tag:blogger.com,1999:blog-8930153101988441660.post8570018131368758339..comments2023-10-20T11:33:42.846-04:00Comments on Bank Marketing Strategy: As Channel Proliferation Increases, Consumers Still Prefer and Trust Direct Mail for Financial Services CommunicationAnonymoushttp://www.blogger.com/profile/05424097007271218756noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8930153101988441660.post-1626288382102897492012-01-03T12:03:08.986-05:002012-01-03T12:03:08.986-05:00What strikes me most about this data is that virtu...What strikes me most about this data is that virtually NO marketing channel is "trusted." All preferences aside, the most trusted media studied (direct mail and company websites) still make a weak showing at only 21%. So while people may prefer to get direct mail, most still don't trust the message they receive.<br /><br />Some in the banking industry have woken up to this (i.e. USAA, Amex, Charles Schwab, Navy Federal CU), and have started gathering and publishing ratings and reviews from their customers on their website, letting their customers' authentic messages do the job of building trust - with measurable results. Over 9 months, USAA generated 16k+ more conversions from pages with consumer-generated content vs. pages without it. <br /><br />Forrester research notes that 78% of consumers trust online reviews/WOM, and more than 60% rely on it to make purchase decisions. Banks and credit unions who gather and publish reviews from their customers are seeing increased conversions, enhanced impact of traditional and online media backed by authentic consumer input, and deep insight into what customers/members think about the FI's services. Their customers' input is contributing to the bottom line while helping FIs improve services in ways that are directly tuned in to their customers' preferences.<br />It simply no longer makes sense to keep pouring marketing dollars into distrusted channels, especially those like TV, radio, and print, whose results can only be measured indirectly at best. Retailers figured this out years ago, which is why virtually no major retailing site is without some form of consumer feedback to build trust and provide decision information at precisely the time the consumer is in the market. They use traditional marketing to acquire attention, and back their value proposition with reams of testimony from their customers on their websites. <br /><br />More banks and credit unions should take a page from that successful playbook.Kent Whitehttps://www.blogger.com/profile/15610482811563166663noreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-42414565546079537132011-12-05T11:48:52.088-05:002011-12-05T11:48:52.088-05:00"The study also shows that companies have mos..."The study also shows that companies have most likely overplayed their hands with email"<br /><br />"Every channel requires effective and efficient targeting with messaging that solves issues as opposed to selling product." <br /><br />These are both excellent points Jim. Regarding email, in the words on Don Henley, "...call someplace paradise and you can kiss it goodbye."<br /><br />Targeting is critical but we're finding that getting to messaging that solves problems, we need to better understand the individual customer's situation - which is why we digitally interview prospective customers before suggesting a solution.Devonhttps://www.blogger.com/profile/03809815374794223168noreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-27780765472973229522011-12-05T05:30:17.151-05:002011-12-05T05:30:17.151-05:00The great thing about direct marketing is that you...The great thing about direct marketing is that you don't have to necessarily take notice of research. We can test and see what works for ourselves. And even when we don't have a specific response we can still measure. We used to work on HSBC's customer newsletter (mailed out with customer statements). Sure it had items where we could measure response but we also wanted to measure the impact of the newsletter on customer behaviour. So we had a control group and we measured (over time) bank balances, products held, average time with the bank etc. and we found that these were all far larger with the people who had got the newsletter. <br />So although research can guide our strategies we should never forget that we should test!!Motorcycle Marketerhttps://www.blogger.com/profile/04411054708936704936noreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-69393189394758145862011-12-04T20:34:21.495-05:002011-12-04T20:34:21.495-05:00Maybe your faith in humanity is not restored since...Maybe your faith in humanity is not restored since more than 60% of households looked forward to going to the mailbox. The 36% was the percentage of people who preferred direct mail (only 7% preferred email).<br /><br />The significant takeaways from this study are that no channel can stand alone and banks (and any business) need to test for the best media mix. The study also shows that companies have most likely overplayed their hands with email, causing people to ignore this channel as they did with untargeted direct mail.<br /><br />Finally, it serves as a warning that while social media has the potential to be powerful due to the reach and penetration, it too could create backlash if not correctly integrated with other channels.<br /><br />In the end, the consumer holds all the media consumption cards and any organization the carpet bombs people with messaging will suffer from lost readership and customers. Every channel requires effective and efficient targeting with messaging that solves issues as opposed to selling product.Anonymoushttps://www.blogger.com/profile/05424097007271218756noreply@blogger.comtag:blogger.com,1999:blog-8930153101988441660.post-33783132489402883102011-12-04T17:59:37.377-05:002011-12-04T17:59:37.377-05:00Without knowing the statistical details of these s...Without knowing the statistical details of these studies, it's hard to know what's significant here but, it looks like print and company websites have the edge in trustworthiness over various forms of social media - at least in the U.S. It would be interesting to see the trend data.<br /><br />Some of the questions seem to be reaching, like, 36% of respondents agreed that, "receiving postal mail makes me feel valued." Thankfully, that means 64% of people don't -- my faith in humanity partly restored. <br /><br />Overall, I agree that FI marketers won't abandon traditional channels anytime soon but, they should -- as you state Jim, measure the impact of each channel. What's the cost of acquiring a customer in each channel and how many customers does that channel deliver per quarter? And what's the profitablity of those new or cross-sold customers? Those remain the key questions --Devonhttps://www.blogger.com/profile/03809815374794223168noreply@blogger.com