- Approaches to influencer marketing for financial services brands
- Published 11/06/2023
- 8 min Read
- Written by Julia Shandrokha
Table of contents
In today’s interconnected digital world, influencer marketing has emerged as a highly impactful strategy for businesses looking to communicate their value proposition in a more authentic, relatable, and engaging manner. With the advent and widespread adoption of social media platforms, influencers – individuals who have cultivated an audience and earned their trust – have become pivotal in shaping consumer behaviors and decisions.
Influencer marketing is not confined to any single industry. Whether it’s lifestyle, fashion, travel, or even food, influencers are making their mark. Yet, one sector that is uniquely positioned to leverage the power of influencer marketing is the financial services industry.
Financial services brands (and others from BFSI) often operate in an environment of skepticism and uncertainty. Consumers frequently approach financial decisions with caution, wary of the complex jargon, stringent regulations, and potential risks associated with financial transactions or investments. Consequently, building trust is an essential component of any financial brand’s marketing strategy. This is where influencer marketing becomes highly relevant.
Influencers, with their authentic communication and strong bond with their audience, have the potential to significantly mitigate consumer skepticism. They can humanize financial brands, demystify complex financial concepts, and provide relatable experiences that resonate with consumers, fostering a sense of trust. In an industry where trust can significantly influence consumer decision-making, the value of influencer marketing becomes increasingly clear.
In this article, the Famesters influencer marketing agency will help you delve deeper into how your financial brand can adopt and benefit from strategic influencer marketing, examining successful approaches and highlighting critical considerations to maximize efficacy and impact.
THE VALUE OF INFLUENCER MARKETING FOR BFSI
In an age characterized by information overload, data indicates that traditional advertising is losing its effectiveness, with consumers placing more trust in word-of-mouth recommendations from figures they respect and identify with. Recent studies show that 92% of consumers trust influencers more than advertisements or traditional celebrity endorsements. This shift in consumer behavior underscores the value and impact of influencer marketing in today’s digital economy. This also results in high-quality traffic from influencer marketing – 71% of experts agree with this.
Influencer marketing, once a novelty, has now become a mainstream marketing approach in various industries. From fashion brands collaborating with lifestyle influencers to tech companies partnering with tech gurus, influencer marketing has proven to be a game-changer. According to a report by BuzzGuru, the influencer marketing industry is set to reach $17.4 billion in 2023, reflecting its tremendous growth and impact.
The power of influencer marketing lies in its authenticity and relatability. Influencers have the unique ability to create content that resonates with their audience, fostering an emotional connection that can translate into consumer trust and loyalty. When influencers share their personal experiences with a product or service, their audience is more likely to perceive the endorsement as genuine and trustworthy.
In the financial services sector, the potential of influencer marketing is vast and largely untapped. Financial decisions, often seen as complex and intimidating, can become more accessible when explained by a trusted influencer. The influencer can play a critical role in breaking down complex financial jargon, sharing relatable experiences, and building consumer confidence in a brand’s financial products or services.
Moreover, by leveraging influencer marketing, financial brands can reach and engage with key demographics that might otherwise be difficult to connect with through traditional marketing channels. Particularly, younger audiences, who are typically skeptical of traditional financial institutions but highly engaged with influencers on social media platforms.
In a nutshell, influencer marketing presents a unique opportunity for financial brands to enhance their visibility, improve their brand perception, and connect with their audience on a more personal and engaging level.
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ANALYZING KEY DEMOGRAPHICS
Millennials and Gen Z, in particular, are two demographics that financial brands should pay close attention to. They are the digital natives, the ones who’ve grown up with social media and are most influenced by it.
Millennials, who are currently in their late 20s to early 40s, are a prime target for financial brands as they’re at a life stage where significant financial decisions are made – such as buying a house or planning for retirement. Gen Z, on the other hand, though younger, represents the future consumers. Also, zoomers are those who may need financial assistance to get their university degrees. Engaging with them early on can help establish long-term relationships.
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Both these generations value authenticity, transparency, and personalized experiences, which are the hallmarks of successful influencer marketing. Therefore, understanding their preferences and behaviors on social media platforms can significantly enhance the effectiveness of an influencer marketing strategy for financial brands.
INFLUENCER MARKETING STRATEGIES FOR FINANCIAL SERVICES BRANDS
Financial institutions aiming to leverage influencer marketing should consider three primary approaches: driving awareness, driving web traffic, and driving conversions. Each of these plays a unique role in the consumer journey, contributing to a holistic digital marketing strategy.
DRIVE AWARENESS
In the awareness phase, the goal is to enhance brand visibility and recognition. Here, influencers act as the medium, communicating your brand message to their large follower base. This type of strategy effectively amplifies brand reach, allowing financial services to tap into markets that might otherwise be inaccessible.
- Social media posts. Influencers can create unique, engaging content on various social media platforms, highlighting the brand and its offerings. Whether it’s Instagram, Twitter, Facebook, or Pinterest, influencers weave the brand story into their regular posts, providing an organic and authentic touch to brand promotion.
- Long-form blog posts. Long-form content, such as blogs, provide a wealth of information about the brand, its services, or related topics. It can be an excellent platform for evergreen content, maximizing search-engine optimization (SEO) for the brand. Such content not only sparks immediate engagement but also provides searchable, organic content that search engines favor.
- Videos. Videos allow influencers to provide detailed, visual narratives about a brand or its services. They can offer personal experiences, reviews, tutorials, or other engaging content forms. As with long-form blog posts, videos can also have a lasting impact, reaching new audiences over time.
