Standing out from the competition with your ATMs

As consumer demand has shifted to focus on experience, personalization is taking center stage. Customers want to feel connected to the brands they are loyal to andlike these brands really know them. They want the businesses they interact with to know their name, purchasing history, and more so they receive relevant content, products and services.

And if you think about it, personalization is no different than the types of individualized interactions we all appreciate, like when we dine out, for example. When you walk into your favorite restaurant, it’s great to be greeted by name, seated in your preferred spot with a view across the lake and then asked if you’ll be having your favorite glass of pinot. 

And this personalization in marketing works too. According to McKinsey, personalization leaders have found proven ways to drive 5-15 percent increases in revenue and 10-30 percent increases in marketing-spend efficiency. This was done predominantly by deploying product recommendations and triggered communications within singular channels. So applying that to our dining example, you’ll probably ask for a bottle rather than just a glass of that pinot.

Many banking consumers show strong loyalty, but that shouldn’t lead to complacency. Continuously trying to improve the customer experience and personalize interactions—including marketing—are still key, particularly as digital interactions have dramatically increased in the last year or so. In fact, many banking customers manage their accounts almost exclusively via digital channels. And Deloitte argues that hyper-personalization is imperative for financial institutions (FIs) by enabling them to differentiate their brand, boost revenues, and improve financial inclusion.

In some way, those in the financial sector are more fortunate than other businesses since FI customers need to interact regularly as they manage their money. And there’s plenty of personal data to draw upon too. So, developing targeted marketing is an important step today that makes good sense in the FI industry. 

With consumers regularly using ATMs, FIs have a built-in opportunity to drive marketing messages directly on the screen. And a marketing program integrated with your ATM business channels can show that you know what your customers need now or what they might need next. Just as important, digital personalization helps you stand out from the competition.

So, how can you have a more human approach to help your FI retain customer loyalty in a new era of mass digitalization? How do you cross that divide between efficient digital interactions and the natural human desire to connect?

The answer, of course, is personalization. With targeted ATM marketing based on your individual customer, your FI can cross the digital divide simply by being there with your customers at the ATM via personalized messages, offers and promotions. Using your ATM screens in this way helps you:

• Decrease customer churn by offering customers relevant promotions
• Increase your FI’s overall relevancy to customers, helping to enhance existing programs dedicated to nurturing long-term relationships
• Improve customer satisfaction by making them feel like you know and understand their needs and preferences—sometimes before they do
• Boost transaction value and conversion rates by presenting the right offers to your ATM customers at the right time based on data and predictive insights
• Increase revenue with a new marketing channel that puts loan offers or other promotions right in front of customers as they are managing their cash
• Gain cost-efficiencies by adding a marketing channel that has a built-in infrastructure to reach your customers and your potential customers—they actually come to you via your ATM network

Related: Delivering personalized experiences in a digital-first world

There are different levels of sophistication when it comes to marketing at the ATM, and success also depends on the amount of data you have to draw upon.

Segmented marketing: This approach doesn’t delve into the personal profile of your customers but enables you to run certain campaigns around a time of day, holiday, or in certain locations. You can even target campaigns at certain user groups or BIN numbers unique to your FI. That means you can target your competitions’ customers with specific messaging. For instance, if your FI has reduced your interest rate offer on a loan, you can show your customers an ad with the new low rate. It’s extremely powerful to speak to your competitors’ customers in this way and target appropriate messages that will resonate, winning them over to your side.

Targeted marketing: Even more targeted marketing based on your customer’s profile enables you to send relevant messages when using the ATM. From targeting mortgage loan offers at a 30-something demographic, to pensions to the over 50s, or holiday insurance during summer months, you’re using your CRM data to target customers with messages that are pertinent to them exactly where they are in life.

Preferences: While not exactly marketing, enabling customized preferences shows your customers that you understand them and their transaction history. That way, when they come to your ATM, it’s configured for them. Whether you’re offering them a choice of language, fast-cash options, or other preferred transactions based on their history, you’re making it easier for your customer to engage. And it’s also making their transactions quicker, providing a better experience for valued customers (and freeing up the ATM for the next transaction even faster).

eReceipts: A more personal way to acknowledge transactions rather than a random piece of paper sitting in your wallet. eReceipts enable you to send additional messaging or marketing in an email while providing that important transaction record.

In the world of effective marketing, we must seek “impressions” and studies are often conducted to determine the viability of newspaper, TV, Internet and radio ad campaigns. These media types used to be highly effective ways to reach consumers, but those days are gone. Consumers don’t look for ads in traditional media unless they need something specific as they’re often multi-tasking, looking at their phone during a TV ad break, for instance. That means they offer businesses little chance to gain an impression and execute an effective business-building strategy.

ATMs are a different story. By the very nature of the ATM experience, consumers are proactively engaged with your FI at these machines. They are highly attentive as they conduct their ATM transaction, even if it’s just for a few minutes. Research has even validated that consumer focus at an ATM is exceptionally high. Simply put, they’re fixated on that screen.

So, this unique, focused and connected customer experience makes personalized marketing at these machines exceptionally powerful and effective.

Here are some practical recommendations for leveraging the power of the ATM display for personalized marketing:

• Gauge your ATM marketing efforts: Unlike more traditional advertising channels, ATM ad-screens have favorable impression rates, usually much better than expected. Marketers interviewing consumers after they use an ATM ask simple questions: “Did you see an ad? Do you recall the product being advertised?” The answers reveal a great deal. Over 60 percent  of ATM users retain the information and clearly remember what they saw.
• Adapt your marketing based on customer feedback: The key to success with ATM marketing is quickly adapting your ATM marketing program based on a customer’s response. If they show no interest in the message they receive, these ads need to be phased out for the next time they use your ATM. Having several messages rotating for each segment of customer ensures they see something different that keeps their interest engaged.
• Leverage real-time data analytics: With real-time analytics, your FI can get intel on what messaging is working and what is not, further allowing your marketing team to evolve and deliver more effective marketing and drive successful outcomes.
• Offer them something new with cross-selling promotions: Data-driven marketing at the ATM means that your organization can build further connections with your customers. Show them relevant products and services that they might not know about, helping to deliver extra value and foster even stronger business relationships.
• Give ATM customers rich, personalized experiences: From colorful smartphone or desktop operating systems to sleek automobile dashboards, today’s consumers are accustomed to and demand a user-friendly interface that’s a pleasure to view and use. That’s why your ATM software platform should also deliver a rich, multi-touch graphical experience, ideally with video animation. Your personalized marketing message will have an even greater impact with a bright, vibrant, multi-media display and highly intuitive interface.

Support your local communities: The ATM also provides a communication channel to highlight local businesses, local events or FI sponsorships helping to showcase your CSR activities to your customers.

So, with ATM marketing being such a potentially powerful tool, is your financial institution taking advantage of the unique opportunity that may be undiscovered by many of your competitors? Initiating and then maximizing these customer engagements and personalized marketing opportunities to existing—and even prospective customers—can help your FI stand out in an increasingly competitive marketplace.