Mobile Marketing for Finance Products and Services
It’s near impossible to argue the benefits mobile marketing offers a wide variety of industries, including finance. Over a third of major U.S. bank customers regularly turn to mobile banking, and as such it’s essential that marketers take full advantage of what this ever-evolving channel provides. Chase has some 12 million customers moving an astounding $6.5 billion through mobile platforms each month, and that’s just one example.
“For us, mobile is a critical channel, the fastest growing channel we have, and one that uniquely makes banking a lot more convenient,” says Robert Tas, Managing Director, Head of Digital Marketing at JP Morgan Chase. Tas understands full well the convenience mobile offers customers. “If I don’t have to get into my car and drive to an ATM to deposit a check, you could have saved me 30 minutes to an hour,” he says.
Let’s take a deeper look at the many benefits mobile marketing offers the finance industry:
Mobile marketing functions as a true gift to finance, as late-arriving low-balance alerts are just one of the ways to create seriously unhappy customers. A simple text message notification warning customers of their account situation, however? The loyalty such messages provide banks is invaluable.
And that’s just one way mobile ensures bank customer loyalty. SMS notifications regarding shady transactions is yet another way, as fraud and low-balance notifications are highly time-sensitive. Text also wins over email like nobody’s business, as send-to-open time for texts is 14 minutes, and email 6.4 hours. That’s one enormous difference.
Nearly 90% of American adults own mobile phones, and 75% of those send and receive text messages quite regularly. And unlike apps, text messages are compatible with every mobile device under our sun, and most open and read every single text that comes their way—95% of incoming texts are read, compared to 10% of emails. It’s therefore not a stretch to say text messaging is the best and most reliable form of mass communication currently in existence.
Return on Investment
For companies still on the proverbial fence in regards to mobile marketing, take note: texting equals profit. The technology’s cheap and easy to use, and the average SMS user makes more transactions, has bigger “basket size,” and revolves balances, resulting in that much more income for card issuers. As a bonus, the cost of sending promotions via text is much lower than other marketing means.
As Tracy Weber, the managing director for Consumer Interest and Mobile Banking in North America for Citi Bank notes, “To be able to delight them [customers] and provide things that really add value to their lives absolutely can go a long way in how they feel about this [mobile] category.”
It follows that the only question left to bankers who haven’t utilized this strategy is, “Why ever not?”