# Forget the funnel: Financial marketing must become a virtuous circle
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-01-07
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Revolutionising Traditional Banking with Customer Data
Meta Description: Discover how digital-first challengers are reshaping the age-old marketing funnel in the banking industry, with a focus on personalised customer interactions.
URL: https://financedigest.com/forget-the-funnel-financial-marketing-must-become-a-virtuous-circlehtml

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_By **Doug Gross**, CEO at NGDATA_

Digital-first challengers have disrupted the old, cosy club of High Street banks, harnessing the power of customer data to deliver tailored financial products, services and customer interaction.What’s more, people today are likely to have accounts at more than one institution, with savings, credit cards, loans and other financial products held with different financial providers, further complicating banks’ ability to understand their customers.

Traditional banks are well aware of this challenge, with [almost half admitting](https://www.forbes.com/sites/insights-teradata/2019/05/06/banks-analyze-customer-data-make-finance-personal-us-bank/) that they don’t make the best use of customer data.But they also need to know that remaining relevant to the [modern customer isn’t just a matter of gathering and analysing data](https://www.financedigest.com/modern-data-protection-how-organisations-can-protect-against-cyber-attacks.html "Modern Data Protection: How organisations can protect against cyber attacks"), important as that is. It also requires a fundamental re-think of how to apply this insight to reshape the age-old – and no longer fit-for-purpose – [model of the marketing](https://www.financedigest.com/research-and-technological-innovations-to-bolster-developments-in-animal-model-market.html "Research and Technological Innovations to Bolster Developments in Animal Model Market") funnel.

**From funnel to circle**

![Doug Gross](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/doug-gross-450x450-1736838977097-compressed.jpg)

Doug Gross

Attracting [customers used to be a relatively](https://www.financedigest.com/customized-innovation-to-drive-the-aids-related-cancer-market.html "Customized innovation to drive the Aids Related Cancer Market") simple affair. A business would first seek to gain brand awareness and build this into familiarity, before persuading the customer to [consider and then open](https://www.financedigest.com/volvo-car-considers-opening-third-plant-in-europe.html "Volvo Car considers opening third plant in Europe") an account or purchase a product. Every subsequent interaction between [brand and consumer would then be focused](https://www.financedigest.com/brand-metrics-hires-taylor-sturtevant-as-it-focuses-on-growth-in-the-us.html "Brand Metrics hires Taylor Sturtevant as it focuses on growth in the US") on loyalty.

That’s not how the [world works](https://www.financedigest.com/the-importance-of-information-security-in-a-post-pandemic-hybrid-working-world.html "The importance of information security in a post-pandemic hybrid working world") in the digital age. McKinsey found that purchasing decisions no longer follow this linear pathway; it should rather be seen as comprising a network of touchpoints, each of which provides an opportunity for a [customer to reject or accept the brand](https://www.financedigest.com/how-brands-can-adapt-marketing-tactics-to-better-suit-customers-changing-shopping-habits.html "How brands can adapt marketing tactics to better suit customers’ changing shopping habits"). What’s more, [marketing itself has moved](https://www.financedigest.com/the-biopesticides-market-to-move-towards-constructive-advancements.html "The Biopesticides Market To Move Towards Constructive Advancements") on. It’s now less about pushing messages out to prospective customers, but instead focused on pulling them in with engaging campaigns and content.

As brands [move away](https://www.financedigest.com/exclusive-eu-to-move-away-from-emergency-phase-of-covid-pandemic-document.html "Exclusive-EU to move away from emergency phase of COVID pandemic – document") from the funnel towards a more circular model of customer interaction, customer data is playing an increasingly important role. The challenge for established banks is not a paucity of information, but how to ensure that they can use it effectively and ensure they aren’t letting valuable [data slip](https://www.financedigest.com/oil-slips-on-china-covid-curbs-weak-factory-activity-data.html "Oil slips on China COVID curbs, weak factory activity data") through their fingers.

[**Avoiding past marketing mistakes**](https://www.financedigest.com/mistakes-to-avoid-while-choosing-a-private-money-lender.html "Mistakes To Avoid While Choosing a Private Money Lender")

The big mistake that banks have made in the past is to assume that marketing [communications](https://www.financedigest.com/optical-satellite-communication-market-emerging-trends-to-boost-the-global-revenue-growth-discussed-in-a-new-market-research-report-by-tmr.html "Optical Satellite Communication Market – Emerging Trends to Boost the Global Revenue Growth Discussed in a New Market Research Report by TMR") need not be personalised and that the same generic messaging will have the desired effect on everyone at every stage of the marketing funnel.

