements ensure thatrelevant messages appear on relevant websites when people search for such products.