How to Engage and Build Relationships with Hispanic Customers
Juliana Gomez – Director, Strategy & Insights, Univision Communications Inc.
The Hispanic marketplace represents a considerable opportunity for the financial services industry. Relationships are critical to gaining Hispanic consumers. However, building these relationships requires an understanding of the Hispanic consumer’s mindset in terms of financial goals and planning. Brand familiarity, information resources and the role of language are important considerations when engaging this growing market.
- Spanish dominant (use of Spanish only/mostly) consumers are extremely interested in financial services. They feel that financial institutions have not targeted them. They are very receptive to financial service messages.
- Hispanics are more loyal to their financial services companies. They stick with the company they have a personal relationship with.
- Both Hispanics and non-Hispanics go to friends and families first for financial advice and recommendations.
Chase has increased Hispanic users by 80% as a result of the bank’s high dollar investment in Hispanic ads.
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Measure Consumers: Improve Bank Marketing Strategies with Location Analytics
Valentina Marastoni-Bieser – VP, Marketing, Cuebiq
Jon Cheris – VP of Business Intelligence, Sterling Bank
Carmel La Sala – Director, Retail Bank and Mortgage Decision Management, Citibank
Among the benefits of location analytics in the banking industry is the potential to deliver more accurately targeted and personalized communications based on knowledge of the consumers and their behaviors. Research commissioned by Cuebiq recommends that banks need to build better data offense capabilities.
- Customer Segmentation: This is very important, but banks have not implemented it. Banks can see behaviors based on transaction, but location intelligence helps banks better understand customers’ behavior patterns.
- Enhancing Campaign Planning: Location data lets you know what banks your customers went into after a campaign. Which/how many customers were in the market when a financial services campaign ran.
- The physical world still matters in financial services. 80% of accounts are still opened in person, not online.
- Gaining Competitive Intelligence: Location data lets you know whether your customers are going into other banks, and how frequently. This lets you communicate faster for customer retention programs.
- Evaluating branch performance: What branches are people using vs. competitors vs. digital financial instruments? Look for where other consumers “like” your current customers are shopping and locate a branch there.
- Going on the offensive: Knowing what people are buying and where they are shopping is important for credit card divisions. This behavioral information enables 1:1 targeting.
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Get Smarter about Targeting with Data-Based Advertising
Moderator: Marc Rappin – CMO, ARF
Panelist: Mike Rosen – EVP, Advanced Advertising and Platform Sales, NBCUniversal
The available amount of CRM and other third-party data is very rich. As the sophistication of marketer’s data grows, the challenge now is how do you apply this data to decision making about media use? Targeting 25-54 consumers is not truly targeting, it is currency.
- Using 1st party data + 3rd party data provides much more information than what was available from vendors. Financial services organization can now market to “credit revolvers,” while modeled data did not allow this level of specificity.
- Analyzing outcomes is critical. Measurement questions would include: Which TV behaviors led to the conversions for a particular digital campaign? Did this targeted consumer have a higher propensity to go to the bank running the campaign?
- Targeting with better data with the right message in the right environment will result in success.
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The AI Takeover of Financial Services: Are We There Yet?
Nitin Sumangali – Senior Director, Consulting Financial Services, GfK North America
Currently, there is heavy skepticism about AI in banking, but this is not driven by actual experience. People are not good at predicting their future use of technology, and banks and other financial services organizations need to test and to be agile when introducing consumers to AI and other new technologies.
- 60% of consumers are not familiar with robo advisors. 94% have done no research on this technology. High asset investors lead the resistance against using them. Most people would give robo advisors less than 10% of their money.
- Voice-activated tools: few people willing to use them for financial advice.
- The majority of people have not used Chatbots, and state that they do not want to use them. Consumers are concerned about security and feel that their financial transactions are too complex for Chatbots.
- However, consumers are increasingly using technology in banking, and they have a high comfort level with banking technology.
- Strong digital experience is becoming more critical. Consumers consider online banking and mobile apps more important than the human experience. But a bank needs a physical branch in order for consumers to consider it for their primary accounts.
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Journey to Financial Well Being: Delivering a More Seamless Consumer Experience
James Russo – SVP, Client Strategy & Development, Turner Ignite
The path to purchase for financial products is no longer linear, and this journey can be very confusing. Turner Ignite’s new study, The Consumer Journey to Financial Wellbeing, identifies the insights needed in order to deliver a more seamless journey for consumers. Financial institutions need to move away from transactional relationships with customers. Instead, they need to facilitate a more seamless consumer journey. This journey will include:
- Consolidating the brand reference early in the consumer’s experience.
- Optimizing the product experience.
- Helping consumers confirm that they have made the right decision.
- Encouraging consumers to share their positive experiences
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Does Brand Equity Matter to Financial Services Brands?
Anne Rivers – Managing Director, The BAV Group, a Young & Rubicam Company
What happens when Amazon Pay, Venmo, PayPal, Amazon lending become the competitors of banks? Only differentiation can keep consumers in the bank. Companies that have an emotional connection with the customer have a strong position. Improving brand equity is the best way to drive consideration, preference, usage and loyalty.
- In terms of financial service, brands show up in the eroded quadrant. Banks are viewed as utilities (all the same).
- Brand elements drive firm value for financial brands. Helps build the brand.
- Brand differentiation drives consumer through the funnel. Know-consider-use-loyal journey.
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Hot Topics and Latest Trends Financial Marketers Need to Know
Moderator: Matt Prohaska – CEO & Principal, Prohaska Consulting
Elyse Southwell – VP, Global Digital Strategy & Operations; Host of Nasdaq Disruptors, Nasdaq
Daniel Hopkins – SVP, Bank of America
Andy L. Fisher – Chief Analytics Officer, Merkle
This panel discussion delved into the challenges of data wrangling for data attribution and preparing for GDPR regulations.
Q: How does attribution models impact your institutions?
· Daniel-developing attribution models for two years. Lots of infrastructure is needed, wrangling data, what has that customer seen? Modeling aspect is not that hard. Collecting data and making connections is harder.
Q: Most companies are stuck in the last touch attribution mode. Does Merkle have a POV?
· Andy-Merkle builds models for clients who have a range of sophistication in dealing with attribution modes. There are a wide variety of approaches. Data wrangling is the hardest part of the modeling. Walled gardens are a challenge.
· Elyse-Multi-touch attribution is done by Nasdaq. Looking to break down the silos in the individual businesses.
Q: What is the challenge of stitching together identities from digital to TV and back?
· Andy-Set top box data can lead to better attribution, but this data is not perfect. The challenge is that many publishers are building models, but no one is building cross-publishers models. This changes the way publishers, advertisers, and agencies interact. Integrating data is hard to do.
· Daniel-Addressable TV, tying this data to other media, other channels is difficult.
Q: On GDPR. Opt-in permission is needed for targeting. There is a major financial cost for violating these regulations.
· Daniel-this issue is concerning.
· Elyse-has a team of senior people examining issue. There are many black boxes out there.
· Andy- Merkle has spent a lot of time and money to be GDPR compliant. Some of the regulations conflict with U.S. laws. Another challenge is not knowing how different European countries will interpret these regulations.
· Nasdq and BofA- are in the data audit stages.
Presentation: No deck
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