Welcome to the Dove Direct Print and Marketing Blog. Today's post, "Shifting Trends in Financial Marketing," examines financial industry marketing strategies in the face of Covid-19, changing consumer behavior and emerging opportunities. In short, financial markets like every other industry have changed due to the cruel assault triggered by the pandemic. While we sympathize with those who tire from constantly hearing about Covid, the reality is that Covid is still with us and will most likely impact our collective behavior throughout 2021. In the financial market arena, marketers and brands face challenges that evolve around in-person banking. Although some may disagree, consumers may say that COVID killed the human element in banking. As human interaction is a critical component of how we communicate, that element will need to be rethought going forward. Organizations that historically engage through face-to-face communications will have to rethink how to engage. Appointments via text, chat, video, phone call, or even an online appointment form are now regular. However, these efforts fail to humanize the marketing aspect that promotes trustworthiness. As we shed light on the shifting trends in financial marketing, it is important to remember that direct mail now plays a leading role in securing trustworthiness over all marketing mediums.
Our Quote of the Day: "You can only become truly accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing, and then do them so well that people can't take their eyes off you." - Maya Angelou
The Digital Matrix Conundrum
Covid has driven behavior changes across the worldwide spectrum. The banking and financial sectors deal with a double-edged sword in how to best navigate the digital matrix. For example, the county's largest bank, JPMorgan Chase, is grappling with branch expansions. At the same time, BAI and Visa subsidiary Plaid have referenced that greater reliance on digital channels will continue after the pandemic's worst and suggest that any financial institution that chooses to ignore the shifting trends caused by COVID do so at their peril.
BAI's report examines the utilization of digital services offered by banks and credit unions, in conjunction with Plaid researching the accelerated usage of fintech apps during the pandemic. The BAI study found that one hesitancy concerning engaging through digital came down to fear, not the fear of COVID, but the fear of fraud. That is not surprising when you consider that 25% of consumers remain late digital adopters, with fraud being one of the primary reasons for their failure to adopt technology for use in financial transactions. As the financial market grapples with the fintech challenges, the USPS remains steadfast in trustworthy marketing initiatives.
The USPS: The Most Essential Organization for COVID-19 Responses
A Harris Poll Essential 100 recently deemed the USPS as the most essential organization during the COVID-19 pandemic. The report states that the USPS ranks ahead of Clorox, Google, UPS, Walmart, and Amazon. The criteria for this report evaluated organizations based on resolve, trustworthiness, responsiveness, and permanence. For example, how much would you miss the USPS if it closed for good?
During the pandemic, people prioritize health, safety, trust, a sense of community, and togetherness. The USPS is considered part of the solution and, in many cases, a lifeline that connects people with the things they need most. Direct mail allows brands to associate with the exceptional reputation of the USPS. That brings us to the market aspect of print collateral and what direct mail brings to the table.
Direct Mail Increases Multi-Channel Responses
The financial sector can benefit from using direct mail marketing to complement any digital marketing strategies. A 2020 PFL survey noted, "When direct mail is part of a multi-channel marketing campaign, respondents were more likely to report a good (69 percent) or very good (8 percent) response rate." Those that did not include direct mail reported (62 percent and 3 percent, respectively)." The respondents also stated that they believe their response rates increase 8 percent, thus achieving a good or very good ROI by using direct mail.
In addition, the PFL report found that dimensional mail performs better at brand representation above other direct mail collateral formats, as confirmed by 88% of the respondents. Dimensional mail can be very creative and refers to boxes, cubes, spheres, popups, and other multi-dimensional configurations.
Omnichannel Financial Marketing
Another shifting trend in financial marketing is how customer touchpoints are evolving from the few large-scale touchpoints, such as bank visits, on an annual basis, to customers' behavior deciding to access via micro touchpoints. This behavior suggests that consumers are willing to interact with bank brands on a regular timetable. Banks are rapidly capitalizing on this shifting trend. These institutions are beginning to understand the value omnichannel marketing affords brands, including increased engagement, and as a result, more consumer interaction builds trust and loyalty. Financial institutions are adopting more omnichannel mediums, from social media, apps, and even SMS, which increases touchpoints and brand visibility to further cement consumer trust. That said, it is important to keep in mind that print and direct mail marketing initiatives represent the most trustworthy of all marketing mediums.
Other Shifting Trends
There are other shifting trends in the financial marketing sector, such as:
- Data-Driven Digital Marketing for Financial Services
- Building Micro-Moments
- Predictive Analytics for Financial Services Marketing
Personalization in Financial Marketing Services
The move to all things digital represents a two-fold challenge for financial interactions related to the issues of fraud and hacking. As banks and financial institutions have experienced, the line is particularly fine to achieve trustworthy interactions based on security. Therefore, these shifting trends will continue to reflect market conditions on the ground and the pandemic's evolution as we move forward.
The Net-Net
The good news is that the COVID Relief Bill is getting underway, and over the next several months, the economy should get a massive jolt. The relief will provide more access to capital, help shore up financial markets, open schools, speed up vaccine initiatives, and create better workplace stability. All of which should help financial brand marketers. Thanks for reading "Shifting Trends in Financial Marketing."
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