A 2023 survey of bank marketers reveals that nearly 50 percent of bank marketing departments are responsible for bank data and analytics functions. Although use of data and analytics is not typically considered a marketing discipline, more bank marketers are tasked with executing a strategy around these. And that means it is more important now than ever to demonstrate the value that using data and analytics can have on improving marketing and business results across the bank.
There are a few key ways using data and analytics can help to improve marketing results:
- Creating better understanding and communication with target audiences.
- Improving targeting and segmentation.
- Optimizing performance results.
- Increasing efficiency using technology.
Understanding your audience to effectively communicate
Data and analytics can help you better understand your target audience by providing insights into their demographics, interests and behaviors. This information can be used to create more relevant and personalized marketing messages that are more likely to resonate with your audience.
For example, if your bank is trying to acquire younger core deposit customers in 2024, there is market data and research to suggest what attributes of a financial institution are most important to these younger consumers and what products or messages will resonate with them.
Analytics can also suggest the best marketing channels to reach your target, as each segment will have different media preferences where they find their information and learn about new products. For instance, if you are trying to reach certain consumers, traditional media such as TV, newspapers and direct mail is more effective. However, younger consumers are more likely to use digital channels to find information about financial services and products. Therefore those channels will be more effective in reaching your target audience. Your advertising agency or media studies can provide insight into each customer segment’s media habits.
Another key way to use analytics to improve effectiveness in communicating is by identifying “triggers” or behaviors among your existing customers to target them with specific messaging to retain or deepen relationships. Using this data can provide a very targeted campaign with high response rates. Examples are numerous, but can include large deposits, large withdrawals, loans that are one payment away from being paid off, customer change of address, customers with large monthly credit card payments to another institution (all first party data). Three common and successful third-party data triggers are: A of customer applies for credit; searches for a financial product; and prospects move into your branch trade area (new mover list).
Drill down on the next three key ways using data and analytics improves marketing results on ABA Bank Marketing.
