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Bank marketing: CX learnings for financial services from challenger banks

Author's avatar By Dave Chaffey 20 Jan, 2021
Essential Essential topic

Implement research-driven, customer-centric marketing to truly optimize your finance or bank marketing strategy and compete in a competitive digital landscape

A recent study of challenger bank marketing tactics caught my attention since it highlights the digital disruption in the financial services industry. What can businesses learn from this challenge in a situational analysis of their own environment, and how can marketers optimize their financial services marketing using this research?

If you're a marketer in the finance sector right now, you will have witnessed huge changes in the industry in the last 12 months alone, with more customers making financial decisions online leading to increased competition and challenges for financial services and banking industry marketers in both the macro and microenvironment.

Therefore, using research such as the challenger banks case study below can help you structure a winning marketing strategy. As we know, the first stage in a marketing plan is a situational analysis, so let's apply the findings in the context of external competitor benchmarketing and internal capability analysis.

Bank marketing and competitor benchmarking

We know that customer experience is a crucial element of all financial services marketing. But did you know how much the digital experience changes between competitors?

The research below considers the entire integrated customer journey from non-customer to active bank account owner. Interestingly, It took 5x as many clicks to open an account with First Direct, than it did with Revolut.

Benchmarking your competitors isn't just about the number of clicks it takes to open a bank account. In fact, all key factors that affect your commercial performance should be regularly assessed and reviewed against competitors.

The RACE Framework can guide your planning here, since this step-by-step process supports you to break down the customer journey for more meaningful analysis through Reach, Act, Convert and Engage.

Omnichannel Marketing funnel

Strategic benchmarking to plan and optimize your financial or bank marketing performance is crucial at this time in particular with competition so high. That's why we recommend our dedicated competitor benchmarking with RACE module, this module sits in the Plan dashboard in the RACE Practical Digital Strategy Learning Path for Business Members.

Our benchmarking tool covers benchmarking at each stage of RACE by the following metrics:

  • Tracking metrics
  • Performance drivers
  • Business value KPIs
  • Customer centric KPIs (example below)

RACE benchmarking marketing

The Plan dashboard within the RACE Practical Digital Strategy Learning Path has resources to help you in every stage of planning your bank marketing strategy, with modules including:

  • Structure a plan using the RACE Planning framework
  • Create a digital SWOT using RACE​
  • Assess audience customer journeys

The RACE Growth Process is a tried-and-tested methodology with tools, templates and training to support the growth of your financial services organization. Start today.

Is your Financial Services business competing online?

With so much competition, you need to stand out. Use the RACE Growth Process to win more customers

Get started now
Learning Paths for marketing teams

Internal processes in bank marketing

How long does it take to open a bank account? Research shows there is a great discrepancy in this process for banks.

Look at the difference between the 10+ days for an account to be active from existing banks in comparison to the 2-3 days for an account to be active from challenger banks like Monzo, Starling and Metro.

Bank marketing stats account experienceKudos is due to the traditional banks like Barclays and Lloyds who have revised their back office process using STP (straight-through processing) so that they offer a 2-day turnaround process.

Slow internal processes and system management in the financial services industry can cause barriers to improving customer experience. Our Digital Capability Maturity grader, below, highlights the digital steps involved whilst you develop your CX marketing to fully optimized.Digital Capability Maturity Review

Our bespoke digital capability maturity grader, which can be found in the situational analysis dashboard in our Digital Transformation Learning Path for Business Pro Members, is designed to support financial services and other similar sectors in transforming their business to offer customers true value online.

The Digital Transformation Learning Path has tools and training designed to support you in tackling barriers through developing and implementing digital strategies to achieve your CX and wider business goals. Recommended modules include:

  • Digital strategy success factors
  • Competitor benchmarking with RACE
  • Digital capability maturity grader

The RACE Growth Process is a tried-and-tested methodology with tools, templates and training to support the growth of your financial services organization. Start today.

Is your Financial Services business competing online?

With so much competition, you need to stand out. Use the RACE Growth Process to win more customers

Get started now
Learning Paths for marketing teams
Author's avatar

By Dave Chaffey

Digital strategist Dr Dave Chaffey is co-founder and Content Director of online marketing training platform and publisher Smart Insights. Dave is editor of the 100+ templates, ebooks and courses in the digital marketing resource library created by our team of 25+ digital marketing experts. Our resources are used by our Premium members in more than 100 countries to Plan, Manage and Optimize their digital marketing. Free members can access our free sample templates here. Dave is a keynote speaker, trainer and consultant who is author of 5 bestselling books on digital marketing including Digital Marketing Excellence and Digital Marketing: Strategy, Implementation and Practice. My personal site, DaveChaffey.com, lists my latest Digital marketing and E-commerce books and support materials including a digital marketing glossary. In 2004 he was recognised by the Chartered Institute of Marketing as one of 50 marketing ‘gurus’ worldwide who have helped shape the future of marketing. Please connect on LinkedIn to receive updates or ask me a question.

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