During the COVID-19 pandemic, consumer behavior dramatically shifted, forcing financial institutions to reevaluate their marketing strategies. Once a powerful incentive, travel rewards took a backseat as consumers prioritized online access to essential financial services. This period highlighted the importance of agility in credit card marketing, helping local banks and credit unions maintain connections with their communities amid rapidly changing needs.
As we move forward, the lessons from that time remain critical. Dynamic marketing plans, driven by data and tailored messaging, are now essential for supporting clients through life-changing events and navigating ongoing economic challenges. Here’s how financial institutions can strengthen customer relationships and evolve their credit card marketing strategies to stay ahead.
Effective messaging and content also support clients through life-changing events. However, marketing plans should be dynamic. Financial institutions can use data to inform and adjust strategies during disruptive times. Here's how to strengthen processes and existing relationships with customers while developing credit card marketing strategy tactics to attract new clients.
What is Credit Card Marketing?
Credit card and financial services marketing target key demographics with relevant content on the right channel. Credit card marketing campaigns may encourage consumers to open a new account, transfer a balance, or take advantage of special offers. Unlike general marketing plans, bank marketing must consider financial risks and regulations, making it critical for institutions to pinpoint and reach the appropriate audience.
Financial marketing professionals can achieve campaign goals by highlighting the right balance of online and in-person products to a segmented audience. Yet, the pandemic upended consumer behavior, requiring marketers to reassess channels and product differentiators.
Credit Card Marketing By the Numbers
The Bureau of Consumer Financial Protection stated, "over 175 million Americans hold at least one credit card." However, "revolving consumer credit fell more than $120 billion (11%) in 2020" and nearly 3% more "between December 2020 and April 2021," according to the Board of Governors of the Federal Reserve System. Several factors affected usage and repayment, including pandemic-related lockdowns and stimulus funds.
Revolving consumer credit began to recover in 2021, but inflation and rising interest rates continue to influence behaviors. Credit card marketing professionals can stay abreast of the latest trends by building strategies on core principles and leveraging technology to connect with current and potential clients.
How to Get Started With Credit Card Marketing
Your plans will include various goals, from attracting new customers to increasing credit card sales. Indeed, understanding fintech trends and the impact on your target audience are one component of credit card marketing strategies. But, the best credit card campaigns speak to individual consumers. This approach helps ensure the message, content, and timing have a significant impact.
Base your marketing strategies for credit cards on these principles:
- Put relevant content on the right channels: Promote credit card sales and financial products by identifying the appropriate platforms, developing content that resonates with the target audience, and selecting the best timing.
- Build flexibility into credit card marketing campaigns: Changing consumer motivations, expectations, and behaviors can make a credit card marketing campaign ineffective. Collect data and generate insights to overcome economic and generational marketing differences.
- Highlight key differentiators: The benefits of financial products vary by generation, income level, and more. Create compelling credit card marketing campaigns by personalizing your approach when discussing key differentiators.
The Key is to Differentiate Your Credit Card Marketing Strategy
According to the
American Banking Association (ABA), "the credit card market is highly competitive." Consumers have many options and are flooded with offers, making it imperative for local finance companies to lean into what makes their financial services and products different., Amid stiff competition and economic uncertainty, institutions should leverage big data and data visualization tools to understand and reach their target audiences.
Digital Marketing Strategies for Credit Cards That Work
Community bank marketing relies heavily on a personal approach, which extends to your online offerings. Customer service, paid ads, and self-service tools are part of digital marketing for banks. In each case, the customer experience is paramount. Consumers want easy-to-use solutions and personalized promotions. Therefore, your credit card marketing strategy and customer acquisition efforts should focus on a cohesive online experience.
Use digital marketing strategies to market credit cards by:
- Developing a social media presence: Globally, there are around 5 billion active social media users, making social media marketing tactics excellent for outreach. Local bank marketing includes using social media for communication, monitoring complaints, and increasing customer engagement.
- Offering self-service options: Consumers want online application and account management tools. These channels add value to your offerings, allowing your clients to simultaneously access information on their cell phones and view timely promotions.
- Supporting multiple communication types: Usually, digital marketing for banks relies on cross-device communication and strategies. Diversifying the online channels used for customer support, which includes live website chat, social media messaging, and text services.
Invest in Seasonal Credit Card Campaigns
Credit card marketing campaigns should meet consumers at the moment, including times of the year when spending spikes. Seasonal promotions are most effective when combined with credit card customer segmentation. This combination can connect your credit union or bank with consumers preparing for upcoming purchases, such as summer vacations, back-to-school, and holidays.
However, in 2020, more than 40% of holiday shoppers reported shopping "earlier than they normally do," according to the
National Retail Federation (NRF). Local banks and credit unions may not reach potential customers in time without behavioral data. Successful credit card marketing strategies help to collect accurate insights, allowing local banks to pivot quickly to meet consumers in the moment.
Leverage Big Data and Automation
Big data in finance helps local banks and credit unions anticipate consumer preferences and market innovative financial products before the market is saturated with offers. But, these capabilities aren't possible without tools that use automation to gather customer analytics. Financial institutions can use
big data solutions to collect information online and offline to develop a complete user profile. From there, automated technologies serve ads to individuals based on their behaviors, such as which devices they use at various times of the day.
Using AI-Enabled Marketing as a Credit Card Marketing Strategy
Artificial intelligence (AI) in the credit card industry helps organizations adapt to the swift pace of change in the digital age. It also allows marketers to assess behavioral differences and recalibrate after COVID-19. Indeed, AI-enabled marketing in finance can use transactional data for card-linked promotions and advertisements.
An AI-based credit card marketing strategy increases conversions by analyzing:
- Time of year
- Age
- Geolocational data
- Gender
- Types of products purchased
- Historical purchase behavior
Segment Your Target Credit Card Customer
Credit card customer segmentation groups clients according to demographic, behavioral, psychographic, and geographic attributes. It uses AI and machine learning (ML) to identify marketable consumer segments. For instance, the ML clustering method looks at a dataset and may find a correlation between different segments humans may miss. Marketers better understand consumer intent and can create personalized credit card marketing strategies and campaigns.
ML and AI-powered tools also help banks and credit unions build (and sustain) relationships and loyalty. These technologies monitor changes affecting your target audience's behavior and enable financial institutions to provide innovative products and services. Visa Consulting & Analytics suggests that "offers that fit and evolve with the customer's lifestyle maximize return on investment."
Personalize Credit Card Campaigns to Reach Consumers Efficiently
Credit card marketing is necessary to stand out in a crowded market of financial products. Your solutions should enhance your existing practices and uncover potential opportunities. Consider how AI capabilities and omnichannel campaigns can transform your credit card marketing strategies by creating hyper-targeted audiences with data match.
Contact Media Now Interactive to learn about financial services marketing and for more information on our unique capabilities.
