Banks Need to Collect More Insights to Communicate Effectively

By Bob Williams, Director of Marketing Technologies at Harland Clarke and author of the blog, The Merchant Stand.

A friend and colleague Jim Marous shared an article from American Banker on Googe+ entitled Banks Underuse Mobile for Communication. The article discusses challenges that financial institutions have with communicating with their customers through mobile devices. While mobile device applications and mobile optimized sites are becoming more common, and expected by account holders, financial institutions are not using the mobile channel for proactive communication. Kael Kelly, senior director at Varolii is quoted in the article “Banks don’t have the data that they need. A lot of the phone number data doesn’t easily distinguish between a mobile number and a land-line.”

So the idea that banks don’t know what data they have made me think about some other data that Jim Marous shared about financial institutions and customer data. Like this tweet about banks not having email addresses for their account holders.

The challenge I see is missing or unintelligible customer profile data. That problem expands beyond the boundary of the financial services industry. It’s really a common need for any type of business. Another challenge is the misuse (or lack of use) of the data that an organization has. Another conversation with Jim last week revealed that he noticed his bank mention that online banking was 'down' using Twitter. While admirable that they used a more modern social media tool for this notification, there probably aren't many people following Twitter the way Jim does. Making matters worse, they didn't use either his email address (which is tied to his online banking account) or SMS (the bank has his cell phone) to make this notification. In other words, the bank had the tools, but didn't use what was at their disposal.

There’s no doubt that many organizations have a good process to manage customer profile data and communication. But for those that don’t, I believe there is a fairly simple solution.

A Simple Multi-Solution for Collecting Profile Data
The first step is to collect accurate information at the time of new account opening. That seems obvious, but for many businesses this may require updating the customer/client profile record to support addresses for current communication mediums. That means distinguishing between phone number types such as home, mobile, work etc. It means a place for an email address as well. If is it a business, you may also want to include a variable field for social media type contact information. At a minimum, require one phone number and one email address. If the customer insists they do not have an email address, then fill the field with an agreed upon standard such as (noemail@yourbusinessdomain.com)

I understand there are regulations governing anti-spam communications via email and SMS text. But I don’t think banks or other businesses need to over think/engineer a basic solution to keep accurate profile data.  The email and phone number should be required and make sure the customer knows when they establish the account that you may use this information to contact them with important notices about their account. You can optionally create a permission indicator (opt-in) that is designated for future marketing or non-marketing communications. While these changes may require IT, online banking and branch management support, the customer experience and cost benefits are significant.

A Simple Multi-Channel Solution for Keeping Profile Data Accurate
I suggest sending notifications through multiple channels annually for customers to check and update their profile contact information. Here are some possible touch points:

1. Pop up in the online account area after login.  Remember, customers are in your system by their own choice. So this is a fair message to display to them regularly. This is also an area where the customer can self-serve any updates they need to make.
2. Email reminder. Don’t ask the customer to login from the email message or reply to it. That’s a technique used by phishing attacks and creates mistrust. Rather, use the email to notify and request the customer update their profile information the next time they login to their online account or the next time they visit a branch/store location.
3. Post the reminder message on Facebook/Google+/Twitter and other social sites where customers may follow your brand for the purpose of receiving communication. These social medium platforms are broadcast platforms. You don’t need permission to place messages there and customers that see a message from your account page are there by their own choice.
4. Leverage the ATM. While some ATMs are equipped with interactive communication options, the ATM can at least be used as a reminder tool. Of maybe use a QR code on the ATM for customers to go to a log-in site for updating.
5. Put the reminder message in a recording for customers holding for live assistance. It’s a simple reminder that they should keep their profile information up-to-date to help with important account notifications.
6. Have any branch/store employees verify with customers on a designated week (quarterly or annually) that their information is up-to-date information. This only covers the customers that are serviced in-person for that week, but it’s a great touch point for interaction and shows that your brand is proactive to keep good records. Branch POS material can also emphasize the need for updated information.
7. Messaging on all statementing and promotional materials. Emphasizing the 'green' aspects of keeping all communication channels up to date makes this a priority all year long.

Since some customers may have fees associated with SMS texting, it’s not advisable to use that channel unless you have established that as part of their profile setup.

The email channel is different in this multi-channel approach because it is a message to an individual area. In fact, email addresses that are not accurate may return as undeliverable. Consider monitoring undeliverable emails and putting these customers on a list for follow-up through other means such as phone or postal mail.  Alternatively, remove email addresses from the profile record if they are not deliverable after three attempts.

What do you think? Should it be difficult to keep accurate profile data and request the customer update/verify it with recurring frequency? Do you have a process or program at your organization that has worked? I would love to know.

QR Codes Are Mobile Gateway for Bank Marketers

As the use of smartphones increases, more and more marketers are leveraging QR, or quick response, codes to drive prospects and customers to promotional content or to expand a conversation. While usually a black and white square, QR codes can also be colorful and can have patterns or logos embedded in them and around them, as long as the code itself works properly.

To access, the viewer only needs to download one of several free QR code reader apps on to their smartphones (some phone are already loaded with this application). When the viewer sees a QR code on a poster, billboard, print advertisement or even on a product itself, they focus their camera on the image and the application will recognize the code and automatically open up the link to an offer, video or other unique content in the phone's browser giving the marketer the ability to share information or offers immediately at a very low cost (marketers can generate QR codes for free).

