7 rules a Fintech must follow to succeed with its marketing strategy
- Building a quality product is the first step toward success in the Fintech industry, and deploying the right marketing techniques stands as the greatest challenge marketers face in growing their product reach in an increasingly saturated market.
- There are four business metrics that are guaranteed to help Fintech companies orient their marketing techniques. Those are: cost per customer acquisition; average value per customer; percentage of active users; and virality coefficient.
- Fintech companies must strive to understand their clients on a deeper level, by way of their careers, social channels, hobbies, and interests, even including what they tend to search for on the web.
- Social networks are the ideal channels to connect with customers. Focusing on helping rather than selling is essential to building trust and loyalty between the company and the user.
- A rewards system is not only a way of capturing users, but it is also a way of building customer loyalty and rewarding them for their contribution to the project.
You don’t need to be the Wolf of Wall Street to have heard the term Fintech floating around. Yet many are not actually aware of what the term means, or what kinds of products or services fall under its umbrella.
This is because the Fintech landscape encompasses a broad range of businesses, though they usually share some commonality as digitally-oriented financial products and/or services.
Fintech companies seem to be the way of the future — the Bitcoin boom and overall rise of digital assets made that clear. Global Fintech funding has skyrocketed in recent years, reaching $ 100 billion in investments.
This begs the question: How do Fintech’s finest ideas blossom into successful companies? How do they ultimately join the “100 billion?” A strategic marketing plan is the answer.
Building a quality product is the first step toward success in the Fintech industry, and deploying the right marketing techniques stands as the greatest challenge marketers face in growing their product reach in an increasingly saturated market.
An innovative product and/or service in the market can greatly leverage the power of marketing, but in Fintech, there are no secret recipes or magic wands. What we do have is a list of seven rules that will enable a Fintech startup to reach new heights of success.
1) Measure, measure, measure!
First and foremost, there are four business metrics that are guaranteed to help Fintech companies orient their marketing techniques. Those metrics are cost per customer acquisition, average value per customer, percentage of active users, and virality coefficient.
Increasing return on investment and scalability are the ultimate goals of any startup, Fintech or not. In addition, the virality coefficient measures the likelihood of the product to be recommended, helps reduce the cost per acquisition and increase the return on investment.
The percentage of active users indicates the success of the product in the market, which is the most complicated goal to achieve today for any startup. All company departments must be aware of their importance and focus on constantly improving these four business KPIs.
2) Customers must be at the center of decision making
Forming an emotional connection with the ideal customer is the basis for building a well-focused marketing strategy.
Fintech companies must strive to understand their clients on a deeper level, by way of their careers, social channels, hobbies, and interests, even including what they tend to search for on the web.
The customer journey, which plays an integral role in every company’s success, can be broken down into five stages: awareness, consideration, acquisition, loyalty, and virality.
Having a customer actually help build a specific product or service through their participation is crucial in creating a truly collaborative product and humanized brand.
3) Public relations: Otherwise known as the best friend of brand awareness
A Fintech company is usually a visionary project that aims to accelerate the economy of the future, an economy much more personalized and profitable for the people.
It is an optimistic aspiration, that garners interest from journalists, as representatives of the greater audience. The press allows companies to present and explain their “baby” in-depth and receive great coverage in a way potential new customers can understand, become enticed, and hopefully hooked.
4) Using social networks to humanize Fintech brands
The future of Fintech brands is human. Although chatbots, artificial learning, and automation help companies deliver fast service and a customer-centric experience, in a historically boring and complicated industry, speaking to people in a language they understand is important.
Social networks, in this case, are the ideal channels to connect with customers. Focusing on helping rather than selling is essential to building trust and loyalty between the company and the user.
This is critical when creating a social media strategy that generates leadership within an industry that relies on strong customer relationships.
5) Machine learning to find Fintech customers
The use of machine learning (ML) or artificial intelligence (AI) is circulating in the Fintech space.
A system based on machine learning, like the Google universal app campaign, can be extremely beneficial, as it allows companies to find a target audience among a large reach, allocate budgets in the channels where the target is located, optimize messages, and meet customer needs.
6) The referral program aka the most exclusive membership in town
Customers are the best brand ambassadors for companies whose messaging may appear a little confusing at first. A referral program unleashes a source to evangelize the product and/or service, by rewarding a customer monetarily for bringing a friend.
This channel can give Fintech companies a continuous flow of new customers and today accounts for 40% of total acquisitions. A rewards system is not only a way of capturing users, but it is also a way of building customer loyalty and rewarding them for their contribution to the project.
7) Despite the ‘boring’ Fintech sector, creativity is key
The Fintech industry has always prioritized innovation and retains a highly technological marketing approach.
In recent years, the industry has seen some examples of companies that have gone one step further in their marketing strategies to make creativity a differentiating point, as MoneySuperMarket did in its #EpicStrut campaign.
Monzo the digital mobile bank took the same route with its marketing campaign titled, Disrupting Marketing with Radical Transparency. Rather than hiding terms and conditions and speaking in financial jargon, which is common in the traditional banking system, Monzo grounded its campaigns in “radical transparency.”
Instead, Monzo focused on communicating with its customers openly and honestly, treating them like people, rather than just bank accounts.
The marketing world, unfortunately, can be kind of cloudy in terms of what will exactly work for a certain product or service at a given time.
What remains clear is contrary to popular belief, a strategic and creative marketing plan does have a place within Fintech companies, and will leverage them as industry leaders.
Whether it’s your first Fintech endeavor or an already established company, these seven rules can take any Fintech startup to the next level.
Laura de Castro Braulio, Head of Marketing at 2gether, the first crypto-focused challenger financial platform, has over eight years of experience working for startups in the expansion phase, leading the growth strategy of companies. She began her career specializing in digital marketing, and her experience at agencies in the industry have allowed her to master digital marketing in various sectors, including food, health, digital products, fintech, and insurance. Her skills and entrepreneurial spirit have enabled her to lead the growth strategy for 2gether.
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