The New Keys to the FI Kingdom?
Starbucks uses targeted ads based on consumer proximity to one of its stores. And they report an increase in the likelihood a targeted consumer will enter their store by a factor of 100%.
The coffee giant’s use of location-based advertising is just one example of how comfortable the average consumer has become with their trusted brands using location data for marketing. And, if a consumer is willing to accept that level of interaction from a caffeinated beverage company, why not the institution to which they trust their money?
Because, while people are getting used to location-based targeting, it doesn’t mean they are happy about it. The majority of Americans (91%) feel they don’t have control over how their personal information is collected. Fewer than a quarter (17%) of consumers think tailored advertisements are ethical. Overall, while targeted advertising is largely effective, consumers consistently state that they do not want personalized or targeted services at the expense of their privacy.
Should You Completely Avoid Personalization?
Not necessarily. There are ways to use account holder data for personalization without being creepy. You just have to be careful. For one, only use data that is voluntarily provided. Second, you should only use the data provided in the ways for which they have given you permission.
For instance, if an account holder gives your institution their mobile number to send them a text message about a new or used car loan, you can send them a text about a car loan. But you cannot send them text messages about anything else unless they specifically agree to hear about other offers or communications.
Finally, if your goal is ongoing communications through text, email, or other notifications, you should have extremely easy opt-out methods. There are several ways to make sure opting out is easy, such as:
- Create a messaging options area in your financial institution’s mobile app and digital banking system.
- Ensure there is a simple “STOP” option to unsubscribe to text messages directly.
- Have a client services number available for the digitally challenged to make changes to their messaging options.
Ultimately, it all boils down to being completely transparent. Account holders like being told exactly what they are signing up for, without all of the legalese. They also like being reassured there is an easy way to make it stop should they change their mind. If you can manage both of those, you’re far less likely to make them angry. Because, well, you can’t please everyone.
That Sounds Like a Lot of Work!
You’re right. There are quite a few ways personalization can go terribly wrong if it isn’t built very carefully. Creating a robust system that properly caters to account holders can be both time consuming and costly.
But there are ways to personalize interactions that are far less intrusive and arguably more traditional. Things like making sure your account holders can find convenient branch and ATM locations no matter where they are.
Innovative and interactive locators like the Wave2 locator can help credit unions and banks pull in the data from surcharge-free networks, shared branches, and other services to direct account holders to the most convenient option available. And, if your account holders are regularly looking in areas where your institution doesn’t have coverage, Wave2 can help you identify those gaps between consumer demand and your physical presence with real data that can help you plan your growth.
So, whether you are looking to try your hand at targeted messaging or planning to go a more traditional route, locators are a good, safe, and simple way to start gathering data about where your account holders roam.
Find out how the Wave2 locator can help your financial institution with all of these issues and more!
Jason Green, Co-Founder
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