Harnessing Data Effectively to Transform Bank Marketing
By Karen Kroll
In the fast-paced world of banking, where competition is fierce and attention spans are short, effective marketing is essential to success. To truly stand out, banks must leverage data effectively, marrying robust analytics with creative strategies. Data isn't just a collection of numbers; it's the lifeblood of a bank’s marketing efforts, helping to build targeted campaigns that align with the institution’s goals.
The Data Dilemma in Banking
Navigating the data landscape can be challenging, especially with the multitude of sources banks pull from—ranging from transaction systems to social media analytics. Often, data becomes siloed within different systems, leading to inaccuracies that can skew insights. Take, for example, the common oversight where a single individual, such as Diego Flores, is recognized differently across several databases (as an individual account holder and as a business account owner). This lack of cohesion can make harnessing data for effective marketing strategy seem daunting.
The good news? Bank marketing professionals can conquer these challenges and transform data into a powerful competitive advantage.
Aligning Strategies for Success
The first step to leveraging data successfully is to ensure that marketing strategies are in lockstep with the overall objectives of the bank. As Amelia Chen, head of marketing at Array.com, emphasizes, if a bank’s goal is to increase revenue, all marketing initiatives—including paid ads—must reflect that aim. This alignment simplifies the identification of relevant data points, allowing marketers to focus on what truly matters.
In the case of Penn Community Bank, all major marketing initiatives are directly tied to the bank’s strategic objectives, reinforcing the message that marketing is a key player at the strategic planning table. Bernard Tynes, EVP and chief consumer banking officer, attests, "When marketing is integrated into the bank’s strategy, it enhances our collective ability to advance organizational goals."
Setting Quantifiable Goals
To truly thrive, marketers must establish clearly defined targets. According to Amanda Swanson, senior director at Cornerstone Advisors, this involves collaboration with business line owners to set quantifiable outcomes that foster growth. Understanding which specific tactics—like email outreach or social media campaigns—fuel success allows for more effective measurement and strategy adjustment.
At Evolve Bank & Trust, SVP Eric Helvie emphasizes the value of regular communication with other departments. By engaging with division leaders and front-line employees, his team stays grounded in data analysis, ensuring that marketing initiatives are aligned with overall goals and can pivot based on feedback and emerging opportunities.
The Importance of Data Verification
When managing data from an array of platforms like social media and online analytics, it’s crucial to maintain a critical eye. Helvie advocates for skepticism, urging marketers to look beyond the surface of seemingly favorable data. A spike in website traffic, for instance, doesn’t inherently translate to new business; it might merely reflect a fleeting moment of social media excitement. By filtering through the noise, marketers can uncover the true narratives behind their data.
Furthermore, going beyond basic demographic data by incorporating contextual insights—such as professional background or impending life events—can tailor marketing content effectively. For instance, anticipating an uptick in home purchases in the spring allows for timely social media campaigns focused on home financing options.
Dispelling the Myth of the "Magic Wand"
A prevalent misconception in bank marketing is the quest for a singular, all-encompassing data source—the elusive "magic wand." Kyall Mai, SVP of Esquire Bank, notes that while acquiring quality data from reputable firms like Dun & Bradstreet is helpful, true insights often demand further enrichment and a more granular approach.
Esquire Bank utilizes a combination of first-party data and platforms such as LinkedIn to identify key contacts within potential client firms, reinforcing the strategic importance of prioritizing data sources based on their validity and relevance.
Crafting Clear Communication
Even with abundant data, clear communication of that information is paramount. As Chen points out, marketing materials should tell a compelling story, easily interpreted by audiences that may not be data-savvy. Every marketing piece, from presentations to social media graphics, should be designed to grab attention within seconds—because if it’s not visually appealing, it risks losing the audience before the message can even be made.
With an abundance of customer data at their disposal—perhaps second only to healthcare providers—banks have the potential to craft hyper-targeted campaigns. Tynes champions a balanced approach in utilizing various types of data—from transactional to behavioral—enabling campaigns that resonate more deeply with customers.
Embracing Continuous Improvement
For successful marketing campaigns, defining clear metrics and objectives is crucial for measuring return on investment. Yet, Tynes warns against relying solely on quantitative measures. Engaging stakeholders in dialogue about what success looks like for specific campaigns solidifies alignment with broader organizational goals.
As bankers like Tynes advocate, blending the art of marketing with the science of analytics can elevate a bank’s strategies to new heights. By interweaving creativity with data-driven insights, banks can not only optimize campaigns but also forge authentic connections with their audiences.
In conclusion, embracing a data-centric approach may be challenging—but with the right strategies, collaboration, and a commitment to continuous improvement, banks can unlock the true potential of their marketing efforts.
Karen Kroll is a frequent contributor to the ABA Banking Journal.
