Trust and brand are foundational for effective marketing and sales. But escalating marketing spending with no meaningful results leads to frustrated customers and wasted potential. By aligning strategies with care, we can maximise customer satisfaction and acquisition while making every marketing dollar count.
This emphasis on strategy alignment empowers us to shape the future of marketing in banks. Banks are increasingly investing in corporate branding, celebrity endorsements and targeted marketing for segments like startups and MSMEs to drive digital adoption. The ability to execute swift, need-based marketing campaigns is crucial. For banks focused on deepening customer engagement and loyalty, embedding marketing at the core of their transformation strategy is imperative.
As a result, some banks have increased marketing spend to 30-40% y-o-y. However, organisations are struggling to get the desired RoI. Convergence of traditional (TV ads, etc) and digital marketing (online ads, etc) platforms is critical to improving marketing RoI. Linking brand and marketing efforts to enterprise value - driven by revenue growth, customer loyalty in the short-to-medium term, and brand equity over the long term - is essential.
The risk of falling behind has never been more significant as the digital age redefines marketing and branding. But this shift also presents a golden opportunity by putting tech and data at the core. Digital marketing has enabled personalised and impactful campaigns, offering customised products directly to customers.
Digital marketing has significantly picked up, with an overall share for leading Indian banks rising from 10% in 2015 to 25% today. BFSI is now the fourth-biggest sector in terms of digital impression. According to Deloitte's 2015 consumer review, 'Made-to-order: The rise of mass personalisation', nearly 3 in 4 consumers are more likely to purchase from brands that deliver personalised experiences, and spend 37% more with those brands. Also, there has been an 80% increase in cross-sales with 35-40% revenue life through additional spending.
Understanding the customer mindset is crucial. Savvy and impatient consumers demand instant, personalised responses, and expect gratification at the touch of a button. They seek tailored solutions, making it essential to treat each customer as a 'segment of one'. Businesses can earn trust and forge stronger, more enduring relationships by ensuring a frictionless customer journey.
Eye/ear on the customer A deeper understanding of customer needs and spending habits would help plan targeted marketing campaigns tailored to their unique needs. This information will also help organisations allocate resources to platforms promising maximum returns on marketing spend and meaningful impact on customer experiences.
Tech-enabler AI is a powerful tool for analysing customer data, uncovering behaviour patterns and creating detailed customer profiles. This enables organisations to implement 'segment of one' strategies and leverage AI-driven platforms to enhance marketing campaign effectiveness.
Data, the secret sauce Deciphering previous purchases, website visits and social media interactions can give valuable insights into consumers' buying behaviour. These marketing analytics enable businesses to drive targeted campaigns by sending personalised offers and ads more likely to be on time and aligned with customers' needs, catching consumers' interest and building their trust. Brands plan to increase their spending on personalisation by an average of 29% in 2024. However, many brands still struggle to balance their personalisation strategies and tactics.
Measure RoI regularly Without continuous measurement of RoI, marketing strategies risk inefficiency and suboptimal outcomes. Dynamic tracking of financial and brand goals and the ability to adjust strategy with minimal financial impact is essential for driving meaningful business results. Tools, like automated media audits and marketing mix modelling, enhance planning efficiency and allow for recalibration of campaigns to maximise RoI.
The digital age has transformed the marketing landscape, elevating trust, brand and customer service to the forefront of effective strategies. Client-centric marketing can significantly enhance brand perception, profitability and customer experience, underscoring the need for marketing leadership to embrace accountability through rigorous RoI monitoring, cost-efficiency driven by data and tech, and effectiveness in achieving strategic goals.
Fostering an RoI mindset across the marketing life cycle, from strategic planning to campaign execution and RoI measurement, is essential. Optimising marketing spend yields superior returns and creates a competitive advantage, making it a critical area for investment. These actions aim to delight customers while driving business growth, enhancing brand value and optimising costs, ultimately creating a significant cost and revenue differential.
