By Emily Mayben, Marketing Consultant, Advisors Plus
Consumer banking has always been about relationships – but in today’s digital-first world, relationships aren’t just built in person at the branch, but through personalized, relevant interactions at every touchpoint. And customers expect it: their financial institution should know them, anticipate their needs and offer solutions that fit their lifestyle.
It’s just like their experiences with other businesses, such as subscription meal services tailored to their specific tastes, streaming platforms that recommend shows based on previous views, and health and beauty stores that keep track of purchases and invite consumers to “purchase again.” According to a McKinsey report, 71% of consumers expect personalized interactions, and 76% get frustrated when they don’t receive them.
Personalization is no longer a luxury, it’s an expectation – particularly for Millennials, Gen Z and Gen Alpha (the oldest of whom will soon be hitting the workforce). These younger generations only know a world with the internet, and it’s second nature for them to move money with pay apps like Venmo, which has personalized its debit card ads and offers an easy-to-use 5% rewards program.
A one-size-fits-all campaign just no longer cuts it. For financial institutions, this presents both a challenge and an opportunity, especially when it comes to marketing debit and credit cards. The good news is that banks have a unique advantage: they already have deep relationships with their customers as well as access to valuable transaction data that can be leveraged for hyper-personalized marketing. And when you use that advantage, it results in:
- Stronger Response and Interaction Rates: Tailored messaging sees higher open rates, click-through rates and conversions.
- Increased Card Usage and Spend: Personalized rewards and promotions encourage consumers to use their bank’s card over competitors.
- Better Retention and Loyalty: Bank customers who feel understood and valued are less likely to take their business elsewhere.
Personalization Strategies That Work
Large financial institutions and fintechs are already leveraging personalization. But no matter the size of your bank, you can adopt similar strategies using your existing resources, including consumer data. In addition, consider investing in consumer relationship management (CRM), data analytics and marketing automation tools to make personalization scalable.
Here are some ways to personalize your card marketing:
- Speak to the Right Audience with Data-Driven Segmentation. Rather than sending the same offer to all consumers, segmentation allows banks to create campaigns based on real needs. Use transaction and behavioral data to group consumers based on spending habits, life stages and financial goals.
- Example: Identify frequent travelers by their airline, hotel and out-of-town purchases and offer them travel-related credit card rewards or benefits.
- Tailor Promotions and Incentives. Generic rewards programs are losing their appeal. Consumers are more likely to take advantage of offers that align with their preferences and spending habits, so offer them personalized cashback or points-based promotions based on past transactions.
- Example: Offer “5% cashback on groceries this month” to those who frequently shop at supermarkets.
- Personalize Messaging and Storytelling. Consumers don’t want financial jargon – they want content that speaks directly to their goals and challenges. Rather than providing generic financial advice, craft marketing messages that speak to their individual needs.
- Example: Engage young consumers with a “Guide to Smart Spending” email series when they open a new credit card.
- Keep it Consistent Across Channels. Personalization shouldn’t stop at direct mail and email. Reinforce the message across email, mobile banking apps, SMS and digital ads to ensure a seamless, personalized experience.
- Example: Send a personalized balance transfer offer via letter, follow up with an email about the offer, then an ad on their mobile banking app with a quick link to request and conduct the transfer.
- Boost Your Reach with AI (But Don’t Lose the Human Touch). AI can help analyze large datasets and predict the right offer for the right consumer at the right time. However, human oversight is key: AI should be a tool and not a replacement for personalized customer relationships.
- Example: Conduct AI-powered A/B testing to determine which types of rewards drive the most engagement or which email subject lines have the best open/conversion rates.
Did It Work? How Can You Tell?
Be sure to run pilot campaigns before launching to your entire customer base, then refine based on performance insights. Key performance indicators (KPIs) include:
- Engagement Rates: Open rates, click-through rates and conversions to personalized offers
- Card Activation and Usage: Increase in transactions per active cardholder
- Spend Lift and Interchange Revenue: Growth in total spend volume per cardholder
- Member Satisfaction and Retention: Net Promoter Score (NPS) and member feedback related to personalized experiences
Personalization is the Future of Payments Marketing
Personalization isn’t just a trend. It’s the future of marketing – and financial institutions that embrace data-driven personalization will see stronger customer relationships and greater payments portfolio growth. AI can support personalization efforts and make scalability possible, but balance automation with a human connection to ensure messaging aligns with your financial institution’s values and consumer trust.
By combining smart segmentation, relevant offers and meaningful messaging, financial institutions can ensure their cards remain top-of-wallet in a competitive market. Still, the human element remains the most important differentiator for banks – at any scale. Want to personalize your credit card program, but not sure where to start? Consider working with a partner like Advisors Plus to make the most of your marketing.
Emily Mayben: Advisors Plus Marketing Consultant Emily Mayben is an experienced marketing professional with nearly two decades in the financial industry. Known for her strategic approach and strong insight into consumer behavior and needs, Emily has helped financial institutions drive growth through branding, innovation and digital transformation. Her leadership has supported impactful initiatives across marketing, product development, and customer experience.