How Social Media Data Improves Cross-Selling for Banks
By Doug Wilber
JThe ability to collect, interpret and act on current customer data to sell targeted products and services is a key revenue driver for banks, especially mortgage lenders. Borrowers buy an average of 11 mortgages in their lifetime, but lenders retain on average less than 20% of old customers. That’s a lot of missed opportunities.
A survey of nearly 300 financial institutions found that 64% of respondents do not use data to cross-sell to existing customers. It makes sense: in today’s fast-paced landscape, many financial services marketers have enough on their hands.
Digital marketing is changing at a breakneck pace and it can be difficult to keep up with the constant developments, let alone all the data. Many marketers don’t know how to access or analyze customer data to take advantage of cross-sell opportunities. To further complicate the situation, significant structural barriers, such as siled teams, can limit communication between data analysts and marketers.
Many marketers spend the time and resources they have on acquiring new customers, but cross-selling through the ranks of existing customers is a much more lucrative strategy. Acquiring new customers is significantly more expensive than retaining existing customers. Increasing customer retention rates by as little as 5% can increase profits by 25-95%.
Social Media Marketing Strategy for Banking Cross-selling
Fortunately, collecting the right customer data to fuel cross-selling efforts doesn’t have to be a daunting task. A solid social media marketing strategy is a great way to collect and act on valuable data, and with the right approach, can be easily implemented at scale. Consider the following key principles for effectively collecting and integrating social media data and improving your cross-selling game:
1. Understand your audience and what is important to them. Social media is a great listening tool. By tracking likes, comments, shares, and clicks, you can gain valuable insight into what content resonates with existing customers and cross-sell opportunities. Remember that tracking existing customer engagement is critical; while the probability of selling to a new prospect is only 5-20%, the probability of cross-selling to a customer is 60-70%.
Consider, for example, that you shared a post with advice for first-time home buyers. the post is getting a lot of engagement from your current followers, many of whom have accounts with you. This could indicate that these customers are interested in getting their first mortgage.
2. Target your message strategically. Social media is also a powerful targeting tool. Once you’ve collected engagement data, create custom lists in your customer list and retarget those customers with paid social media ads for relevant cross-selling opportunities. Retargeting is a great way to add power to your existing organic social media strategy. Building on the example above, this might look like targeting ads for new mortgage applicants to existing customers who interacted with your first home buying ad.
When targeting paid ads, remember that timing can go a long way towards effectiveness and efficiency. You want to personalize ads to deliver the right messages at the right time. For example, a year after someone takes out a mortgage with your institution, you know they already own a home, trust your institution, and may be considering renovations. You can take advantage of the cross-selling opportunity by offering them a home equity loan for improvements ad when they are probably considering embarking on a new project.
3. Use content to build customer loyalty. You can also use engagement data to see which customers haven’t interacted with your team recently. Use paid social media as an opportunity to remind those customers why they chose you in the first place and show them what you still have to offer with valuable digital journeys. Re-engagement initiatives shouldn’t create digital dead ends, they should inspire your customers to engage more with your brand.
Create links to custom landing pages from paid and organic posts to guide customers to valuable content and route content behind contact submission forms to collect more valuable data from customers. For example, your home buying advice post will pique the interest of customers looking to secure their first mortgage. Include a link in the message to a landing page on your website that contains a guide for first-time mortgage applicants. Customers can put their information in the contact submission form in exchange for the guide, and the form can alert your team to make a follow-up call. The customer gets valuable insights and your team has a cross-sell opportunity on their hands.
Combined, these principles aim to increase revenue and build stronger relationships. When you use data to understand your customers, deliver content when it matters most, and personalize the digital journey, you can keep customers engaged and deliver more and more value to them through targeted cross-selling opportunities.
Doug Wilber is the CEO of Denim Social, a social media management software company that provides tools for marketers in regulated industries to manage organic social media content and paid social media advertising on a single platform. .