The financial services & fintech industry has a wide range of different products catered to an even wider range of target audiences. How can you effectively target your potential customers and stand out from the rest? In this current era, key opinion leader (KOL) / influencer marketing is arguably the most powerful marketing channel. Some may say despite its effectiveness, a failed campaign is extremely costly and accurate selection of key opinion leaders or influencers is difficult due to difficulty in predicting results. But, what if there's an alternate way to run your campaigns addressing these issues?
So, why Influencer Marketing or Key Opinion Leader Marketing?
The financial services and FinTech industry have never been known to have strong social media presence. Financial services are typically very personalised services and it is impossible for FIs or FinTech firms to communicate their products or services effectively through online means, apart from their own website. The returns on investment (ROI) for online marketing is not at the most optimal. In addition, most FIs are strictly monitored by regulatory bodies and there are highly restrictive advertising laws preventing any form of creative advertising/marketing. However, influencer marketing is the breakthrough method for Financial services/FinTech firms to engage in word-of-mouth marketing, spreading the awareness of their products/services catering to the highly varied segments of consumers. Why is influencer marketing a game changer for this industry?
Influencer marketing provides the word of mouth effect increasing the level of trust as well as awareness for your product/service. In the financial services industry, trust is a highly valued currency. Even without fully understanding the depth of your product/services, viewers will instinctively trust your brand more upon looking at one of their friends promoting you. While it may not reap instant results, it may tilt consumers in your favour if compared to a rival offering similar products/services. Given the size of the industry, the differences accumulated over time will prove to be significant.
How to run successful KOL & Influencer marketing campaigns in the Financial services & FinTech industry?
1. Understanding your customers
To fully capitalise on the targeting capability of KOL / influencer marketing, you must first understand the demographics of your usual clients. If you do not have advanced analytics tools, that's not an issue. Simply make some effort to take note of these few non-sensitive details (non-exhaustive list, please feel free to take in more details if you can):
- Age group
- Job Function / Occupation
- Job Seniority
In the financial services & fintech industry, understanding your clients' income level as well as the the industries more likely to be attracted to your product is essential. When you select a KOL / influencer, get one with a demographic suitable for you. Take for example, if you find most clients to be from Small Medium Enterprises (SMEs), you should engage a KOL / influencer who has an outreach to SME bosses who can make decisions for the company. This way, it allows you to gain outreach to consumers with a higher likelihood of using your product/service, as compared to a KOL / influencer with an outreach to Multi-National Corporates, for instance.
2. Tell a story
Many financial services/fintech products are relatively complex topics which require a level of understanding before decisions can be made. In this case, having real people tell real stories about your firm's product & services helps make you less intimidating. On the contrary, audiences may find it more relatable, should they associate themselves to be in similar circumstances as your influencer. Key messages about your product/service gets communicated with relative ease.
3. Value-based Key Opinion Leader & Influencer marketing
It is worth noting that compared to traditional ads, costs of a failed campaign is significantly higher. Take for example, a facebook ad, it can be stopped at any time, should you decide the ad is not doing well. Unfortunately, for an influencer marketing campaign, you drop money upfront, which cannot be stopped/paused even if campaign results aren't going well. Fortunately, modern technologies have enabled Marzze to create a free-to-use platform that allows you to find KOL / influencers and run hybrid performance based KOL / influencer marketing campaigns. It is the world's first of its kind world's 1st automated campaign management application enabling a multi-tier fee structure that can be customised according to your business needs:
Total Fees = Token Fee + [pay-per-sale / pay-per-lead / pay-per-action / pay-per-engagement]
With this model, it makes more financial sense for you to engage a KOL / influencer. On top of avoiding high upfront costs, you will instead pay based on actual value delivered to you (i.e. % of sales value or no. of leads generated). You are more assured that your marketing budget is being spent on delivering actual results
However, in this industry...
Influencer marketing must be used with caution, more so for tightly regulated aspects of the financial services industry such as investment recommendations. Always do your research to find out whether the key message brought across through your influencer is compliant with your local advertising laws. Our recommendation would be to focus your influencer's message on your brand. Avoid advertising one particular product/service - finding the right audience would be akin to searching for a needle in a haystick. Rather, build the image of trust and reliability among the audience. This way, audiences with real needs for financial services will search for you and bring themselves to the respective service they require.
Making a decision
Key opinion leader & influencer marketing is arguably one of the most powerful modern marketing channels right now. There are already many companies who have grown from a small business to a $100million dollar company within a few years, simply by capitalising on KOL / influencer marketing. It is the perfect opportunity for businesses to capitalise on the proven strengths of KOL / influencer marketing. If you're new to KOL / influencer marketing or would like to improve your KOL / influencer marketing strategy, we're specialists who can help you adopt KOL / influencer marketing successfully, together with lifetime access to our platform you can use as a SaaS tool managing and automating all your future value-based KOL / influencer campaigns.