Social meets financial
How customer conversations drive acquisition, retention, and innovation
State of the union for financial institutions
Product innovation in the finance industry is elusive. Financial services have become commoditized, each with the same features and functions. Among the few key differentiators are rates and fees – causing a price war that’s driving down what firms can charge due to competition and regulatory pressure.
Meanwhile, the latest financial crises and very public cases of corporate malfeasance give rise to a crisis in consumer trust when it comes to financial institutions. Marketing and advertising falls on increasingly deaf ears; firms have lost the right to drive the conversation.
Due to these factors, client acquisition costs are at an all-time high, and it can take years before a financial service provider is “in the black” after acquiring a new client. One popular strategy among institutions in combatting this cost is to dramatically increase their product portfolio to capture a bigger share of their customers’ wallets and increase lifetime value; insurer State Farm, for example, has added savings and checking accounts to its portfolio.
Financial service providers recognize a chance to reconnect with customers and regain some of that lost trust through the latest social and technology tools. What technologies (and providers) are here to stay, and which are passing fads? Which can have a measurable impact on the business? And which can be managed within compliance standards of the highly-regulated industry?