Author, Zahiruddin Ghazali
Without a doubt, banks prefer their customers to be financially stable, in this case, the Gen Y or Millennials, a substantial market size every single industry is after. This generation is going to fuel the nation’s wealth creation through startups and business ventures. Unfortunately, being young and financially insecure, these millennials rely on their credit card to fill up the financial gaps in their quest to conquer their dreams. In some cases, the dream is causing them to be further in debt and financially unstable.
A credit card balance transfer offers an opportunity that benefiting both parties. For financial institutions, it is an avenue to market their product and for the consumers, it provides help in their financial well-being by reducing financial commitment. Moreover, it embarks a lasting bond between customers and their trusted financial service provider.
That said, marketing for this financial product is never a straightforward game as customers always associate financial products to risks. So, how should we go about it?
Today, financial products can be easily replicated which eventually becoming a mere commodity. For consumers, they are no longer ‘human’ in the eyes of the banks. They are being referred to as a number. An account number to be specific.
In such a competitive environment, the only winner that stands out is the one that not only provides a low-cost solution but also engages with their clients and treats them as a fellow human. If your company is in this prosperous position and your tactic is clear, start to flood your marketing strategy with these two angles.
The only shortcoming to this approach is that low margins are required in maintaining fee superiority. If market share drops, profits quickly erode. A more effective approach for long-term success requires a close empathetic needs of the customer.
Remember, a 25-year-old, single system-analyst doesn’t have the same lifestyle, earnings level nor disposable funds as the 55-year-old, married senior manager of a multinational corporation.
The low-cost solution provider in the financial services industry should not be wielding a hammer, and the potential client is a nail to be hammered with a single theme. Pause, take a deep breath and reflect in analysing your present and former customers in identifying their commonalities. Understanding the reason behind who stays and who leaves is essential to building your presence in the personal financial service market.
Conversion of prospects into a customer is essential and ought to occur easily, smoothly and quickly. An overly bureaucratic process can create second thoughts over the decision to commit.
This is the first step in showing customers that they have made the right decision in choosing your brand and services.
Millennials are easily irritated with cumbersome bureaucratic procedures and usually do their “chores” outside office hours. Hence, review your account enrolment processes and communication procedures to ensure they are easily understood and applied when needed, and secure. It may also require communication links through emails and mobile phone texts. In some cases, connections between all stakeholders and devices become vital too.
Therefore, investing in software and apps that promote ease and thrust to your customers must be a priority. Moreover, all electronic links should be protected against hacking or theft, as a single mishap in the security vertical can definitely weaken all of previous efforts and investment to establish a long-term rapport and bring to question your other financial products.
Often, financial firms are focusing too much on getting new prospects while ignoring the needs of customers they already have. According to various studies, converting a prospect to a new customer costs three to fifteen times more compares to retaining and selling your financial product to existing customers. Never let your guard down that the customers you already have are your competitor’s prospects. Reward them with regular improvements in the services offered and let them know about those improvements through regular social media communications.
Time to reinforce your presence is now.
Prof Dr Zahiruddin Ghazali is an Associate Professor at OYAGSB. Follow him on ResearchGate.
