Bank Marketing Strategy
Despite what many think, CDs aren’t just old-school savings tools only Grandpa uses.
Yes, it is true that CD rates weren’t appealing to the average consumer for a long time. It was a rare sight to find rates nearing 1.5%. However, recent months have seen a dramatic shift. Financial institutions, including banks and credit unions, now offer rates soaring up to 7%. This is a remarkable departure from the usual expectations when committing money for a set duration. Add to this the unpredictability of the stock market, influenced by inflation’s impact on earnings and stock values, and consumers are now seeking a secure place for their funds with an attractive yield.
Regrettably, many consumers only take action when nudged. Our current interest rate landscape presents a golden chance for banks to ramp up their promotional efforts and capture a significant portion of deposits from both existing clients and the broader community within all generations of depositors.
“Deposit institutions do need to be careful, though,” said Tim Davis, digital marketing team lead at BankBound. “Clients almost always want a higher APR on their deposits. But the bank has a responsibility to mind their short and long-term interest expenses, interest rate spread, cost of funds, and the risk of eventual run-off, to name a few. It is important for the marketing team to understand how CDs factor into the organization’s growth strategy, which can shift depending on market conditions.”
Modern CD Marketing in the Digital Age
Banks constantly seek innovative ways to attract and retain customers in today’s digital age. One of the traditional banking products that has seen a resurgence in interest is the Certificate of Deposit (CD). With the right marketing strategies, banks can leverage CDs to increase their customer base and foster loyalty. In this blog, we’ll delve into some of the most effective digital channels for CD marketing strategies and the most up-to-date digital tools for promoting your CDs.
Digital Channels for CD Marketing
Social Media Platforms:
Social media has evolved from mere platforms for connecting with friends and family to powerful marketing tools. Financial institutions now leverage these platforms to promote their products, including Certificates of Deposit (CDs).
- Facebook: With its vast user base, Facebook offers banks the opportunity to run targeted campaigns. By utilizing Facebook’s advanced targeting options, banks can segment their audience based on interests and behaviors, ensuring their CD promotions reach the most relevant audience.
- Instagram: A visually driven platform, Instagram is perfect for showcasing the benefits of CDs through engaging graphics, short videos, and stories. Using hashtags can also help increase the visibility of the bank’s promotions.
- LinkedIn: Primarily a professional network, LinkedIn can be used by banks to target businesses and professionals. By sharing informative content about the advantages of CDs as an investment option, banks can position themselves as thought leaders in the financial sector. “Commercial and municipal clients can be CD customers too,” said Davis. “They may not want to tie up funds for long term, but short-term CDs can be a win-win for banks and clients.”
- Engaging Content: It’s not just about promoting rates. Banks should focus on creating content that educates the audience about the benefits of CDs, how they work, and why they are a safe investment option. This can include infographics, explainer videos, and blog posts.
- Interactive Features: Using polls, quizzes, and interactive stories can engage users and make them more receptive to the bank’s messaging. For instance, a quiz titled “Is a CD Right for You?” can guide potential customers through a series of questions, leading them to a conclusion about whether investing in a CD is a suitable option for them.
- Customer Testimonials: Sharing positive experiences from existing customers can build trust and encourage others to consider CDs as a viable savings tool. Highlighting real-life success stories can resonate with potential customers and drive them to further explore the bank’s offerings.
Learning to harness the power of social media strategy is an excellent digital marketing pursuit.
Because we work extensively with email marketing here at BankBound, we understand that email remains one of the most effective digital marketing channels, especially when it comes to reaching existing customers. With the right strategy, banks can utilize email marketing to promote their CD offerings and drive conversions.
- Personalization: Beyond just addressing the recipient by their first name, banks can personalize content based on the customer’s previous interactions, account type, or financial goals. For instance, an email to a customer who recently opened a savings account might highlight the benefits of diversifying with CDs.
- Segmentation: Not all customers are the same. Banks can tailor their messages to specific groups by segmenting the email list. For example, younger customers might receive content about the basics of CDs and their long-term benefits. At the same time, more seasoned investors might get information on higher-tier CD options with better rates.
- Engaging Content: The email’s content should be informative and engaging. Using clear and concise language, eye-catching visuals, and compelling calls to action can make the difference between an email that’s opened and one sent to the trash.
- Responsive Design: With many customers accessing emails on mobile devices, it’s crucial for the email design to be responsive. This ensures the content is easily readable and navigable regardless of the device used.
- A/B Testing: To maximize the effectiveness of email campaigns, banks should consider A/B testing different elements like subject lines, email copy, or call-to-action buttons. This can provide insights into what resonates most with the audience and drive better results.
- Follow-up Sequences: Instead of sending just one email, banks can design a sequence of follow-up emails. For instance, a follow-up after the initial promotion email might address common questions about CDs or share testimonials from satisfied CD customers.
- Analytics and Feedback: Monitoring open rates, click-through rates, and conversion rates can provide valuable insights into the campaign’s performance. Additionally, seeking recipient feedback can offer direct insights into what customers value and how the bank can improve its future email marketing efforts.
