With the rise of the digital space, organizations find it necessary to enjoy performance marketing in their marketing strategy to reach their target audience, devise campaigns, generate better leads and track ROI. Having a digital presence is now crucial for all industries and sectors to support vigorous digitization and urbanization. The BFSI (Banking, Financial Services and Insurance) sector is rapidly using performance marketing concepts to add value to the ways it does business and to maintain its importance as a major contributor to the Indian economy.
The BFSI sector was once oversaturated with traditional media, but with changing customer demands, they have managed to implement digital marketing to cater to simplicity, convenience and digital presence.
Intrinsic Role of Performance Marketing in BFSI Industry
Because of the specific niche, he argues, the BFSI sector faced challenges in moving away from traditional methods. However, organizations took action, mitigated risks, and analyzed markets and outcomes to make performance marketing work for them. The common implementation of this strategy was to increase the efficiency of ads and experience results based on performance. Tactics then moved to measure cost per click (CPC), cost per sale (CPS), cost per impression (CPM), cost per lead (CPL) and cost per acquisition (CPA) for track your ad cost under performance marketing essence.
Performance marketing is used more as a creative and effective method to diversify audience, expand reach and capture valuable information to make efficient data-driven decisions.
The use of performance marketing channels is becoming the norm and the selection of digital marketing strategies such as banners, native, content, social media and search engine optimization (SEO) depends on the response target audience analytics on different platforms. Analyzing campaign data is made easier with performance marketing, which also allows businesses to see how their ad is performing and optimize ad spend accordingly.
Improve customer experience (CX) by going completely digital
Banks recognized that millennials tend to prefer digital banking in the comfort of their homes rather than visiting branches and dealing with the hassle. According to a YouGov survey, 30% of young customers switch to neobanks for benefits such as zero balance provision and stress-free online withdrawals. Banks therefore preferred to target these customers on social media as they spend most of their time online and ads are more effective as millennials are already comfortable transacting online. Also, to synchronize with a wider audience, BFSI organizations initiated a ‘user-driven’ approach. It includes going “omni-channel” to deliver a seamless experience to your customers across multiple touch points. In the essence of rapidly changing business environments, performance marketing strategies must be superior to achieve better customer acquisition and retention.
Agents and brokers connect potential customers using video bots to answer their inquiries. Customers can ask questions, send individual proposals, search for appointments and facilitate online transactions using these bots. Also, companies used the process of ASO (App Store Optimization) to increase the install rate. As the pandemic also accelerated the digital agendas of insurance companies, they understood that customers need one-click insurance purchasing, 24/7 availability, and fast delivery of relevant information. Going completely digital has proven profitable for insurers. Mckinsey & Company echoed in a research report that automation reduced the cost of the claim journey by 30%, which facilitates earnings and improves revenue opportunities. In addition, insurance companies are meeting the digital desires of customers, such as low-cost, transparent and high-quality services, making them winners in the markets.
A road map for the future
According to Allied Market Research, the global digital transformation in BFSI market will reach $164.08 billion by 2027 at a CAGR of 15.4%. So, as long as these performance and digital marketing trends hold, the BFSI industry can anticipate customer needs and measure their campaigns while designing new methods of customer engagement. Landing pages can be further optimized to attract target customers with compelling value propositions. CPC ads for customers can be enhanced with personalized content and relevant keywords. Performance marketing allows businesses to consider programmatic media buying, which can identify them to their target customers with the right message at the right time and in the perfect location. Performance marketing also means less risk, cost and effort for BFSI organizations as they launch fewer ineffective campaigns, which improves customer retention and profitability.
The article is written by Hitesh Trehan, founder and CEO of Sense Digital.
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