Influencer Marketing can solve these 3 BFSI Industry Challenges
“Banking and finances can sometimes be opaque to would-be participants. By sharing their experiences, modeling their usage, and infusing a brand’s message with their own relatability, influencers can break down barriers.”- Molly Young
(Manager - Product Marketing Strategy, Audible)
Influencer Marketing has transformed the way businesses and brands promote their products and services. Moreover, the Covid-19 pandemic has shifted businesses from the physical to the digital world. With an unparalleled increase in the number of Social Media and Internet users, brands are inclining more towards promotions and advertising on online spaces. Marketers of various businesses have resorted to collaborations with content creators and digital influencers to widen the scope of their respective brand visibility, reach their target audience, and engage them to employ their services or products.
Has Influencer Marketing helped businesses positively? Yes. Several studies and statistics suggest that this new-age reality named Influencer Marketing has been a boon to several brands. A survey says that 81% of marketers have called Influencer Marketing an effective partnership that produces significant results. A report published in 2019 specified that 65% of marketing strategists shared that influencer marketing has positively helped brand awareness, and an additional 50% agreed that this form of marketing is efficient in managing the brand reputation. There is no second thought about the positive impact Influencer Marketing is making in this commercial world.
However, what about the BFSI or the Banking, Financial Services, and Insurance Industry? While it is true that Influencer Marketing is gaining an enormous amount of traction among all industries, financial institutions are typically hesitant to adopt this new form of marketing. In that light, this article discusses in detail the potential of Influencer Marketing to aid the growth and productivity of the financial sector, common challenges faced by the BFSI industry and how the BFSI sector rule out these challenges with the help of finance influencers.
Influencer Marketing And The BFSI Industry.
The financial sector has always been the industry that has stuck to conventional forms of marketing. Print media, TV ads, and digital ads are the most common methods of marketing, followed by the financial sector. However, with increased digitalization and the emergence of millennials or GenZ, the BFSI industry has to resort to advanced and more effective forms of marketing that will not only help them to reach more people but will also help them to build trust among the general public. Consider some facts.
A report says that 92% of millennials or today’s younger generation trust recommendations more than other forms of advertising. Traditional forms of marketing used by the BFSI industry create insecurity among the newest generation of potential customers, making them unsure about whether they can trust their services or not. On the other hand, this younger generation trusts the inputs from influencers who can show how a specific financial institution can be of advantage to them. One should remember that, unlike businesses, the growth of the BFSI industry is largely dependent on how much audiences trust them, and influencer marketing is an excellent way for financial institutions to build their measure of reliability. Apart from this, consider how Influencer Marketing helps to overcome 3 major challenges in the BFSI industry.
How Influencer Marketing Helps To Overcome These 3 BFSI Industry Challenges
If used precisely, Influencer Marketing can be an excellent means to enhance growth in the BFSI sector. Following are the 3 challenges that Influencer Marketing can help the financial sector to overcome:
1. Overcome The High Cost Of Acquisition
Traditional forms of advertising like getting an advertisement on Print media or running an ad on TV have a higher cost of customer acquisition. The cost per ad for a newspaper or a TV channel is very high when compared to the amount of money one has to invest in an influencer. Ultimately, this leads to reduced ROI for financial organizations, which is highly disadvantageous in the long run. On the other hand, influencer marketing is affordable and has a low cost of acquisition. Digital marketing strategies can give significant outcomes without burning a hole in the pocket of financial institutions. In other words, Influencer Marketing is a comparatively low-investment area that can generate quality leads and an attractive ROI.
Traditional forms of advertising fail to convert audiences into customers. Why? A major reason is that television and print have no place for two-way communication. Hence, the BFSI industry cannot mass-target and cannot focus on individual needs. Influencer Marketing empowers them to do so. Influencer marketing gives financial institutions a localized and targeted approach and hence enables them to convert audiences into potential customers. With this new form of marketing, the BFSI industry gets the opportunity to create a finer engagement with its target audience.
2. Overcome Lower Conversions
There are a plethora of financial institutions in the market. The challenge here is to have a unique imprint, while most of the services offered are similar. For a specific financial institution to communicate with customers about the uniqueness and the advantages of the services it provides, influential marketing is an effective way as it provides a two-way communication window. Most importantly, financial institutions will now be able to reach the GenZ and build a platform of trust in their minds. Hence, the BFSI industry can leverage influencer marketing to stand out and earn a trusted name.
The Benefits Of Influencer Marketing For The BFSI Industry
Recently, HDFC Bank collaborated with top social media influencers for the launch of the Millennia Card targeted toward the younger generation. The campaign got a 1 million engagement, and the reach of the campaign was positioned at 40 million.
Confluencr worked with Paytm Money, a SEBI registered investment advisor providing the simplest user platform for investing money, to create awareness about Paytm’s new venture. We collaborated with 18 influencers to run a one-month campaign. The campaign was aimed at educating audiences about IPOs, investments, and ended with an ETF Online Masterclass held by Paytm. The campaign received a 2,993K+ reach, 321+ likes, and 26,946 comments. These numbers stand testimony to the fact that Influencer marketing can be highly beneficial for the BFSI Industry when implemented with skill and perfection.
Apart from this, influencer marketing can help the BFSI sector in the following ways:
- Increased Audience Engagement
- Increased Brand Affinity
- Increased Approachability
- Creation Of Effective Marketing Content
- Build Trust Among Millennials
Influencer Marketing can aid the financial sector, helping it to become more relevant and attractive to audiences. It can help the BFSI industry to reach a wider array of people and get enhanced leads. All that the BFSI industry needs is an effective strategy. So, the financial sector should quickly transition towards digital spaces and start creating an impact.
Confluencr is an award-winning and eminent influencer marketing agency serving a diverse range of brands and businesses. With a striking 15000+ influencer network, we have designed and implemented 500+ brand campaigns for 200+ leading brands across India. We have created and promoted content-driven influencer campaigns for 50+ brands in the financial sector too. We can help you in collaborating with expert influencers for brand campaigns for the BFSI sector. Get in touch with us at [email protected] to learn more.