Additional Digital Marketing Tactics for CDs
The world of CD (Certificate of Deposit) marketing is vast, and while many banks rely on tried-and-true methods, many lesser-known strategies are waiting to be tapped. Read on and we’ll uncover some unconventional CD marketing techniques and introduce additional tools to give your bank a competitive edge.
Webinars and Workshops:
In today’s rapidly evolving financial landscape, informed decision-making is crucial for long-term success. Recognizing this, many banks are turning to webinars and workshops as platforms to educate their customers and the broader community. These sessions demystify complex financial topics and position the bank as a trusted knowledge leader.
By hosting educational webinars and in-person workshops, banks can delve deep into the intricacies of financial planning, with a special emphasis on the myriad advantages of Certificates of Deposit (CDs). The following is a list of marketing initiatives to consider when planning a webinar or workshop:
- Expert Speakers: Invite financial experts or seasoned bankers to lead the sessions. Their insights and expertise can add credibility to the information presented. Using outside professionals to speak on a topic can a great way to tap into their connections. Be sure to give speakers a trackable link that they can use to direct would-be attendees to a registration form.
- Interactive Sessions: Instead of just a lecture format, incorporate Q&A sessions, polls, and interactive discussions to keep the audience engaged and address their specific queries. The guests in the room are experienced professionals as well. Engaging the audience can make for interesting market research.
- Tailored Content: While the primary focus might be on CDs, ensure the content covers a broad spectrum of financial planning topics. This holistic approach can attract a wider audience and provide more value.
- Recording and Distribution: Record the webinars and make them available on the bank’s website or social media channels. This ensures that those who couldn’t attend can still benefit from the information and might consider the bank’s CD offerings. Sending a follow-up email can be an effective way to re-engage with attendees who may have a follow-up question about some aspect of the presentation. This is a great way to build a professional trust.
Referral programs are essential for effective marketing. By streamlining referrals via a bank’s website or app, banks leverage the trust of their current customers. Features like tracking and notifications keep customers engaged and aware of benefits, boosting acquisition and retention. In the competitive banking sector, combining referrals with loyalty programs enhances marketing efforts, promoting community and consistent growth.
- Easy Referral Process: Ensure the process for referring friends and family is straightforward. Consider using a simple form on the bank’s website or a shareable link through the mobile app.
- Tiered Bonuses: Instead of a flat bonus rate, consider offering increasing bonuses based on the number of successful referrals. For instance, the bonus could grow for the successful 5th, 10th, or 15th referral.
- Rewards for the Referred: To make the proposition more attractive, offer incentives to the referrer and the referred individual.
- Tracking and Notifications: Allow customers to track their referrals and rewards through digital platforms. Sending notifications for successful referrals and earned bonuses can keep the excitement alive and encourage further referrals.
- By integrating and loyalty programs, banks can foster a sense of community, reward long-term loyalty, and drive acquisition and retention strategies in the competitive banking world.
Popular Tools for CD Marketing
Staying ahead in the dynamic financial marketing world requires leveraging the right tools. For banks aiming to promote their Certificate of Deposit (CD) offerings, many specialized tools are available, each designed to optimize visibility, enhance customer engagement, and drive conversions. From platforms that neatly display CD rates to those offering competitive intelligence, these tools play a pivotal role in shaping a bank’s CD marketing strategy. Let’s delve into some of the most popular tools revolutionizing how banks market their CD products.
- CDValet: This tool allows banks to showcase their CD rates and terms in an organized manner. It also provides analytics to track the performance of various CD products, helping banks refine their offerings based on customer preferences.
- DepositAccounts.com: As one of the largest online communities covering bank deals, DepositAccounts.com offers banks a platform to list their CD rates and attract potential investors. The site’s comparison tool allows customers to compare CD rates from different banks, giving participating banks a competitive edge.
- Raisin: A savings and investment marketplace, Raisin connects banks with customers across Europe. By listing their CD products on Raisin, banks can tap into a more extensive customer base and offer competitive rates to attract new deposits.
- RateWatch: This tool provides banks with competitive intelligence by tracking and comparing CD rates offered by competitors. By staying informed, banks can adjust their rates to remain competitive.
- BankRate: While popular for loan comparisons, BankRate also offers a platform for banks to list their CD rates. Its vast user base ensures that your CD products get ample visibility.
- Fintech Apps: Collaborate with fintech apps that offer financial planning or investment advice. These platforms can recommend your CDs to users looking for stable investment options.
- CD Ladder Tools: Offer tools that help customers create a CD ladder, allowing them to optimize their returns while ensuring liquidity. By providing such value-added services, you can attract more seasoned investors.
- CDs remain a stable and attractive investment option for many in the ever-evolving banking landscape. By leveraging digital channels and utilizing popular tools like CDValet, DepositAccounts.com, and Raisin, banks can effectively market their CD products and stay ahead of the competition. Understanding the customer’s needs and preferences is critical to crafting a successful CD marketing strategy.
Overwhelmed? Let BankBound Guide You
Whether promoting your CDs via social media, or emails, BankBound is your resource to generate measurable and cost-effective results for your financial institution with digital marketing strategies aimed to assist you in your marketing efforts. Contact us today to get started.