Local banks and insurers are battling to attain new customers, but should they move more services online they can improve efficiency and gain better visibility, writes BIANCA QUINN DIAVASTOS, MD of 25AM.
South African banks and insurers have long struggled with the high costs of customer acquisition and fierce competition to attain new customers. The move online offers them ways to improve the efficiency and effectiveness of their acquisition efforts and gain better visibility into the performance of their marketing spend.
The key here is how financial services companies can use data and analytics tools to streamline their customer journeys and make better informed decisions about their customer acquisition strategies. Today, they have information at their fingertips that can help them to find the best mix of media and engagement tools (lead generation and product offers) to create targeted online and offline customer journeys that reach new customers.
Here are some ways that financial services companies can drive better return on investment (ROI) from their online customer acquisition efforts:
Optimise for mobile
When thinking about ad placements, search engine optimisation and customer conversion, financial services companies would do well to remember that a high proportion of financial transactions and searches for financial products happen on mobile devices. We have found in South Africa that our financial service clients’ customers and prospects do most of their research for home loans and short-term insurance on mobile devices.
Embrace programmatic advertising
Programmatic advertising offers more than just advertising reach – it is also a wonderful tool for lead generation and customer acquisition.
Financial services companies can use programmatic advertising to reach the right person, at the right time and at the right price. Programmatic ad buys make it easier to segment audiences, deliver personalised messaging to them, and then measure the results.
This means that a financial services brand can see which placements and messages helped to generate leads and convert customers as well as how much these customer acquisitions cost them versus the value they generated. We can take this even further by measuring the value of a lead or customer – for example, the potential value of the interest it could generate from a home loan applicant over the period of the mortgage.
Use re-marketing to turbo-charge your efforts
Remarketing is one of the best tools a bank or insurer has at its disposal to improve customer conversions in a cost-effective manner. Remarketing is all about presenting a follow-up digital ad or email message or offer to a customer who has already expressed interest in the brand’s products and services.
For example, a customer that has already browsed mortgages on a bank’s website is probably looking to buy a house and is thus more likely to convert. The re-marketing message needs to be carefully thought-out and reach the person at the right time to ensure conversion. Some questions to consider:
• What kind of message did they react to the first time? How should this shape the response or follow-up message?
• What does history tell us about the journey? For example, have they moved beyond researching a car insurer towards getting quotes?
Make it easy for customers to get in touch
Once the brand has the customer’s attention, it shouldn’t squander the opportunity by making it difficult for the customer to find out more or get in touch. For example, don’t ask a customer to fill in a long form to express interest in a loan – keep it to three or four of the most important questions. Make it easy to look up more information on your website or contact an agent through an instant message or click-to-call link. Again, remember the customer might be engaging with you from a mobile phone and will expect convenience, ease of use and simplicity.
Provide valuable content
Customers shopping for banking or insurance products want information and answers at their fingertips so they can make informed comparisons. It’s important to invest in good content that will answer customers’ questions when they discover a financial services need and start investigating their options.
Content should be personalised based on what the bank or insurer knows about where the customer is in his or her journey as well as any behavioural or demographic data it has managed to collect. Interactive tools like calculators are also a great way to interact with customers.
Understanding the journey
Building a successful customer acquisition strategy is all about using data and analytics to fully understand the customer journey. This must go far beyond simple metrics like impressions and click-throughs. Financial brands should look at how their audiences react to their messages and offers; How are they engaging? What are they sharing? What are they engaging with the most? What are the touchpoints in their journey?
Furthermore, cost per acquisition is emerging as one of the most important metrics in the digital marketing world and one that financial brands need to embrace in order to measure the real value behind their digital marketing investments. Brands that wish to effectively leverage digital marketing tools to acquire new customers need to engage with digital agency partners who ultimately demonstrate real accountability by measuring their success through harder metrics such as customer acquisition rather than hiding behind the click.
Money talks and electronic gaming evolves
Computer gaming has evolved dramatically in the last two years, as it follows the money, writes ARTHUR GOLDSTUCK in the second of a two-part series.
The clue that gaming has become big business in South Africa was delivered by a non-gaming brand. When Comic Con, an American popular culture convention that has become a mecca for comics enthusiasts, was hosted in South Arica for the first time last month, it used gaming as the major drawcard. More than 45 000 people attended.
The event and its attendance was expected to be a major dampener for the annual rAge gaming expo, which took place just weeks later. Instead, rAge saw only a marginal fall in visitor numbers. No less than 34 000 people descended on the Ticketpro Dome for the chaos of cosplay, LAN gaming, virtual reality, board gaming and new video games.
