Innovative companies that combine finance and technology are rapidly growing. Companies like Robinhood that offer commission-free trading, SoFi that facilitates loans, and Chime that provides mobile-only banking are all making waves.
Why? Not just because they’re experiencing an astonishing 72% growth due to touchless payment methods in a COVID-19 world, but because they’ve deployed creative location-based marketing techniques.
What is location-based marketing?
Location-based marketing gives brands the ability to tailor marketing messages to customers based on their location. This kind of individualised marketing lets brands connect on a granular level and engage one-on-one with customers.
What are examples of location-based marketing in action?
A lot of location-based marketing campaigns deploy geofences. A geofence is a virtual boundary or “fence” that’s set up around a specific location. When a customer crosses the boundary, they receive pre-determined messages, coupons, or access to interactive content like an in-store map.
Uber, the popular ride-sharing app, sets up a geofence at airports. Customers with the Uber app receive links to get a ride or see how many drivers are available in the area for immediate pick-up.
Grocery stores are using geofencing to improve their curb-side pickup orders. When a customer enters the fence, employees are notified so the order can be brought out quickly.
How can Fintech brands use location-based marketing?
Fintech companies are predominantly digital-first companies that engage customers through mobile apps and websites. So, how can brands like this use location-based marketing to attract and retain customers? It’s all about getting creative.
Here are some ways Fintech companies can deploy location-based marketing to boost engagement.
- 1. Tailor services to customers based on where they live
Knowing a customer’s location can provide insight into needed services. For example, a personal finance company could provide exclusive content or special offers to people living in cities with the highest unemployment rates.
A Fintech company could also target customers who live in the area and provide special services like waiving all fees for checking accounts or providing easy access to low-interest loans.
- 2. Help customers find ATMs or branches
While many Fintech companies have a strong digital presence, many have brick-and-mortar branches. Location-based marketing can help customers find branches that are closest to them.
The same concept works for locating an ATM. When a customer wants to get some cash, for example, they can pull out their phone, check their app, and get directions from their location to the nearest ATM.
- 3. Set up a geofence for events
Fintech companies can set up a geofence during special events. For example, if the
company sponsors an event, participates in a trade show, or makes a presentation to a client, a geofence can be created to deliver tailored messages to those in attendance.
Let’s say a digital bank is sponsoring a money management seminar at a college. A geofence can be created around the campus. When students enter the field, messages can remind students about the seminar. When students leave the building, a message containing a special offer can be sent to attendees.
- 4. Combine customer data with a targeted offer
Consider combining customer data that you’ve collected with a special, tailored offer. For example, FinTech brands may want to promote its school loan refinancing program. The company has a high conversion rate in community colleges that are located in urban settings in the southern U.S.
Armed with this data, the company can create geofences for specific community colleges that are located in cities like Atlanta, Jacksonville, Miami, and New Orleans. When students enter the geofences, they receive in-app messages about refinancing their student loans.
What are the benefits of location-based marketing for FinTech brands?
The benefits of using location-based marketing are plentiful, but here’s a quick look at why more Fintech brands are trying out the technique.
A personalised customer experience
There are dozens of brands competing for your customer’s attention. To stand out, brands have to connect on a personal level. 72% of consumers say they will only engage with content that’s relevant to them.
A lift in revenue
There are numerous studies that show personalised campaigns increase revenue. McKinsey & Company research suggests personalisation can boost revenue by 5-15%.
A useful tool to encourage repeat visits
Location-based marketing can provide useful information to customers. Customers who can rely on an app to find the nearest ATM, for example, will use that tool again and again. A customer’s reliance on your app is a great way to increase conversions.
It’s easy to use
The concept of setting up a geofence may sound complicated, but there are mobile marketing companies like CleverTap that make it easy to create geofences, target customers, and create personalised messages. Using a simple dashboard, brands can set up geofences and trigger real-time messages to customers as they enter and exit the boundary.
The Future for Fintech
Fintech companies are bucking traditional trends. They’re proving that people can bank without going to a physical location, or trade stocks without the help of a Wall Street veteran. It only makes sense that its marketing tactics would buck traditions as well. Location-based marketing is the next step.