How fintechs are using the power of marketing automation to increase customer engagement and retention

With over 6,000 registered fintech startups, India is undoubtedly a global fintech superpower in the making today. The pace of innovation in fintech (payments, loans, investments, insurance, SaaS, crypto, regulations and neobanking) has kept everyone on their toes. This is evidenced by the RBI’s creation of a separate department for fintech, followed by its recent announcement of the creation of 75 digital banking units.

We have only just begun to see the results of years of hard work (Aadhaar, UPI, IndiaStack, BBPS, DeFi, digital banking, etc.) and the evolution for which the country’s financial systems have grown. . The fintech market size in India is estimated to be poised to grow fivefold (from ~$31 billion in 2021 to $150 billion by 2025).

The war

A logical challenge that would follow such an evolving ecosystem is the war to acquire and retain customers who are spoiled for choice.

Fintechs have realized that focusing on understanding customer needs and delivering unique personalized experiences is key to staying competitive.

They present more value to customers – with offers from brands and partners, price comparison widgets and financial calculators for transparency, a fun user interface and ancillary services such as bill payment, financial information personalized and credit reports.

Innovation in fintech marketing

Top fintechs have implemented automation into their MarTech stack from day one to manage the customer lifecycle as the business scales. These marketers deploy a campaign with varying degrees of personalization in minutes. With automation, they can even predict where a customer might need additional information to move forward. The system activates real-time SMS, Email, Push notification or Whatsapp message. Many fintech apps offer different experiences for different customer segments (high-middle-low income; geolocation in Tier 1, 2, 3 cities; language preference; age and gender, etc.)

Savvy marketers optimize their costs and business goals by sending emails at a specific time when customers are most likely to open them. It almost feels like magic, but having a consistent brand experience at scale is essential, and over time, that builds customer loyalty, which is a game-changer. Typically, gaining a new customer is much more expensive than retaining and activating an existing customer in financial services.

Another trend we’ve seen recently is the use of chatbots and voice bots that are available 24/7 without long queues or fixed customer service hours. Moreover, customers can interact with these bots even on Whatsapp, an experience similar to chatting with a person. These intelligent robots are trained with NLP (Natural Language Processing) to understand even familiar usage and react accordingly.

Easier said than done

Customer experience isn’t just defined by the communication a brand sends or the value it delivers. It is also continuously shaped by the ecosystem.

Many fintechs face the challenge of competitors offering steep discounts or similar tactics. Others face the challenge of a lack of customer trust due to being new to a category that hasn’t changed much in decades. This is where the rubber meets the road.

Staying true to the core value proposition and improving the way its customers are educated becomes key in such situations. It becomes critical to address gaps in service delivery and consistency across all customer touchpoints (call center experience, social media posts, in-app experience, communication, brand campaigns, etc.) .).

Understanding consumer behavior (face-to-face meetings with customers, surveys, analysis of call recordings, etc.) and rapid experimentation (AB test emails, offer constructions, messaging hierarchy, etc.) help marketers design winning offers and content.

Impact of the marketing strategy

Keeping automation at the heart of your marketing strategy from the earliest stages has many benefits.

First, it helps reduce enterprise-wide reliance on human power. Today, Lean teams scale to millions of customers through marketing automation.

Second, automation helps reduce costs on a large scale. Automation helps optimize the sales funnel, critical communications, data reporting, customer journeys, and business processes as the business evolves. It also saves time because usually such automation requires a one-time setup effort and can work 24/7.

Third, it energizes teams with features that otherwise require domain expertise. Brand and marketing teams can test creatives and content to nail their message. They can personalize each customer’s experience based on their behavior and preferences and maximize engagement and retention. Data and business teams can apply models such as Recency Frequency Monetary (RFM), propensity scores, and predictive algorithms to treat different customer segments accordingly.

Finally, automation brings much-needed consistency to a business and reduces human error.

The fintech revolution

Fintechs are the enablers that help innovate products, business models, processes and technologies in the financial category. They influence consumer behavior and, more importantly, customer expectations by delivering better value in various formats. They are proving to be a good test bed for major banks and institutions for digital transformation and a way to fill gaps in current service levels. As a result, the global ecosystem is thriving and increasing access to financial services at an unprecedented rate.



The opinions expressed above are those of the author.