In addition to the typical challenges that businesses face, fintech companies need to battle a unique one. Considering that a large majority of their demographic is hyper tech-savvy, designing impactful marketing campaigns that walk the walk can get daunting.
In this article, we’ve listed the top 7 challenges that financial companies encounter when adopting digital marketing strategies for their businesses. We will also discuss the long-term solutions to these challenges, lower the acquisition cost for each customer and build a marketing strategy that drives you to success.
Challenge #1: Developing a Brand in a Congested Environment
Southeast Asia’s fintech business is extremely competitive and has expanded rapidly over the last 15 years. According to a new Mordor Intelligence analysis, the fintech sector in the Asia Pacific (APAC) would expand the quickest, with a CAGR of roughly 16% between 2023 and 2028.
One of the most pressing challenges for a business is standing out in a crowded market. Having strong brand awareness is critical and can directly influence the rate and cost of your customer acquisition.
Challenge #2: Your message is unclear
Even if they know who their target audience is, some fintech marketers still struggle with their marketing messaging.
We’ve seen fintech apps that cater to teenagers and young adolescents, but their messaging is crafted to impress only industry experts or management gurus! This is not only a wasted opportunity but an expensive one! Speaking to your audience, no matter how simple and straight-forward it seems, is not always that easy, and fintech companies would agree!
What to do instead
Remember your target audience. Ask yourself if you are writing authentically to them when you write a blog post, social media headline, in-app descriptions, or other content.
Some people find it useful to create avatars that accurately represent their target audience members. For example, you could market your payment processing app to Sarah, a 37-year-old woman who has just opened her grocery store and needs a convenient and affordable way to accept credit card payments from her clients.
When creating marketing content, consider how you can bring value to Sarah. Would it be interesting and useful to her? How can Sarah benefit from our payment processing app? What benefits can she look forward to?
Challenge #3: Building Customer Trust and Loyalty
Building customer trust and loyalty remains a challenge for fintech companies, particularly in the aftermath of the 2007 financial crisis, which undermined consumer confidence in the financial industry.
To solve this obstacle, fintech companies should prioritize offering an excellent user experience on their website and mobile app, streamlining the user journey, ensuring platform stability and dependability, and optimizing the eKYC process.
These characteristics can increase conversion rates, lower customer acquisition costs (CAC), and boost business unit profitability. Furthermore, fintech firms should supply clients with free, helpful, and unbiased material to establish themselves as trusted partners in assisting them in making sound decisions. Fintech firms may enhance client retention and loyalty by creating relationships through content marketing, both of which are critical for long-term success.
Solution:-
To increase consumer trust and loyalty, fintech companies should:
– Provide an excellent customer experience through their website and mobile app.
– Simplify the user journey while ensuring platform stability and dependability.
– Streamline the eKYC procedure to attract clients more efficiently.
– Provide clients with free, informative, and unbiased material to position themselves as valued partners.
Challenge #4: Using the right ROI models to measure impact
Relating customer acquisition costs to true customer lifetime value (LTV) can be a challenge for fintech companies due to the complexity of financial services.
Having set of metrics or KPIs is very important to gauge the ROI of the effort the companies are doing.
Challenge #5: You don’t share your expertise.
Even if you can’t use a lot of technical language, you can still communicate your knowledge and skills. You should demonstrate your knowledge and establish yourself as a reputable source of information.
Assume you’re not publishing material that adds value, teaches your audience, or answers their queries. In that instance, you will not receive much traffic to your website or individuals interested in your product or service.
Think about it. If you need assistance with virtual event planning or brand modification, you should get advice from a subject matter expert. Keep in mind that true specialists understand how to convey what they do in clear, straightforward words.
Challenge #6: Paid marketing does not deliver satisfactory results
While the fintech business is competitive, it is vital to realize that fintech brands compete with conventional financial service providers, including some of the world’s largest banking corporations. To thrive in this battle, fintech startups must demonstrate that they provide a credible alternative to the status quo. To do this, they should concentrate on:
- All items and services are priced transparently and competitively.
- Provides new and distinctive products or services.
- Provides a better user experience than conventional instruments.
- Developing strong customer trust.
- Developing intimate ties with consumers.
- Effective use of technology to enhance operations and the customer experience.
