In every industry, today’s consumers expect a digital experience. It’s no stretch of the imagination to see why – businesses in spaces like retail, travel and hospitality craft in-depth digital interactions for their customers, encompassing interactive elements like personalized video and multiple engagement channels throughout every consumer’s journey. However, according to Forrester Research, 74 percent of business executives claim they have a digital strategy, but only 15 percent believe they can execute on those strategies.
Leveraging video elements can specifically help banks acquire prospective customers, improve efficiency and display brand transparency.
Implementing digital banking strategies gives financial services organizations the chance to improve customer education, build trust among audiences, generate further reach and proactively deliver next-best actions for customers at every stage. Leveraging video elements can specifically help banks acquire prospective customers, improve efficiency and display brand transparency. To seize these opportunities, many financial organizations simply need to take the plunge into the digital video landscape. According to the Forrester Research report, Q&A: Why Online Video Matters for Digital Financial Services, here are four ways to get started.
1. Use videos to improve efficiency of customer acquisition and service.
Customers need education, explanation, and persuasion, when it comes to purchasing financial products, which is often at the burden of the bank’s frontline team. Digital video can lift this challenge of customer education, and when video is personalized and puts the customers at the center of the story, it educates and explains complex financial products to customers in a human-assisted way.
When video is personalized and puts the customers at the center of the story, it educates and explains complex financial products to customers in a human-assisted way.
Think of a consumer in the market for a new credit card. She might visit a bank’s website and start a credit card application, but then get disheartened by the process and amount of information required. The bank can proactively combat confusion (and abandoned applications) by implementing videos at each stage of the application process to walk her through the required fields and address frequently asked questions. If she abandons the process before submitting the card application, the bank can respond with a video ad sharing more details about the card in question or a retargeted email video a pre-approval offer that helps win the customer back. The bank can even use the data provided in the form to make recommendations on which card is the best fit, thereby improving the customer’s experience with company.
2. Add a well-placed video to a pivotal point in the customer’s journey.
When a recently converted customer starts engaging with her new bank, a personalized introduction video can greet her by name, highlight details about her retirement fund or credit card so she fully understands the product’s value, and deliver a suggested next-best action to drive digital-first behaviors, such as downloading the mobile app or enrolling in an online account.
Implementing such digital banking strategies reinforce the use of digital tools and channels as the primary approach for future interactions, while also recommending changes that lift the value of each customer and improve the customer experience. (See how Citibank welcomes new credit card holders with a personalized video welcome experience.)
3. Increase brand transparency with a digital experience.
Financial institutions face pressure to strengthen brand-customer relationships and inspire loyalty among consumers, and transparency is a key ingredient to driving successful loyalty. However, consumer trust in financial services organizations is historically low. Retail banks, card issuers and investment firms can combat this stereotype with elements like short videos highlighting the major terms and conditions of contracts for new customer applications – translating the fine print to show customers the brand has nothing to hide, while better protecting both parties in the process.
Taken a step further, when such videos are dynamic and individualized to the customer, only the most relevant information is provided. This personalized experience solidifies that the customer made a good choice, strengthening the relationship at a pivotal point. (View how T. Rowe Price uses personalized videos to educate 529 colleges savings account holders with projected estimated savings based on the beneficiary’s current age.)
This personalized experience solidifies that the customer made a good choice, strengthening the relationship at a pivotal point.
4. Improve social engagement with videos.
Social networks receive high amounts of online traffic, making them valuable channels for marketers in every space. Launching a social campaign can propel financial institutions into this realm. For example, TD Bank created a video series displaying its appreciation for customers. After sharing them on social media with the hashtag #TDThanksYou, the videos garnered more than 4 million views in one week. Social channels such as Facebook are the next frontier for personalized videos that put the viewer at the center of their own story.
McKinsey reports that by 2019, 95 percent of banking transactions will take place through digital channels. A well-crafted digital experience can make a difference throughout a customer’s journey, and placing videos in strategic locations helps financial services organizations improve customer acquisition, brand transparency, loyalty and engagement. Retail banks, investment firms and other financial institutions can benefit from stepping outside of their comfort zones into the digital era – and making sure to always keep customer-focused storytelling front and center.
Unfortunately, we are no longer distributing this report reprint, but if you’re curious to learn more head over to Forrester to get the report for yourself!