The news: To maximize long-term customer value, banks and financial institutions (FIs) must shift their attention to re-engaging their disengaged customers, per a 2022 report from Forrester.
The report surveyed 154 financial services customer engagement strategy leaders in the US. Responses were fielded and the study was completed in May 2022.
Key stat: 66% of respondents said customers are disengaged, or not opening or reading communications from the bank or institution.
More on the numbers: 73% of respondents said that customers are opting out of marketing communications and other messages year over year. When considering the reasons for the waning engagement,
But banks and FIs understand that they must keep these customers engaged to earn their loyalty and trust and to maximize their lifetime value.
What are the challenges? Many of the FIs have an abundance of customer data to implement tailored marketing campaigns, but logistical challenges and undefined ownership rules stand in the way.
The CMO’s role: Research we completed for our report, Bank CMOs and Personalization, confirms that banks and FIs see implementing a personalized communication plan as a highly complex undertaking. It involves a lot of moving pieces that are tough to bring together quickly and in a timely manner. And the complexities grow with scale.
Banks and FIs must lean on their CMO to develop an effective customer communication strategy and lift up slumping customer engagement.
Our take: To truly focus on customers and spark their engagement, banks and FIs must take a step away from simply promoting a specific product the firm has agreed to sell and instead align their marketing to the products and services their customers actually need. And FIs should understand that experiential marketing along the entire customer journey is what will drive long-term customer value. Other supporting steps include:
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.