Irina Jakovleva
Irina Jakovleva 18 September 2017

Customer Journey Mapping: A Real-Life Approach to Your Digital Marketing Strategy

As financial services and insurance (FSI) companies strive to deliver the seamless multi-channel customer experience, the traditional marketing model has been radically reimagined. Innovative institutions are showing how cross-functional teams focusing on the customer journey can work to develop a single view of the customer – an approach that can bring tangible rewards. Yet research shows that large institutions still have some way to go in maximising the return on their investment in this area.

Integrating the banking customer experience

The predominance of mobile and digital media continues to drive transformation in the FSI sector, as C-level executives and marketing teams respond to the needs of their biggest demographic market: the millennial generation.

This is a market of consumers who are accustomed to having a vast array of online and offline options for researching and buying new products and services, 24/7. Millennials are increasingly expecting the same seamless customer experience from their banks and insurers as they do from the digital pioneers in other sectors.

Traditionally fast followers rather than early adopters when it comes to new technologies, FSI companies have also seen other industries encroach on their territory by offering financial services, such as payment processing and short-term loans as part of their buying experience.

FSI executives and marketing teams are therefore under pressure to integrate the banking experience across physical and virtual channels, not only to cut costs, but to exploit sales opportunities and avoid losing market share to new challengers.

A radical rethink of the traditional marketing model

As a recent McKinsey report explains, most banks’ marketing organisations used to be geared toward relatively slow-paced campaigns, focused on pushing single products at a time across a range of channels.

But this traditional marketing model is being turned on its head. Now, banks are shifting investment to “always-on” marketing programs, in which they engage with individual customers at every touchpoint along the decision journey. These marketing programmes are typically conducted according to a test-and-learn approach that gauges an individual customer’s specific needs in real-time.

Under this approach, it is the customer decision journey, rather than an individual transaction, that drives the marketing strategy. This is already being implemented, according to a banking sector briefing produced last year by KPMG Nunwood. This includes the example of Kiwibank, (a startup created by the New Zealand post office) who has made this kind of customer journey focused strategy the basis for its entire organisational structure.

A cross-functional organisation geared toward the customer journey

Kiwibank is not organised according to traditional hierarchical and divisional lines. Instead, it is a cross-functional organisation encompassing the core capabilities of the three Ds:

  • Discovery. Analysing data from a huge number of customers.
  • Design. Modeling how their life journeys might play out for future customers.
  • Delivery. Providing the right offering, at the right time, in the right way.

Untapped sales and revenue potential among large organisations

Despite progress in this sector, Econsultancy’s recent Multichannel Reality report highlights that companies in the FSI industry still find understanding the customer journey a challenge. Only a third of respondents to the survey said that their organisation had managed to achieve a single view of the customer through journey mapping.

Brian Manasuma, Research Director at IT research and advisory company Gartner, believes this is because today’s sheer number of customer engagement channels makes it far more difficult to keep track. “It has become very difficult to establish how all our different points of contact are perceived—and I’m not even sure the customer knows.”

Achieving a single view of the customer may also prove more challenging for large organisations than for their smaller counterparts. In this case, it makes sense for larger companies to work with a partner on the three Ds, for instance by helping to put in place the right technological infrastructure and by assisting with the creation, management, and localisation of marketing content.

Embracing journey management in this way has the potential to yield tangible benefits for companies. A report by the Aberdeen Group suggests that focusing on the entire customer journey brings a 50% greater return on marketing investment, nearly 25% more positive social media mentions, more than 2.5 times greater revenue from customer referrals, and, crucially, 55% greater cross-sell and upsell revenue than competitors.

Key takeaways

  • In response to evolving customer demands and competition from challengers outside the industry, FSIs are moving toward integrating the customer experience.
  • This is turning the traditional, slow-paced campaign-driven marketing model on its head. The need for always-on marketing requires an organisational rethink.
  • Providers such as Kiwibank are pioneering flat, cross-functional structures to implement new journey-focused strategies.
  • Larger banks and insurers still have some way to go, but choosing the right partner is a good first step.
Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
Digital Marketing Vs. Traditional Marketing: Which One Is Better?

Digital Marketing Vs. Traditional Marketing: Which One Is Better?

What's the difference between digital marketing and traditional marketing, and why does it matter? The answers may surprise you.

Julie Cave
Julie Cave 14 July 2016
Read more
Top 10 B2B Platforms to Help your Business Grow Worldwide

Top 10 B2B Platforms to Help your Business Grow Worldwide

Although the trend of a Business to Business portal is not new but the evolution of technology has indeed changed the way they function. Additional digital trading features and branding has taken the place of traditional outreach methods to get in touch with targeted buyers or sellers.Here are some of the best and fastest growing global B2B platforms that are helping thousands of businesses in the world to grow and reach their international and local clients.

Salman Sharif
Salman Sharif 7 July 2017
Read more
4 Important Digital Marketing Channels You Should Know About

4 Important Digital Marketing Channels You Should Know About

It goes without saying that a company can't do without digital marketing in today's world.

Digital Doughnut Contributor
Digital Doughnut Contributor 5 November 2014
Read more
Collection Of The Best Email Testing Tools Online

Collection Of The Best Email Testing Tools Online

Don’t be afraid of email testing. There are many free or freemium tools online that can help you with testing your SPAM score, deliverability and even the rendering of your email. We feature 30 email testing tools in this article. Check out the complete list!

Roland Pokornyik
Roland Pokornyik 31 October 2016
Read more
How does social engagement contribute to the overall customer experience? New research!

How does social engagement contribute to the overall customer experience? New research!

It is now widely accepted that companies offering an excellent customer experience (CX) are more likely than their peers to deliver against their commercial objectives. New research from Digital Doughnut and Hootsuite is dedicated to looking at how companies are using social media channels in the context of their broader CX strategy.

Linus Gregoriadis
Linus Gregoriadis 16 January 2018
Read more