Retailers, bankers and other marketers are increasingly taking advantage of this relatively low cost marketing tool. Walmart, Target, Macy's and Starbucks are already in on the QR Code wave by offering coupons and membership benefits with a simple scan of the code. Airlines are using QR codes instead of tickets for check-in and consumer product companies are placing QR codes on their products to illustrates uses, nutritional information, etc. One thing's for sure, it is only a matter of time before more marketers start seeing how effective QR codes can be and how it can save them lots of money in advertising dollars in the future.

And consumers are responding. According to a February survey of U.S. smartphone users by MGH, a Baltimore social-media marketing company, 65% of responders had remembered seeing a code with half scanning the code. Of those, 53% said they used the code to get a coupon or discount while 52% used the code to get additional information. When asked why would they be interested in using a QR code in the future, 87% mentioned the desire to get a coupon or discount while more than 60% would use the tool to access more information. Possibly due to the newness of the marketing tool, 72% said they would be more likely to remember an advertisement with a QR code.


Source: MGH, February 2011

While many QR codes are general in nature and used in mass channel marketing, these codes can also send a person to a landing page to collect additional insight before sending them to the content or a personalized QR code can be generated to deliver personalized messages on direct mail, email and other direct channels. Since the QR code is unique and tied to a specific recipient, the marketer will have the ability to see who responds to a marketing piece and when. This type of data could then be used to further refine and personalize marketing messages or for targeted follow-up campaigns.

Other benefits of this tool include:

• Anytime, Anywhere Marketing: Since any smartphone can decode and special software is not needed, your message can be made available anywhere a person carries their phone.
• Channel Shift: QR codes make it easier to move from mass media or even print based marketing to the web increasing the effectiveness of a campaign and integrating media.
• Tracking: QR codes can measure how many people are using the code and at what time. By having easily traceable analytics, firms can view results and know if their QR code campaign is successful. If using personalized QR codes, this enhances the value of the insight to the household or customer/prospect level.
• Cost Savings: Instead of continuously reprinting promotional or sales material, a QR code can be used to direct a prospect or customer to continuously updated content or offers.
• Brand Enhancement: Using QR codes can enhance your brand's image as a technologically advanced firm and can expand your mobile channel's use. If the linked offer or content is unique, it can also set the stage for improved program results in the future and positive word of mouth.

There are some drawbacks, however. For instance, not everyone has a smartphone or is familiar with QR codes, and scanning is not always intuitive. Therefore, QR codes should usually be accompanied with text such as, "Scan with your barcode scanner on your phone."

So how can banks leverage the interactivity and immediacy of QR codes?

Many banks are starting to use QR codes in conjunction with billboard or display advertising where space is limited and where there is a desire to provide additional information. For instance, TD Bank is using QR codes on bus shelter advertising to promote the locations of their branches with Sunday hours. Simply scan the code and the TD Bank branch locator opens on the smartphone's browser providing the closest branch with Sunday hours.

AXA Bank got extremely innovative with their QR code enhanced marketing campaign, using 3844 tins of paint on a billboard to promote their renovation loans. When a person scanned the three dimensional code, they were taken to a mobile application that described the promotion. A video of the program development is even available on YouTube.

Last year, Colorado based FirstBank used QR codes on a series of airport signboards to support their 'Helpfullness' campaign. For those people on the go, they provided free downloads of classic books, Sudoku and crossword puzzles. The signboards provided clear instructions as to how to download and even provided a URL for those without a smartphone.

While QR codes are usually used in conjunction with non-electronic media, Chase has integrated a QR code to simplify the download of their new Android mobile banking app. As part of an animated marketing sequence for mobile banking on their web site, Chase provides an alternative to traditional keypunching to download the app with the QR code starting the process for the customer.

TD Bank also provides three different QR codes on their mobile banking site for customers wanting to immediately download the mobile banking app for a Blackberry, iPhone or Android.

The key to using QR codes is that the rewards one gets for scanning a code need to be valuable. This form of marketing works best in conjunction with a special offer not available elsewhere or to deliver unique content when customers or prospects are not in front of their computer. In other words, QR codes should not be used to simply take customers to more printed material.

Here are additional ways banks could leverage the power of a QR code:

• Supplement billboard, print or branch marketing with video content that more fully describes a promotion or provides a special offer.
• As a replacement or supplement for a traditional product brochure rack in a branch allowing for product offers and continuously updated product information.
• Link to bank spokesperson or other representative of influence in the bank (economic reviews, annual shareholder meetings, etc.).
• Promotional offer for mobile banking customers in branch or on website.
• ATM screen integration to provide expanded information or offer instead of traditional receipt printout.
• Supplemental information in conjunction with a direct marketing campaign (sweepstakes entry, branch locator, video program description)
• Updated rates and/or competitive grids and linkage to online financial management tools.
• A means to capture permission-based mobile phone numbers, email addresses and other customer insight.

I am sure there are more ways to use QR codes that we will see in the coming months as bank marketers try to leverage their mobile banking and mobile communications technology. Are you using QR codes currently? Do you intend to in the next several months? Let me know by leaving a comment here or on my Linkedin page (QR code provided above).

Addendum: Thanks to Nathan King and the people at Austin & Williams advertising for the great infographic below that compiles many of the industry statistics around QR codes.