The challenge for [banks is to convince its customers](https://www.financedigest.com/how-close-can-banks-get-to-their-customers.html "How close can banks get to their customers?") that they’re viewed as more than just a number. That’s difficult when a pensioner receives an email [urging them to save](https://www.financedigest.com/grid-operator-urges-ukrainians-to-save-electricity-as-temperatures-drop.html "Grid operator urges Ukrainians to save electricity as temperatures drop") for their retirement, or when someone on a low income is sent information about mortgages. The same goes for offers from [banks’ partners like retailers](https://www.financedigest.com/the-power-of-digital-why-theres-still-life-in-the-traditional-retail-banks-yet.html "The power of digital: Why there’s still life in the traditional retail banks yet") or restaurants: these sweeteners can be effective, but only if they reach the right people at the right time.

Generic [messages might conceivably have worked in the days of the marketing](https://www.financedigest.com/premium-a2p-and-p2a-messaging-market-surpass-revenues-worth-us-75-bn-in-2029.html "Premium A2P and P2A Messaging Market surpass revenues worth US$ 75 Bn in 2029") funnel, but today they will do far more harm than good. The more that customers engage with [banks and the more of their data they share](https://www.financedigest.com/asia-shares-edge-higher-wary-of-us-bank-data.html "Asia shares edge higher, wary of US bank data"), the greater the personalisation that they expect in exchange. That’s what the marketing circle is all about: a never-ending relationship where communications are constantly refined based on the best available data.

High street retailers (among others) have been pretty quick to understand how new technologies such as mobile and [social media](https://www.financedigest.com/elon-musk-goes-viral-on-chinese-social-media-with-ancient-poem-post.html "Elon Musk goes viral on Chinese social media with ancient poem post") have made the marketing funnel redundant. They [don’t just know](https://www.financedigest.com/women-in-technology-that-you-should-know-but-probably-dont.html "Women In Technology That You Should Know (But Probably Don’t)") whom to market to, but when to repeat a message and on which platform(s) so that it reinforces their offerings in someone’s mind.

It’s not that [banks don’t](https://www.financedigest.com/dont-play-second-fiddle-how-disruptor-banks-can-leverage-music-and-audio.html "Don’t Play Second Fiddle: How Disruptor Banks Can Leverage Music and Audio") know that this is important; it’s just that they face significant difficulties in effectively harnessing the data on which such personalisation depends. That’s where new technologies can make a real difference, helping [banks to get a handle on their most valuable resource – data](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?").

**Finding data nirvana**

The [marketing circle is about more than just personalised communications towards the smallestpossible segment:](https://www.financedigest.com/chondroitin-market-overview-analysis-by-top-players-product-segments-market-size-and-leading-key-players-2022-2029-2.html "Chondroitin Market Overview & Analysis by Top Players, Product Segments, Market Size and Leading Key Players 2022- 2029") it is about getting the right message to the right person at the right time. That means more than just pushing out messages, even if those messages are, at first sight, tailored to the individual.

Because true personalisation is more than just content; it’s about timing, too. Sometimes a message needs to be reinforced several times before it ‘sticks’ with the recipient; at other times, just a single [marketing communication](https://www.financedigest.com/marketing-communications-is-a-business-critical-pillar-now-and-in-a-post-pandemic-future.html "Marketing Communications is a business-critical pillar now – and in a post pandemic future") can be effective, but only if it arrives at exactly the right time – for example, when a couple are getting married or are about to have children.

Getting the content and timing of these messages right depends on banks having not only full mastery of their own data, but the ability to use information from a [mass of external sources](https://www.financedigest.com/exclusive-renault-considers-making-mass-market-evs-in-india-sources.html "Exclusive-Renault considers making mass-market EVs in India -sources"), too. For example, if someone tweets their joy at a marriage proposal, then [banks need](https://www.financedigest.com/traditional-banks-need-an-overhaul.html "Traditional banks need an overhaul") to be able to send an immediate and relevant message – about loans for the wedding, say. The same goes for any other life event, from to [buying a house](https://www.financedigest.com/buying-a-house-for-the-first-time.html "Buying a house for the first time") to saving for funerals.

That’s obviously a lot of data (and data sources) to deal with, especially given the rarity of trained data scientists. Fortunately for banks, the [next generation](https://www.financedigest.com/siya-kolisi-empowers-next-generation-with-red-bull-roots.html "Siya Kolisi empowers next generation with Red Bull Roots") of intelligent engagement platforms will be able to gather data from a huge range of sources, analysing and categorising the information so that it’s useable within minutes.

By building the clearest picture of each individual – for example, their interests, current financial needs and upcoming life events – [banks can not only create ever-evolving and always-updated customer](https://www.financedigest.com/canadian-banks-fighting-brokers-back-for-customers.html "Canadian Banks Fighting Brokers Back For Customers") DNA profiles, banks can completely transform their communications. Instead of the outdated funnel, they can [create a virtuous circle of marketing](https://www.financedigest.com/could-the-surging-build-to-rent-market-create-emerging-opportunities-for-investors.html "Could the surging build-to-rent market create emerging opportunities for investors?"), where the right message is delivered to the right person at the right time, wherever they are on life’s journey.


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