It proved not only that there was room for more than one major gaming event, but also that a massive market exists for the sector in South Africa. And with a large market, one also found numerous gaming niches that either emerged afresh or will keep going over the years. One of these, LAN (for Local Area Network) gaming, which sees hordes of players camping out at the venue for three days to play each other on elaborate computer rigs, was back as strong as ever at rAge.
MWeb provided an 8Gbps line to the expo, to connect all these gamers, and recorded 120TB in downloads and 15Tb in uploads – a total that would have used up the entire country’s bandwidth a few years ago.
“LANs are supposed to be a thing of the past, yet we buck the trend each year,” says Michael James, senior project manager and owner of rAge. “It is more of a spectacle than a simple LAN, so I can understand.”
New phenomena, often associated with the flavour of the moment, also emerge every year.
“Fortnite is a good example this year of how we evolve,” says James. “It’s a crazy huge phenomenon and nobody was servicing the demand from a tournament point of view. So rAge and Xbox created a casual LAN tournament that anyone could enter and win a prize. I think the top 10 people got something each round.”
Read on to see how esports is starting to make an impact in gaming.
Blockchain is generally associated with Bitcoin and other cryptocurrencies, but these are just the tip of the iceberg, says ESET Southern Africa.
This technology was originally conceived in 1991, when Stuart Haber and W. Scott Stornetta described their first work on a chain of cryptographically secured blocks, but only gained notoriety in 2008, when it became popular with the arrival of Bitcoin. It is currently gaining demand in other commercial applications and its annual growth is expected to reach 51% by 2022 in numerous markets, such as those of financial institutions and the Internet of Things (IoT), according to MarketWatch.
What is blockchain?
A blockchain is a unique, consensual record that is distributed over multiple network nodes. In the case of cryptocurrencies, think of it as the accounting ledger where each transaction is recorded.
A blockchain transaction is complex and can be difficult to understand if you delve into the inner details of how it works, but the basic idea is simple to follow.
Each block stores:
– A number of valid records or transactions.
– Information referring to that block.
– A link to the previous block and next block through the hash of each block—a unique code that can be thought of as the block’s fingerprint.
Accordingly, each block has a specific and immovable place within the chain, since each block contains information from the hash of the previous block. The entire chain is stored in each network node that makes up the blockchain, so an exact copy of the chain is stored in all network participants.
As new records are created, they are first verified and validated by the network nodes and then added to a new block that is linked to the chain.
How is blockchain so secure?
Being a distributed technology in which each network node stores an exact copy of the chain, the availability of the information is guaranteed at all times. So if an attacker wanted to cause a denial-of-service attack, they would have to annul all network nodes since it only takes one node to be operative for the information to be available.
Besides that, since each record is consensual, and all nodes contain the same information, it is almost impossible to alter it, ensuring its integrity. If an attacker wanted to modify the information in a blockchain, they would have to modify the entire chain in at least 51% of the nodes.
In blockchain, data is distributed across all network nodes. With no central node, all participate equally, storing, and validating all information. It is a very powerful tool for transmitting and storing information in a reliable way; a decentralised model in which the information belongs to us, since we do not need a company to provide the service.
What else can blockchain be used for?
Essentially, blockchain can be used to store any type of information that must be kept intact and remain available in a secure, decentralised and cheaper way than through intermediaries. Moreover, since the information stored is encrypted, its confidentiality can be guaranteed, as only those who have the encryption key can access it.
Use of blockchain in healthcare
Health records could be consolidated and stored in blockchain, for instance. This would mean that the medical history of each patient would be safe and, at the same time, available to each doctor authorised, regardless of the health centre where the patient was treated. Even the pharmaceutical industry could use this technology to verify medicines and prevent counterfeiting.
Use of blockchain for documents
Blockchain would also be very useful for managing digital assets and documentation. Up to now, the problem with digital is that everything is easy to copy, but Blockchain allows you to record purchases, deeds, documents, or any other type of online asset without them being falsified.
Other blockchain uses
This technology could also revolutionise the Internet of Things (IoT) market where the challenge lies in the millions of devices connected to the internet that must be managed by the supplier companies. In a few years’ time, the centralised model won’t be able to support so many devices, not to mention the fact that many of these are not secure enough. With blockchain, devices can communicate through the network directly, safely, and reliably with no need for intermediaries.
Blockchain allows you to verify, validate, track, and store all types of information, from digital certificates, democratic voting systems, logistics and messaging services, to intelligent contracts and, of course, money and financial transactions.
Without doubt, blockchain has turned the immutable and decentralized layer the internet has always dreamed about into a reality. This technology takes reliance out of the equation and replaces it with mathematical fact.