Banks failing to engage mobile users with marketing campaignsby
Mobile banking is on the rise in the UK, according to Mobile Industry Review which states mobile now accounts for almost £1 billion worth of transactions each day totalling £6.4 billion a week – up from £5.8 billion last year.
In contrast, however, the Office of National Statistics (ONS) reported in August that just 53% of the UK population used Internet or mobile banking in 2014, and new research from BuzzCity states that part of the reason the adoption rate isn’t higher is a “skewed approach to communications” on the behalf of the banks’ marketing campaigns.
The research states that despite the medium being promoted, much of banking’s efforts to engage customers with mobile is done via TV promotion, which accounts for roughly 42% of all marketing around the topic.
Only 16% of marketing spend was placed on mobile advertising, a decrease of 10% from 2013 and less is spent on radio and newspaper – 9% respectively.
Although nearly all banks provide some form of mobile banking service, 15% of consumers don’t believe that the facility is available to them, and a third (35%) have yet to use their mobiles for banking services with a third again ‘planning to do so’.
“This skewed approach that many banks place on TV advertising is failing to engage their own customers” says Dr. KF Lai, founder and CEO at BuzzCity.
“By focusing all efforts on just one channel of communication and not the actual devices that their customers are using every minute of every day the banks are clearly missing opportunities. This is integral to building relationships and trust with their audiences.”
The figures are an anomaly given the desire among retail bankers to increase the use of their mobile and desktop apps.
A recent report from ComputerWeekly states that Barclays is set to offer customers up to £180 a year for banking online and using its mobile banking app.
Launching on 20 April 2015, Barclays Blue Rewards costs customers £3 per month and requires customers to use their online and mobile facilities, but in return they receive cash benefits, regardless of how much money they have with Barclays. Customers can earn up to £15 cash rewards every month and also receive cashback through registered suppliers.
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.