The market for fintech apps is growing rapidly, with nearly 90% of Americans using some form of fintech app to manage their finances. Fintech apps have become more popular than video streaming subscriptions and social media platforms, indicating the tremendous growth potential in this industry. However, as the market expands, competition for acquiring and retaining customers becomes more intense. In this blog post, we will explore the time-tested fintech marketing strategies that businesses can adopt in 2023 and beyond. These strategies will not only inspire you but also provide practical tips to execute them effectively.
Fintech Marketing Challenges: Customer acquisition and retention have been major concerns for fintech marketers. In 2020 alone, worldwide fintech app marketers invested $3 billion in new customer acquisition. However, many finance apps experienced high uninstall rates, with customers switching to competitors as soon as better deals or offers were available. This resulted in significant losses for finance companies. Overcoming these challenges requires implementing effective fintech marketing tactics that reduce customer acquisition costs and increase the customer lifetime value (CLV).
Benefits of Having a Fintech Marketing Strategy: With a growing number of smartphone users worldwide, there are vast marketing opportunities in the fintech sector. Fintech marketing allows businesses to reach new audiences, educate consumers about financial management, build trust in technology, and explore valuable data insights. By customizing content, products, and services based on buyer needs and expectations, businesses can tap into the immense potential of the fintech market.
12 Best Fintech Marketing Strategies:
- Don’t Market, Educate: Financial literacy is crucial, yet only a small percentage of millennials perceive themselves as financially literate. To attract and engage consumers, fintech marketing strategies should focus on educating users about various financial aspects. Bite-sized educational videos shared on platforms like YouTube, TikTok, and Reels can help users better understand personal finance. Creating evergreen content, such as informative blog articles, can establish a brand’s authority in providing financial advice. Furthermore, ensuring a mobile-friendly website experience is essential, given the significant amount of time consumers spend on their mobile devices.
- If You Support a Cause, Tell Them: Millennials and Gen Zs are more likely to engage with brands that share their values. By aligning with a cause and communicating it to consumers, businesses can establish a connection and gain favor with these generations. Sharing philanthropic initiatives on websites and showcasing how customers’ contributions make a positive impact on society or the environment can further enhance brand loyalty.
- Explore Opportunities with Existing Customers: Although fintech app usage has grown considerably, there is still untapped potential. Businesses can market and grow their platforms by notifying customers about features they may not be aware of and cross-selling or upselling relevant offerings. Incentivizing customers through rewards or discounts can also encourage further engagement. Tracking the most-used features of a fintech app can provide insights for building targeted propositions.
- Explore the Untapped Market: Developing markets have seen a higher average number of fintech app downloads compared to developed markets. This indicates emerging opportunities in the informal and unbanked sectors. Fintech companies can target underserved markets by tailoring their products and services to meet the specific needs of these customers. For example, digital wallet services like MOVii in Colombia are disbursing government funds and enabling contactless payments for everyday transactions.
- Be Empathetic: Consumer complaints are not uncommon in the fintech industry, and addressing them promptly and empathetically is crucial for maintaining customer satisfaction. By aligning social media teams with customer support teams, businesses can ensure that concerns raised on social platforms are channeled and resolved effectively. Preparing response templates and guidelines for addressing common issues can also streamline the customer support process.
- Build Trust and Security: As financial transactions increasingly shift to digital platforms, security and trust are paramount. Fintech companies should highlight their security certifications, compliance measures, and partnerships with trusted financial institutions to assure customers of their data protection and privacy. Simplifying terms and conditions and displaying trust signals, such as user testimonials and privacy information, can further build trust among users.
- Promote Unique Selling Propositions (USPs): To stand out in a crowded market, fintech companies must emphasize the advantages they offer over traditional banks. These advantages may include faster and more convenient transactions, lower fees, personalized services, and advanced financial management tools. Highlighting these USPs through targeted marketing campaigns can attract customers who are dissatisfied with traditional banking services.
- Incentivize Customer Acquisition: To drive organic growth, businesses can leverage incentives such as cash backs, referral bonuses, and milestone rewards. By providing tangible benefits to users who invite others to join or reach certain usage milestones, fintech companies can motivate existing customers to become brand advocates and attract new customers.
- Collaborate with Popular Brands: Partnering with popular brands to offer customer discounts or exclusive offers can be a win-win strategy. Customers benefit from the added value, while fintech companies can tap into the existing customer base of the partner brand. For example, collaborating with a ride-sharing service to offer discounted fares to loyal fintech customers can create a mutually beneficial partnership.
Conclusion:
In the dynamic fintech landscape of 2023 and beyond, effective marketing strategies are vital for acquiring and retaining customers. By focusing on education, supporting causes, leveraging existing customer relationships, targeting untapped markets, emphasizing trust and security, promoting unique selling propositions, incentivizing customer acquisition, and collaborating with popular brands, fintech companies can stay ahead of the competition and build lasting relationships with their customers. Implementing these strategies, while continuously learning and adapting, will drive success in the ever-evolving fintech industry.
In summary, the fintech industry is growing at an unprecedented rate, and businesses must adopt effective marketing strategies to acquire and retain customers. This blog post discussed twelve strategies, including educating users, supporting causes, maximizing opportunities with existing customers, targeting underserved markets, building trust and security, promoting unique selling propositions, incentivizing customer acquisition, and collaborating with popular brands. By implementing these strategies in 2023 and beyond, fintech companies can thrive in a highly competitive market and foster long-term customer loyalty.