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DRIVE WEB TRAFFIC
Another primary goal of influencer marketing in financial services is to direct potential customers from the influencer’s content to the brand’s site or a specific landing page. This step represents a deeper level of engagement, as the consumer actively seeks more information about the brand, its services, or a particular offer.
- Linking and directing. Influencers can include direct links in their social media posts, blogs, or video descriptions to guide viewers to further resources. They can also verbally direct their followers to check out these resources during a video or a live stream.
- Dedicated landing pages. Brands can design specific landing pages tailored to the audience coming from an influencer’s platform. These pages can provide detailed information about a product, service, or event that the influencer is promoting, leading to more substantial engagement with the brand.
DRIVE CONVERSIONS
Influencers play a crucial role in driving conversions. Through their genuine relationship with followers, they inspire trust and credibility, nudging their audience towards making a purchase or signing up for a service.
- Promotional codes. Brands can equip influencers with unique promotional codes, offering their followers additional savings or exclusive deals. This tactic incentivizes the audience to take immediate action, effectively driving conversions.
- Paid social strategies. Amplifying influencer content through paid social media promotions can help reach a larger audience and stimulate additional conversions. With the influencer’s permission, brands can use their content to create a variety of ad sets optimized for different purposes.
- Detailed audience insights. Understanding the audience’s behavior and preferences can be instrumental in driving conversions. By pairing the brand with influencers whose followers match the brand’s target demographics, influencer marketing allows financial services brands to reach an audience that is more likely to be interested in their offerings.
When leveraged strategically, influencer marketing can play a critical role in the marketing mix for financial services brands. From raising awareness to driving web traffic and conversions, influencers can effectively establish trust and confidence in financial services, making them indispensable partners in the financial industry’s digital marketing landscape.
RISKS AND CONSIDERATIONS
Influencer marketing, despite its many benefits, comes with its unique set of challenges and risks, particularly in the highly-regulated financial sector. Understanding these risks and considering the strategies to mitigate them is crucial for brands seeking to employ influencer marketing effectively.
REGULATORY CONSIDERATIONS
When we are talking about the USA financial services brands, institutions must adhere to strict regulatory standards set by bodies like the Federal Trade Commission (FTC) and the Financial Industry Regulatory Authority (FINRA). These standards ensure transparency and honesty in all marketing and advertising endeavors, including influencer partnerships.
- FTC guidelines. The FTC requires influencers to disclose their relationships with brands clearly and conspicuously whenever they make endorsements. This transparency is vital to maintain consumer trust and to avoid misleading advertisements.
- FINRA oversight. For financial institutions, FINRA rules apply to all communications with the public, including social media and influencer marketing. Institutions must ensure that their content is fair, balanced, and not misleading. Any financial advice provided should be general and not specific to individual situations to avoid regulatory complications.
AUTHENTICITY AND TRUST
Influencer marketing relies heavily on the authenticity of the influencer and the trust they’ve built with their audience. Any perceived insincerity can result in loss of trust and damage to the brand’s reputation.
- Choosing the right influencers. Brands must carefully vet influencers to ensure they align with their values and are likely to be perceived as credible by their target audience. Influencers should have a genuine connection with their followers and a track record of honest and transparent endorsements.
- Creating authentic content. Influencers should incorporate the brand’s messaging organically into their content, ensuring it aligns seamlessly with their regular posts. Forced or overly promotional content can seem inauthentic and may lead to audience disengagement.
MITIGATING RISKS
- Clear contracts. Brands should have clear and comprehensive contracts with influencers outlining all expectations, responsibilities, and legal obligations. This includes FTC disclosures, adherence to FINRA rules, and the parameters for content creation and promotion.
- Continuous monitoring. Regularly monitor and review the influencer’s content to ensure compliance with all guidelines and to gauge audience response.
While influencer marketing in the financial services sector offers a wealth of opportunities, it is not without its challenges. Navigating these risks and considerations carefully is essential to reap the benefits of influencer marketing while maintaining regulatory compliance and audience trust.
WRAPPING UP
Influencer marketing has undeniably become a compelling and effective approach for brands across various sectors, and the financial services industry is no exception. This innovative marketing strategy has the potential to bridge the gap between financial institutions and their audience, particularly with younger, more digitally-savvy consumers who increasingly look to influencers for information, recommendations, and inspiration.
Leveraging influencers can transform the perception of financial brands, making them more approachable and relatable. Influencers can humanize these brands and bring them closer to their audience, breaking down complex financial concepts into more understandable, relatable content. This strategy can drive brand awareness, increase web traffic, and lead to conversions, ultimately enhancing the customer’s journey and engagement with the brand.
In the rapidly evolving digital age, influencer marketing can serve as a powerful tool for financial brands to stay relevant and connected with their audience. By partnering with the right influencers and aligning their messaging with the interests and needs of their target demographic, financial institutions can position themselves as more than just a service provider – they can become a trusted ally in their customers’ financial journeys.
Influencer marketing holds enormous promise for the financial services industry. It offers a fresh and exciting way for these institutions to connect with a new generation of customers, foster trust, and ultimately drive growth in an increasingly digital world.
To get assistance in launching an influencer marketing campaign for your financial services brand, contact Famesters. We are an influencer marketing agency with 6+ years of experience promoting financial brands with the help of influential content creators on social media. We can act like your consultants or manage the entire campaign for you – from the research to final reporting!
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