Scaling payments' learning curve has become much harder
Banks need to prioritize learning exactly how their customers are making payments today. This includes pinpointing the needs and concerns of customers with every new product, at every touchpoint and ensuring any new marketing efforts reflect how they have changed.
There are several considerations. Banks need to focus their digital transformation toward customer data. COVID-19 has revealed a vast need for digital transformations in bank settings. Now that face-to-face banking is radically altered, at least for the time being, banks must make an effort to know their customers better.
To keep up with fintechs and other digitally focused competitors like Apple, banks should look to improve the quality and quantity of their customer data, and use it to inform future marketing strategies, creating the best experiences possible for customers.
Digital transformation success isn’t instantaneous, however. There are obstacles and red flags to keep in mind when switching up strategies. While digital transformations can generate loads of new, quality data that is key to creating personalized messages and customer experiences, businesses must understand the responsibility that follows as well. Customer data protection is a primary concern here, and with PCI standards and regulations like CCPA and GDPR in full effect, it’s important to ensure any new digital components have security features that adhere to these guidelines.
Privacy needs to be a priority. For many consumers, the privacy surrounding contactless payments is unknown. While contactless cards and tap-to-phone payments may seem like the best option to complete sanitary and seamless transactions, security concerns may hold customers back.
At first, finding the proper avenues to communicate information may be difficult as members prefer to be marketed to across different channels — such as social media or email — many of which are based on generational preferences.
Ensure delivery of personal and timely communications. To ensure communication happens in the most effective way, banks need to prioritize data as a crucial part of their marketing strategies. Real-time data can help banks pinpoint where the customer engages most, whether it’s via call center, online or in person — allowing them to maintain pace with how the customer lives today.
For example, customers who are more receptive to email communications are likely to read an email from their bank about contactless payments or steps on how they are able to obtain contactless payment cards. Collecting and taking action on this data relies on a technology-focused foundation supported by innovative tools like customer data platforms (CDPs). Banks must revisit current technology when working on new marketing strategies — especially when it comes to personalizing messages for a range of customers.
The benefits of effectively marketing to banking customers does outweigh the challenges in the end. By recognizing the urgent need for a digital transformation and implementing the proper tools like a CDP to drive it forward, banks can set the stage for success when communicating with customers and keeping up with the latest trends like contactless payments.
The way banks choose to react to acquisitions within the payments space paints a picture for how business operations will look even post-pandemic. Those who are prepared behind the scenes through strong marketing strategies and even stronger digital foundations are the ones who will maintain a healthy business and satisfied customers.