Did you know that financial firms in Australia had to pay customers a compensation of $3.15 billion in 2021? This issue resulted from offering their clients non-compliant advice.
While financial services firms must improve the customer lifecycle value to compete, they may lack the right tools. This issue then makes it tough to leverage digital marketing and ensure compliance.
Are you wondering how to grow your firm and maintain customers while staying compliant? Read on to discover common problems you may face and how you can solve them with the right MarTech.
Financial Services Companies and Data Consent
Consumer and Data Rights is a crucial issue affecting how you market your financial services. This law allows consumers to control their data and how others use it. For example, you must seek consent from page visitors before using their details for market research.
Further, you must request approval for specific data separately, which can be time-consuming. While asking clients to consent is not hard, sending many requests can feel pushy. As a result, clients may shy away from allowing you to access the details needed to personalise marketing.
Other ways the Consumer and Data Right affects financial services growth are:
- Customers must identify and differentiate consent requests
- You can only use data for the primary reasons customers consent to
- GDPR grants customers the right to request financial services companies erase their data
Another critical issue affecting financial companies' use of data is ensuring safe transfer. If a customer grants consent to their information, you must protect it using APIs.
This aspect means that you should establish verification processes beforehand. Further, you must secure the data with efficient identification methods.
The Effects of Data Consent Laws on Financial Services Growth
Data content laws can affect the efforts to grow your organisation. They may also lower the ability to improve your customer lifecycle value (CLV) in many ways.
For example, you will have limited access to consented contracts. This implies that you won't have enough data to understand your target market. Additionally, you may not accurately assess the customers' preferences and meet their needs.
Digital Marketing & Consent
Digital marketing is an ideal way to grow your financial services company. As the number of internet users increases, you can use the method to boost awareness about your product. Further, it's possible to make more profits from your current customers.
While digital marketing is revolutionary, you may be unable to leverage it due to data consent laws. Lacking enough data about your clients complicates tailoring your ads. Not to mention, you may waste marketing resources promoting something the audience doesn't need or want.
Finding marketing technology to increase customer lifecycle value can solve consent-related issues. Still, it may be tough to select a suitable digital experience platform (DXP). It may also be complex to balance data management and digital marketing.
Solving Data Consent and Digital Marketing Problems With Compliant MarTech
Getting a compliant MarTech is the best way to solve issues related to data consent. You can also boost client acquisition and retention at a lower cost.
The right MarTech will help your company by increasing access to consented contacts. Such a solution will simplify identifying the problems clients have in their businesses. You can also assess the specific issues that may drive them to seek your services.
Based on this data, you may then target people visiting your websites and with this insight you can access the information you need to suggest the right products to the existing customers.
A high volume of consented contacts will simplify assessing customers' needs and tailoring your products.
More ways compliant MarTech will help you grow are:
- Ensuring you offer products to existing customers at the right time
- Providing more details about different market segments
- Simplifying data processing
- Unlocking data analysis tools
- Improving the quality of customer conversations
- Speeding up repetitive tasks
Another way MarTech can help you scale your financial services company is by saving time. These solutions ease content-driven marketing by ensuring you only gather the data clients allow. You can also use them to display consent request banners that are easy to understand.
Utilise All Marketing Resources with Compliant MarTech
Using compliant MarTech will help you save marketing resources. With such tools, you can automate some processes and relieve your team by collecting first-time customer data in real-time.
Digital experience platforms (DXPs) allow you to manage customer engagement. Moreover, you can use them to improve LTV and get more revenue. These tools also help companies offering banking services to encourage customers to use mobile apps.
Adopting compliant MarTech is the best way to utilise digital experience platforms for financial services organisations, so if you would like to talk through your current challenges and understand how implementing the successful MarTech stack can help you increase your customer lifecycle value, please contact us today.
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