Are you working in the digital channel or marketing team of a bank? Then this post is for you. We will show examples of a powerful feature of Backbase Bank 2.0 Portal: contextual targeting. Contextual targeting is a new approach to cross- and up-sell for banks’ existing customers. Based on clients’ data, banks are able to show more relevant information to their customers on their products. In this way, banks can increase acquisition rate and to help customers to find products that fit their financial needs. As we will show, all of the above can be done with keeping the clients’ information safe.
Targeting client has always been the biggest challenge for marketers, especially in the online era. Loads of online marketing budget is spent in an effort to advertise new products of a bank, whether it is new deposits, loans, investments and etc. The problem is that while the advertising is carried out for all customers as a whole, it matches only a distinct group within bank’s customer base whose financial needs are related to this campaign.
Alternatively, bankers are able to give more personal advice based on the client’s current account. But this requires either a call initiated by the client himself, or a call-center campaign run by the bank to promote the new product – a cumbersome and expensive operation. So, finding the match between the customer and the right product seems to be hard to get.
This challenge was on our mind when we designed Backbase Bank 2.0 Portal. As a company that works hard on integrating data for great user experience, we realized we can re-use data used in the bank portal for better targeting. Moreover, we found out that the relevance of banking ads grows even more in the correct environment, that is, the online banking portal.
To understand how contextual targeting works, take for example these two subgroups:
– Alices: Women in their late 20s, with one child.
– Bobs: Men in their early 20s, probably students.
Contextual targeting enables you to slice your customer base into distinct subgroups and to show each, for example, a unique banner. With easy to use rules setting interface, you can easily enhance your campaign targeting success. For example, you can determine that a mortgage plan product will be presented to all Alices, while Bobs will be advised on a student loan or a new long-term saving account with monthly payments.
How is this done? Besides using the customer profile of the information systems? Bank 2.0 Portal makes it possible to integrate existing information from existing CRM or marketing systems into the targeting rules systems. Business data that was acquired and analyzed over the years can be utilized in the targeting rules. See live demo of our targeting engine in our video:
The beauty of our portal is that guessing becomes redundant: you can precisely measure and monitor the success of your campaigns. With integrated analytics, you can measure the performance and subscription rate of each of the subgroups above. You can see success of banners and engagement rate of specific sub groups:
One of the issues that rises when involving personal data with advertising is the obtrusiveness of using personal information and compromising privacy. First, in Bank 2.0 Portal contextual targeting information is not stored together with the personal information. It’s created separately and does not store personal information of clients. Second, the contextual targeting is not showed personally to a specific user; The rules can apply only to a subgroup of clients who share the same characteristics.
In addition, according to E&Y Global Consumer Banking Survey 2012 E&Y’s Global Consumer Banking Survey 2012, 70% of the users are willing to provide their bank with more information to get better service. This figure is quite surprising, but still obvious when considering that 56% of the clients from the same survey think that their bank can do better in adapting products and service to their own financial needs. Therefore, banks’ customers expect their bank to advise them continuously on the various products the bank has to offer, and don’t mind that the bank looks into their account for that (which was already done by the banker on the phone).
In conclusion, Bank 2.0 Portal contextual targeting is a great tool in the hands of banks’ marketing and sales departments. Using the data already existing in the bank systems you can increase your conversion and acquisition rate by providing relevant product information. The ability to analyze and measure the success of the campaigns can provide even more insights on your clients’ needs. Last but not least, contextual targeting is made completely in the bank’s domain, without sharing the information and without compromising client’s privacy and security.