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.
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.
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.
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.
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.
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.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.
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."