Shetty is CEO, Deloitte India, andPuri is former CEO, HDFC Bank
This emphasis on strategy alignment empowers us to shape the future of marketing in banks. Banks are increasingly investing in corporate branding, celebrity endorsements and targeted marketing for segments like startups and MSMEs to drive digital adoption. The ability to execute swift, need-based marketing campaigns is crucial. For banks focused on deepening customer engagement and loyalty, embedding marketing at the core of their transformation strategy is imperative.
As a result, some banks have increased marketing spend to 30-40% y-o-y. However, organisations are struggling to get the desired RoI. Convergence of traditional (TV ads, etc) and digital marketing (online ads, etc) platforms is critical to improving marketing RoI. Linking brand and marketing efforts to enterprise value - driven by revenue growth, customer loyalty in the short-to-medium term, and brand equity over the long term - is essential.
The risk of falling behind has never been more significant as the digital age redefines marketing and branding. But this shift also presents a golden opportunity by putting tech and data at the core. Digital marketing has enabled personalised and impactful campaigns, offering customised products directly to customers.
Digital marketing has significantly picked up, with an overall share for leading Indian banks rising from 10% in 2015 to 25% today. BFSI is now the fourth-biggest sector in terms of digital impression. According to Deloitte's 2015 consumer review, 'Made-to-order: The rise of mass personalisation', nearly 3 in 4 consumers are more likely to purchase from brands that deliver personalised experiences, and spend 37% more with those brands. Also, there has been an 80% increase in cross-sales with 35-40% revenue life through additional spending.
Understanding the customer mindset is crucial. Savvy and impatient consumers demand instant, personalised responses, and expect gratification at the touch of a button. They seek tailored solutions, making it essential to treat each customer as a 'segment of one'. Businesses can earn trust and forge stronger, more enduring relationships by ensuring a frictionless customer journey.
Eye/ear on the customer A deeper understanding of customer needs and spending habits would help plan targeted marketing campaigns tailored to their unique needs. This information will also help organisations allocate resources to platforms promising maximum returns on marketing spend and meaningful impact on customer experiences.
Tech-enabler AI is a powerful tool for analysing customer data, uncovering behaviour patterns and creating detailed customer profiles. This enables organisations to implement 'segment of one' strategies and leverage AI-driven platforms to enhance marketing campaign effectiveness.
Data, the secret sauce Deciphering previous purchases, website visits and social media interactions can give valuable insights into consumers' buying behaviour. These marketing analytics enable businesses to drive targeted campaigns by sending personalised offers and ads more likely to be on time and aligned with customers' needs, catching consumers' interest and building their trust. Brands plan to increase their spending on personalisation by an average of 29% in 2024. However, many brands still struggle to balance their personalisation strategies and tactics.
Measure RoI regularly Without continuous measurement of RoI, marketing strategies risk inefficiency and suboptimal outcomes. Dynamic tracking of financial and brand goals and the ability to adjust strategy with minimal financial impact is essential for driving meaningful business results. Tools, like automated media audits and marketing mix modelling, enhance planning efficiency and allow for recalibration of campaigns to maximise RoI.
The digital age has transformed the marketing landscape, elevating trust, brand and customer service to the forefront of effective strategies. Client-centric marketing can significantly enhance brand perception, profitability and customer experience, underscoring the need for marketing leadership to embrace accountability through rigorous RoI monitoring, cost-efficiency driven by data and tech, and effectiveness in achieving strategic goals.
Fostering an RoI mindset across the marketing life cycle, from strategic planning to campaign execution and RoI measurement, is essential. Optimising marketing spend yields superior returns and creates a competitive advantage, making it a critical area for investment. These actions aim to delight customers while driving business growth, enhancing brand value and optimising costs, ultimately creating a significant cost and revenue differential.
Shetty is CEO, Deloitte India, andPuri is former CEO, HDFC Bank
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
