Getting Americans to choose a local financial institution over a megabank, with their supersized marketing budgets in tow, is a difficult feat. The solution? A multi-channel marketing program.
Kasasa research suggests that implementing a multi-channel marketing program is essential for community banks and credit unions to raise consumer awareness, which is key to competing with their megabank competitors.
When done the right way, a multi-channel marketing campaign can help community banks and credit unions attract greater consumer attention and is significantly more effective than a single-channel campaign, to the tune of 250% better.
Let's dig in.
We're glad you asked. In the simplest of terms, multi-channel marketing refers to the ability to interact with prospective customers through various channels including (but not limited to) social media, print media, paid search, direct mail, landing pages, streaming media and websites. Sometimes, multi-channel marketing is referred to as cross-channel marketing.
Exactly the opposite. Single-channel focuses on one platform to engage with its target market. Also known as siloed marketing, single-channel marketing programs are typically a response to 'the next big thing' trends. For a long time, it was direct mail, then email. Typically, businesses choose a single-channel marketing program when budget is tight, or they want to dominate one area.
Multi-channel marketing is a response to a shift in the way people consume marketing and advertisements, as well as technological advancements. Customers today are consuming media across several different channels and marketing in just one runs the risk of missing your ideal targets altogether. Multi-channel marketing empowers customers to respond and to purchase your service or product using the channels they prefer.
Now that those pesky definitions are out of the way, let's get down the business.
The greatest multi-channel success comes from creating cohesive cross-channel marketing strategies. Specific strategies will vary based on the bank or credit union’s market, but a multi-channel program should ideally consist of five or more of the following:
For example, in a rural area, print media should be used to increase visibility while direct mail is a useful way to engage with prospective account holders.
Consumers in the suburbs respond well to financial institutions that host community events and connect with them one-on-one through social media or email with content focusing on education and community.
Roughly three quarters of Americans would choose a local financial institution over a megabank if they had equal banking products. Unfortunately, a little over half of Americans (51 percent to be exact) believe those same local financial institutions they'd prefer to bank with do not have the resources to offer the same level of innovative, user-friendly products as national megabanks or online-only banks. We know that is just not true.The majority of local banks and credit unions have comparable, if not better offerings than the megabanks.
By implementing a multi-channel marketing program to promote product offerings, community banks and credit unions can better attract and retain customers.
By offering products that equal or even outperform those found at megabanks and maximizing the effectiveness of various marketing channels based on their target market, local banks and credit unions have serious opportunity to Take Back Banking.