Increasing Brand Equity in the Financial Services Industry
The Importance of Digitization and Customer Perceptions
Digitalization is affecting our day to day life in a vast pace. These developments also have a massive effect on the customer perception and – expectations.
This could be either an opportunity or a major downfall for many industries. Tech enterprises such as Amazon and Google are cleverly moving along with the digital trends and that shows in the way they interact with their customers: responses within the hour, personalized offers, and communication through multiple channels. By offering digital customer interactions and communicating with customers through their day to day devices, they raised the bar of customer expectations.
Customers are increasingly digital and are handling their finances more and more through different (mobile) devices. Their needs and expectations are the same, and they expect financials to adopt new technology as fast as companies in other sectors. Financials need to offer a better customer experience, that’s instant, personal, frictionless and relevant. At the same time, banks are confronted with the continuous regulatory burden and a prolonged period of ultra-low interest rates. Increase customer loyalty through innovation. Digitization and branding are more than ever necessary to survive in the long term.
Customer loyalty the biggest challenge of banking industry
The banking industry sees technology vendors such as Amazon and Google as major threats. According to a survey conducted by Temenos, 30% of the respondents cited that customer loyalty is the industry’s biggest challenge. For the banking industry, there are some challenges lying ahead. But it also creates incredible opportunities if it is well anticipated.
Source: Succeeding Through Digital Revolution, Temenos
“The banking industry is undergoing a once in a generation shift, a second big bang. “…”It is digitization, changing customer behavior and regulation that are driving the change. What is encouraging about these results is that banks appear to be both cognizant of the challenges ahead and making many of the right investments to be able to offer the customer-centric banking services to compete successfully in the future.” David Arnott, CEO of Temenos
How to increase brand value with customer perceptions
The Customer Based Brand Equity Model, Keller
According to Keller’s Brand Equity Model, in order to build a strong brand, you have to build the right type of experiences around your product. That involves product innovation and communication. Consumers trust brands they know. After that, consistency is key. This implies to all (marketing) communication. Consumers know what (or better said, who) and what kind of service to expect from you. It increases the chance of one becoming a loyal customer:
“Authenticity of content is the most influential factor in following a brand” Pardot
Being authentic and consistent in communication has a major influence on a customer’s trust and loyalty. In order to achieve that, there are some organizational adjustments you can do and the tools are available to help you along the way.
Also read: Why You Need a Brand Style Book ASAP
How digitization can increase brand equity
“The power of the brand lies in the minds of the customers” Keller (1991)
Brand equity is based on the customer’s perceptions, preferences, and knowledge of the product or service. All revolves around the brand’s identity and the communication of the brand. In essence, it is a factor of a brand’s ability to keep and attract customers.
Whether you are in customer service or a data analyst, everyone in the financial industry uses brand communication of some type. The brand identity is communicated in all sorts: through business cards, Facebook posts, an email signature or business and sales presentations.
Many companies have media libraries to organize all digital media and to ensure brand consistency through all communication. Digital Asset Management or Brand Asset Management, which goes beyond owning a media library, has made a significant rise the past decades and plays an important role in brand management.
Digital Asset Management:
Improves brand consistency;
Increases communication strength;
Increases brand value or equity;
Reduces structural costs.
In conclusion, digitizing and centralizing all digital assets (including brand assets such as logo’s, illustrations) and by standardizing templates for marketing material improves brand consistency and alters the perception of the brand. Digitization is a big step towards increasing brand equity and ultimately raises customer loyalty.
Learn more about how Digital Asset Management can improve the brand equity of your financial firm.
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