Why Your Financial Institution Should Be Using Influencer Marketing in 2023
In today’s digital age, influencer marketing has emerged as a powerful tool for your business to reach its target audience and drive sales. The industry is expected to grow to $21.1B by the end of 2023, according to a recent survey by IMH, with 52% of brands sponsoring influencers as a top marketing strategy. While it may seem like a tool better suited for a lifestyle brand or consumer goods, financial institutions can leverage the power of influencer marketing to build trust, increase sales and connect with customers on a more personal level. Your current marketing agency can help find and collaborate with influencers to create content that showcases your products and services. Here are the top 3 reasons you should add influencer marketing to your plan in 2023:
1. Gain Social Proof
Social proof is when potential customers look for reviews, recommendations and ways that others have used a product before they make purchasing decisions. Since people often view banks and credit unions as faceless entities focused solely on transactions, gaining trust is a crucial part of any marketing campaign. Building social proof with a chosen influencer reinforces the decisions being made by new customers. In 2022, HubSpot found that 72% of Gen Z and Millennials follow influencers on social media, and 50% of Millennials trust product recommendations from them. Partnering with influencers can effectively communicate the value propositions and benefits of your financial products and services. These authentic endorsements are an effective way to gain social proof with potential customers
2. Expand Your Audience
Effective campaigns rely on expanding your audience, and influencer marketing excels in this aspect. Influencers have a niche following, consisting of individuals who share similar interests or aspirations, but who may not be aware of your financial institution. Influencer marketing is most effective on Instagram, followed by YouTube and FaceBook. Pairing an influencer with your marketing agency to create content that educates about personal finance will showcase your financial institution as a trusted resource. By strategically selecting influencers, you can reach your target audience more effectively, ensuring that your message resonates with the right people and converts views into actions.
3. Increase Sales
The ultimate benefit of influencer marketing is increased sales. By driving traffic to your website and reaching an audience with a heightened interest in your services, influencer marketing impacts sales. Implementing trackable links, promo codes, or unique landing pages for influencer-driven content allows you to directly attribute conversions and customer acquisition to influencer campaigns. Additionally, feedback from influencers and their followers can provide valuable insights into the effectiveness of the partnership, allowing you to refine your strategies for future campaigns. On average, businesses generate $18 for every $1 invested in influencer marketing.
As the role of influencers becomes more vital to the marketing landscape, the opportunity for financial institutions to engage with potential customers who seek personalized experiences is limitless. If you approach influencer marketing strategically, you can unlock the potential to connect with your audience, drive growth, and solidify your position in an increasingly competitive financial market.
Looking to increase engagement with your community through influencer marketing? Strategis is a full-service agency developing strategies for community banks and credit unions proven to increase the (ROI) through various methods. Book a 30-minute introduction call with us, or contact us directly!
