The Financial Brand Insights - Spring 2022

edition of the Connected Shoppers report, we saw that in 2021 three types of digital channels grew transaction share by nearly 40%: brand websites and apps, retailer websites and apps, and online marketplaces. Emerging channels’ share of transactions increased more than 20%. In 2023 it’s expected that physical stores will regain a bit of share at the expense of some digital channels, but delivery apps and others will hold onto their gains or even grow (figure 1). A surge in digital transactions brings new competitive threats. 70% of people agree that loyalty is more difficult to maintain than ever. In addition to changes to physical locations, the stopgap measures to keep in-person associates working amid temporary store closures are here to stay. Fewer than half of in-person associates use a mobile device during their working day even now.

The role of technology More executives want mobile technology in the hands of employees — up to 74% by 2024, an increase of 54% since 2021.

Why Financial Marketers Should Focus on Customer Loyalty in 2022

Going forward, executives want to empower associates with the technology they need. They project that 74% of associates will have a mobile device in 2024, an increase of 54% over 2021. That

brings a very clear strategy for loyalty. Recreating the In-Person

Experience in a Digital World We know that financial institutions are rapidly going digital because consumers expect them to be where they are. Shopping on Instagram, chatting on WhatsApp, browsing product reviews on Trustpilot. Bank customers and credit union members want to have excellent experiences on every channel, at any moment. We are in the era of a new customer-brand relationship. And marketing leaders are often the ones driving this inside-out transformation to meet the imperatives of both business growth and an excellent experience across all channels. Whilst technological agility becomes more essential, the true North Star is winning consumers’ trust. You build it over time by listening to needs and wants. And then responding with relevancy every time. This is where the line has blurred on digital channels between friends and brands. Consumers expect brands to talk to them in the same authentic, human way as friends do. These interactions done right help grow stronger relationships, and foster loyalty. For example, our research shows that in 2020 the amount of social media referrals to ecommerce websites doubled quarter over quarter. The number of orders from this channel doubled too, and this trend has continued.

Transaction trends: digital versus physical Figure 1

Share of total transactions

2019

57%

12% 12%

Physical store

Brand’s website or app Online marketplaces Retailer’s website or app Other digital channels Delivery app

11%

5%

• Social media • Messaging apps • Voice assistants • Gaming consoles • Live-streaming video

3% 2021

By Lincoln Hull Director of Product Marketing at Salesforce

Nathan Barling Vice President of Product Marketing at Salesforce

42%

17% 17%

Consumers are demanding empathy more than ever. That is what 15,000+ global consumers and business buyers said when surveyed about a new era of customer engagement for the Salesforce “State of the Connected Customer” report. While 66% of customers expect companies to understand their unique needs and expectations, only 32% of executives say they have the full ability to turn data into personalized prices, offers and products in real time across channels and touch points.

Digital services have made the ability to switch financial service providers easier than it ever has been, but they have also created a great opportunity to drive loyalty through personalization. Experiences are just as important as the final offering when driving loyalty. 80% of people agree that the experience a company provides is as important as the product or service it offers. With the pandemic driving more digital adoption, these experiences have been mainly digital. In the fourth

15%

7%

3% 2023

43%

16%

17%

14%

7%

4%

THE FINANCIAL BRAND © January 2022 SOURCE: Salesforce

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THE FINANCIAL BRAND INSIGHTS SPRING 2022

THE FINANCIAL BRAND INSIGHTS SPRING 2022

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