Marketing Financial Services Essay Example | Topics and Well Written Essays - 2000 words

Marketing Financial Services - Essay ExampleThe greatest asset of any consumer finance business is its base of customers. In the current agonistical market, acquisition of profitable customers is tricky and tough. Nurturing the relationship into long-term profitable assets require lots of perseverance, innovation, and research. All customers atomic number 18 different, and to acquire the value they bring, they need to be tempered differently.There argon many methods to acquire customers. Advertising is one of the foremost methods.US Advertising Spending by Financial Services companies by media 2003 & 2004 (as a % of total spending).....Source TNS Media Intelligence & Advertising, June 200520032004TV27.7%31.15Newspaper23.8%22.4%Magazine14..7%15.5%Cable TV12.9%12.5%Internet 14.7%12.5%Radio3.2%3.0%Outdoor3.1%3.0%Acquiring new customers through email and maneuver mail merchandising are other methods that are fast and cost-efficient. With the help of thousands of interest categories d emographic information, and behavioral targeting, you can find the exact people you are looking for and then giving you the information you need to convert these prospects into customers through email and direct mail marketing.CUSTOMER RETENTIONCustomer retention marketing is a tactically-driven approach based on customer behavior. Its the core activity way out on behind the scenes in relationship marketing, loyalty marketing, database marketing, licence marketing, etc.... information, and behavioral targeting, you can find the exact people you are looking for and then giving you the information you need to convert these prospects into customers through email and direct mail marketing.CUSTOMER RETENTIONCustomer retention marketing is a tactically-driven approach based on customer behavior. Its the core activity going on behind the scenes in relationship marketing, loyalty marketing, database marketing, permission marketing, etc.Heres the basic philosophy of a retention-oriented m arketer1. Past and current customer behavior is the best predictor of future customer behavior. Example Take these two groups of potential buyers who surf the netPeople who are a perfect demographic match for your site, but have never made a purchase online anywhere and people who are outside the core demographics for your site, but have repeatedly bought online at many different web sitesIf you sent a 20% promotion to each group, asking them to visit and make a first purchase, resolution would be higher from the second group than the first group. It works because actual behavior is better at predicting future behavior than demographic characteristics are.2. Active customers are happy (retained) customers and they like to win. They like to feel they are in control and smart about choices they make, and they feel good about their behavior. Marketers take advantage of this by offering promotions of various kinds, ranging from discounts and sweepstakes to loyalty programs and concept approaches such as thank-you notes and birthday cards. If you want your customers to do something, you have yo do something for them, and if its something that makes them feel good, then theyre