Alright, yes, there are significant problems in the banking world. But instead of dwelling on the negatives, let’s look at how banks and credit unions can crush it during a recession. As the global economy faces tough times, financial marketers need to step up their marketing game to survive.
Here are four ways financial marketers can adjust their approach to stand out from the competition and provide massive value to customers.
Focus on existing customers:
In times of economic uncertainty, keeping your existing customers happy is paramount. It’s time to ensure that your Customer Service teams have the resources they need to fight for and retain customers.
First up, prioritize communication with your existing customers. When times get tough, keeping your loyal customers is the name of the game. You need to show your customers that you’re there for them and can help them navigate these choppy economic waters.
That’s why you must prioritize regular and meaningful communication with your customers through multiple channels, such as email, social media, and direct mail. And don’t just give them generic information – offer customized solutions that meet their specific needs. Doing so can build deeper relationships with your customers, increase customer loyalty, and thrive even when the going gets tough.
Did you know that it costs five times more to acquire a new customer than to keep an existing one? A report by Forrester Research confirms this fact. But here’s the exciting part: increasing customer retention rates by just 5% can skyrocket your profits by 25% to 95%! That’s right, by focusing on keeping your current customers happy, you can significantly boost your bottom line without breaking the bank on expensive acquisition strategies.
Focusing on existing customers doesn’t mean abandoning new leads, in fact, when you’ve gone above and beyond to keep your existing customers happy, don’t be afraid to ask them to spread the word about your brand. Satisfied customers can also leave glowing reviews online, which can be a powerful motivator for new customers who might be in need of your services. By leveraging the goodwill of your current customers, you can tap into a valuable source of new business while minimizing your marketing spend. So don’t be shy – ask your customers to help you grow your business and watch your bottom line soar.
Don’t underestimate the power of communication – it could be the key to your success during a recession.
Provide financial education:
When times get tough, people start to freak out about their finances. This is your chance to step up and provide value like never before. By offering financial education and resources, you can be the hero your customers need and build stronger relationships with them.
You can provide financial education in so many ways. You can host webinars, create online courses, write blog articles, and even offer one-on-one sessions with financial experts. By doing this, you’re not only providing value to your customers, but you’re also showing them that you care about their financial well-being.
Emphasize financial security and safety:
With so much panic and fear in the banking industry, your customers are looking for one thing above all else: financial safety and soundness. And if your bank can’t deliver on that front, you’re in for a world of hurt.
To showcase your bank’s financial strength, don’t be shy about touting your rock-solid metrics, such as capital ratios and liquidity ratios. But don’t stop there – make sure to communicate updates on your bank’s financial performance and highlight your unwavering commitment to sound banking practices. And remember, it’s not just about throwing numbers around – use language that connects with your customers and addresses their worries about financial safety and stability. After all, you want your customers to feel confident in your bank’s ability to weather any storm.
Be transparent:
If you want to win over customers in tough economic times, you need to be transparent as crystal. That means pulling back the curtain on your bank’s financial products, services, fees, and rates – and not hiding anything in the shadows.
But transparency isn’t just a buzzword – it’s a critical component of building trust with your customers. During a recession, your customers want to know that they can count on your bank to be upfront and honest about all the financial nitty-gritty. They don’t want any unpleasant surprises or hidden fees popping up out of nowhere.
So, how can you be more transparent in your marketing efforts? Start by providing clear and concise information about your bank’s products and services, including any fees or rates associated with them. Use plain language that your customers can understand, and don’t try to hide any important details in the fine print.
But being transparent isn’t just about what you say – it’s also about what you do. Make sure your bank is following through on its promises, and that your customers are getting the level of service they expect. And if something does go wrong, own up to it and take responsibility – that’s the mark of a truly transparent organization.
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” – Sam Walton
By prioritizing transparency in your marketing efforts, you can build trust and loyalty with your customers even during tough economic times.
Now is the time to step up your game!
Financial marketers must adapt their strategies to survive and thrive during a recession. By focusing on existing customers, offering flexible payment options, providing financial education, emphasizing security and safety, and increasing transparency, banks can differentiate themselves from their competitors and provide value to their customers in uncertain times.
