Data Snack: Are banks making the most of marketing?
- As banks become more of an option among many in consumers’ eyes, banks are paying more attention to how to better market themselves.
- But gaining insight from the marketing data collected may still be a challenge for a lot of incumbents.
Banks are in a period of transition, going from staple institutions to just another bunch of competitors in the space. That means that while in the past marketing may not have been as important for banks’ survival, it’s playing a much bigger role now.
Banks are definitely taking into account the importance of marketing in their business strategies. Almost every bank surveyed said they hire people for advertising roles, according to a survey by the American Bankers Association. Meanwhile, over 90% of these banks seem to be hiring for other roles, as well – including social media management, marketing strategy, and PR, among others.
But marketing isn’t just about getting more users – it’s about keeping those users, as well.
The information gathered from marketing initiatives and content could provide insight into users’ interests, preferences, and perceptions of the company.
And in this area of understanding, banks may still be lagging a bit. For example, only about 55% of the banks surveyed say they hire marketing professionals in the realm of data and analytics. Meanwhile, just over half are investing in talent within the market research and customer experience space.
It seems banks aren’t poo-pooing marketing. But they may not be taking it seriously enough to get the most out of it, either – especially in terms of tailoring the customer experience.
Coupling ABA’s survey with McKinsey’s recent research, you can start to see a pattern in banks’ bumpy relationship with leveraging marketing data. For example, only 28% can smoothly integrate collected data into AI initiatives, according to McKinsey. Meanwhile, less than 10% know how to get valuable insight from the campaigns they launch.
The main takeaway may be that while banks are spending a lot of energy on seeking out ingredients, they’re spending a lot less energy on figuring out what to cook with them.