The biggest brands, particularly those with global reach, are resonating with consumers to such a degree that they have become a way of life.
In 2021, Apple brand loyalty reached an all-time high of 92%, made possible by a focus on great customer experience, innovation, and ensuring continued customer satisfaction.
The result of continued loyalty among these groups of like-minded people is a collective feeling of identity with the company’s purpose, enabling them to become the biggest brand advocates. Positive word of mouth that then spreads is essentially another form of marketing, and with tech companies building their own set of evangelists, there is scope for banks and fintechs to do the same.
Brand perceptions among younger generations
Younger generations of people favor self-expression, and Generation Z is the first to be comprised solely of digital natives. Part of the reason the lifestyle brand is rapidly expanding among these younger groups is due to the rise of influencer marketing. While TV advertising and shopping defined the pre-social media era, influencers are shaping the buying decisions of the new generation, with the market growing from £1.7bn in 2016 to a staggering projection of 16.4 billion dollars this year.
Therefore, it is not surprising that the world of finance is looking to take advantage of this trend. Brand maven Apple has even ventured into this space by introducing a titanium credit card, marketed as the only one of its kind, allowing consumers to benefit from individuality in their lifestyle. With customer experience front and center in these strategies, how are banks and fintechs venturing into lifestyle banking?
Duplicating the design
The key for banks and fintechs is to focus on a holistic and engaged approach that improves the customer experience, and there are many examples of a customer-centric strategy. Monzo was one of the first app-based challenger banks in the UK looking to disrupt the established market of traditional banks, and the company has a key focus on the requirements of its clients. Its neon and coral colored bank card gives it a distinctive look. The bank’s chief designer, Hugo Cornejo, described this as an intentional move to grab people’s attention and create discussion when it’s handed out for purchases, like in a restaurant, for example.
This strategy reflects a brand that truly understands its desired customer base, and knowing the motivations of consumers will allow banks and fintechs to select the right design elements for their bank cards, as these are the physical symbol of their lifestyle. .
However, this is just one example of how a card can be adapted to a consumer’s lifestyle. The design could reflect exclusivity, innovation or sustainable practices for clients who want to support green initiatives. A metal card, for example, is resistant to fast-paced lifestyles, defined by its longevity and ultra-sleek design. Green cards that are made from 100% recycled, ocean-sourced bioplastics may also resonate with environmentally conscious consumers, which is particularly crucial since a 2020 report found that 73% of Gen Z consumers were willing to pay more for sustainable products. Products Another 2021 study also revealed that nearly 90% of Gen X consumers would be willing to spend 10% more on more sustainable products, compared to just over 34% in 2019.
Communicate effectively to consumers.
Beyond design, communication with consumers is essential, and social media is now a key method of speaking to younger customers in particular. The launch of the American digital bank Step was promoted on TikTok by prominent influencer Charli D’Amelio, and gained the support of celebrities such as rapper Nas. For younger consumers who have no interest in finance, embracing these communication channels and harnessing the power of influencers will help resonate with their interests.
Along with impactful and sustainable bank cards that can also be customized to reflect the consumer’s personal tastes and interests, digital applications will enable effective online experiences as part of a blended phygital approach, where digital and physical experiences come together. This will be critical as more consumers decide when they want a physical or digital touchpoint, with the bank located where the customer is.
Taking a holistic approach
In order to build a lifestyle brand, banks must fully understand their consumers and take steps to maximize the user experience, and the key to doing so is to take a holistic approach. Additionally, they need to leverage data effectively to generate insights about customers and understand their tastes and motivations. Subsequently building a strong image, targeted products and the use of relevant personalities will put banks and fintechs in much stronger positions to engage customers and ensure their loyalty in the future.
Successful banks finally understand what their customers aspire to. They speak their language, reach them through their preferred channels, and create products specifically for them. The result is an established brand identity that is instantly memorable and highly resonant with the target market.
About the Author
Mikko Kähkönen is Global Director of Card Products at Giesecke+Devrient. Giesecke+Devrient is a global company providing security technologies in both the physical and digital worlds. Every day billions of people benefit from G+D innovations in their personal and business lives. With around 11,600 employees in 32 countries, we develop, manufacture and distribute products and solutions for the protection of payment processes, identities, connectivity and data.
Featured Image: ©Ipopba
Source: news.google.com