 "Breaking away from the pack")
Think back to some of the most memorable ad campaigns by banks and insurance companies in recent months and two things will stand out: one, a growing mention of social causes and two, special offerings that make it easier and more convenient for customers to experience the brand digitally. And in most cases, most of the ads and promotions would have been online. Financial services brands are topping the brand tables across a number of reports and surveys in 2016, even though their marketing budgets are far more conservative than other sectors. Experts believe heightened focus on customer experience and growing reliance on cause marketing and digital media is paying off.
| A-LISTERS |
|
According to BrandZ Top 50, a list of the most valued Indian brands, the financial sector contributed 38 per cent to the total brand value (Rs 1,30,650 crore) in 2016. It was the biggest contributor this year, despite a drop in the category valuations on account of poor performance of public sector banks. An Interbrand report released earlier this month had 12, out of the top 40 brands, from the banking and the insurance segment. Interestingly, the climb up the charts has come with relatively smaller advertising budgets. Experts point out that these firms spend only a fraction of the amount spent by segments such as telecom, consumer durables and auto.
Experience matters
Financial brands enjoy higher brand stickiness as people are more cautious when dealing with money, experts say. "Stickiness is a function of experience," said Harish Bijoor who runs a brand advisory firm based out of Bengaluru. HDFC Bank, the most valued brand in 2016 according to the BrandZ Top 50, has kept the top spot three years in a row by focusing on providing customers with a different experience. By clearing loans quickly, cutting down on transaction time and offering help with allied tasks, banks are building a strong relationship with customers and thereby winning the loyalty game.
Consumers enjoy greater choice today but choice can weaken loyalty. So brands focusing on being different in a meaningful way can create demonstrable impact on their value. This is especially true for financial sector brands. "Many of these are retail oriented brands. Banks are like the FMCG category in tea and coffee," explained Bijoor.
The growing digital savvy of the financial sector helps too. Most of the banks listed in the Interbrand report are there because they have been quick to grasp the growing need for digital transactions.
For instance, the Interbrand report said that HDFC Bank , Axis Bank, IndusInd Bank, Bank of Baroda among others benefited from strengthening their profile in the digital world. They won customer trust too, by providing digital banking solutions such as mobile wallets, online account openings etc.
Cause marketing
Financial sector brands do not spend as much on advertising as their counterparts in other sectors, but their budgets are growing. For instance, Life Insurance Corporation of India (LIC), which controls close to 70 per cent of the life insurance market, has increased its advertising spend from Rs 366.7 crore in FY15 to Rs 478 crore in FY16, according to their annual report for 2015-16.
Interestingly, instead of using traditional media, LIC has focused on increasing its involvement with social causes and inclusion initiatives. It has also placed a huge thrust on rural businesses and the Interbrand report said a set of such initiatives had played a big role in improving its brand value. "Our advertising activities were focused on addressing specific concerns of the insuring and investing public and were also socially purposive," said LIC in its annual report.
As a group, the private banks in the BrandZ India Top 50 rose by seven per cent in brand value. "Each of the private banks strengthened its digital capabilities and presence outside of India's urban centers," the report said.
The banking and insurance companies are also keen to reach out to young consumers and are using digital media to promote their brands. There is also an attempt to be seen as progressive brands. LIC, Axis Bank and HDFC Bank among others have aligned themselves with issues such as gender equality, education of the girl child and a host of other causes. Agility, flexibility, and adaptability are invaluable characteristics for brands and businesses to grow. "Breakthrough Brands set the pace for the market - and for all other brands - particularly when they reflect the pace of people," said the Interbrand report.
