As the consumer revolution in retail banking continues, the whole financial services vertical has seen dramatic shifts towards electronic interactions across their consumer and business-to-business operations. A new study from financial services innovation event Future Digital Finance and partner marketing solution provider Performance Horizon takes a look at the wider variety of marketing channels firms have begun to leverage, especially ones with clear measurement methodologies that contribute towards revenues.
“Financial services companies can no longer simply promote their products through digital marketing channels like organic and paid search as well as email and social media,” said Christopher Rand, a financial analyst at WBR Digital.
The survey results show the extent to which financial services companies are using various different channels and highlights performance-oriented partner and affiliate marketing as part of the marketing mix. Companies are increasing investments in performance-based partner marketing to drive customer acquisition and customer retention, as well as mobile apps and mobile web.
“We’ve found that leading financial services companies are leveraging performance-based partner and affiliate marketing as a successful part of their marketing mix,” said Erik Mikisch, VP of marketing at Performance Horizon, in the release. “They’re increasing customer acquisition and retention, improving business decision making, and reducing risk in ways that standard digital marketing strategies haven’t been able to deliver.”
Key statistics from the survey include:
- Performance marketing, including affiliate marketing, primarily drives customer retention for 21% of financial services companies.
- Almost a third of companies spend at least 20% of their overall media budget on performance-oriented programs, while 21% of companies spend at least 40% of their overall media budget on performance oriented programs.
- Finance companies are looking to grow performance-based marketing programs as 77% of companies prefer to pay new partners based on performance.
- 93% of companies expect mobile website sales will increase, and 92% expect mobile app sales will increase in 2017.
- 86% of companies agree that data and insights from their existing partner marketing programs enable them to make better business decisions.
According to the report, financial services companies agree almost unanimously that they prefer performance-based marketing across more of their channels. Given the economic advantages of sharing risks with a marketing partner, companies plan to expand their existing performance-based partner programs as well as expand it across their existing marketing partners.
The results analyzed in this report were gathered from responses to a survey delivered to global retail executives who are members of the Future Digital Finance database.