The fintech trade is predicted to develop at a CAGR of 30%, and a big issue driving this progress is the progressive and customer-centric strategy of fintech firms.
To proceed to thrive, fintech firms want to make sure that consumer engagement is constant and actively rising. An effective way to attain that is by utilizing funnels & funnel evaluation.
In actual life, we use bodily funnels to direct the stream of varied liquids whereas filtering out impurities. Within the digital lifetime of fintech, funnels do the identical – they direct the stream of leads by way of the consumer journey – from the time the consumer first turns into conscious of the service being supplied, to onboarding, to conversion.
Funnels assist determine the curiosity ranges primarily based on shopper conduct to nudge prospects to the subsequent stage of the consumer journey. They make sure that good-quality customers undergo from one stage to a different. For instance, if a consumer has repeatedly proven curiosity in a sure monetary product on an app/web site, comparable to a house mortgage, however hasn’t but taken the required steps to finish a purchase order, a funnel evaluation may also help determine the attainable causes for a similar, after which take the actions that can encourage the consumer to use for the mortgage.
An successfully structured funnel will guarantee a friction-free consumer journey, and funnel analytics may also help us obtain that in some ways – from onboarding prospects, to figuring out the reason for drop offs, to driving conversions and extra repeat purchases. This is the reason an in depth understanding and utility of funnel evaluation is a strategic selection that may enhance consumer engagement. It’s a win-win the place customers get what they want whereas fintech firms acquire a aggressive edge.
A fundamental Acquisition-Activation-Monetization funnel can additional be cut up into extra detailed funnels specializing in consumer conduct’s finer points, as under.
- Buyer Acquisition funnel (Prime of the Funnel – TOFU): Consciousness – Curiosity – Acquisition funnel.
- Activation funnel (Center of the Funnel – MOFU): Consideration – Intent funnel.
- Monetization (Backside of the Funnel – BOFU): Analysis – Buy – Retention – Repeat Buy—Referral funnel.
An in depth evaluation of those funnels can help unimaginable insights into consumer conduct, particularly for fintech firms that organically have entry to granular knowledge about particular person customers.
Listed here are ten methods through which you should use funnel evaluation to extend consumer engagement:
Technique #1: Enhance Onboarding Course of
Onboarding, for many fintech apps or web sites, is a course of that leads new customers on a journey through a predetermined path – from downloading the app/visiting the web site, creating an account, sharing their delicate private and monetary knowledge, confirming their id (usually by receiving an OTP on their cellphone or electronic mail), and finishing their first transaction. This multi-stage course of is the crucial first level of contact with the shopper. Additionally it is usually an space of enchancment for fintech startups. Prospects might drop off with out finishing these steps if this course of is cumbersome or complicated.
Funnel evaluation can reveal areas of confusion or complexity thereby serving to you streamline the method. They will additionally present insights into the place your high-converting visitors comes from. Figuring out your most profitable acquisition channels can information finances allocation.
For FamPay, India’s first neo-bank for teenagers, the concentrate on bettering onboarding paid off, as they skilled a 2x enchancment within the onboarding funnel and a big enhance within the variety of transactions made and referral customers. They have been ready to do that with WebEngage’s assist by gaining an intensive understanding of essential consumer occasions and knowledge necessities.
Technique #2: Establish Drop-Off Factors
There are leakages at every stage of the shopper’s journey by way of the funnel. A few of these leakages are inevitable and important – we solely need “high quality” customers. Nevertheless, once we begin shedding these high quality customers, it turns into a trigger for concern. Buyer retention is a big problem and an infinite alternative for fintech firms.
Analyzing the funnel helps us isolate particular factors the place customers drop off or abandon the method. By understanding what your customers do earlier than and after they drop off, you possibly can take the required steps to enhance the consumer interface and retarget the consumer’s engagement. Even the smallest of consumer actions – comparable to repeatedly clicking a button earlier than dropping off – can yield a wealth of knowledge. For instance, possibly that function is non-responsive or not quick sufficient for the consumer. Focusing efforts on optimizing options in and round these crucial factors is an environment friendly and cost-effective solution to scale back friction.
Bajaj Finserv EMI Retailer (BSES) is a living proof. A leaky conversion funnel confirmed that the majority of their customers by no means moved past the ‘consciousness’ stage due to the corporate’s incapability to achieve out to prospects on the proper time on the proper channel through customized messages. With the assistance of WebEngage, they analyzed knowledge to pinpoint drop-offs, created a retargeting ecosystem, and inserted the proper plugs. In consequence, BSES witnessed a 28% uplift in consumer engagement and a 3.5X enhance in accomplished transactions.
Technique #3: Optimize Person Interface (UI) and Person Expertise (UX)
UI and UX decide the stickiness of an app or service. They make the consumer journey well-integrated and seamless. A well-designed UI/UX alerts the consumer that the app/web site is dependable and constant, and engenders belief and confidence. Conversely, unfavorable consumer experiences with the UI can depart customers feeling cautious and uncomfortable, driving down engagement.
Funnel evaluation can provide us an in depth understanding of how customers work together with the platform. This knowledge can then be used to make UI/UX enhancements, add related prompts, and refine options, making certain a clean and pleasant consumer expertise. For instance, you should use metrics comparable to buyer scores/opinions, problem decision charges, and response occasions to gauge customer support and satisfaction. Accordingly, you possibly can enhance the assist options by including chatbots, present extra self-service choices, or higher handle useful resource allocation throughout peak occasions.
A nice instance of that is CASHe, a fintech platform offering shopper loans to salaried millennials. Going through the challenges of an exhaustive gross sales funnel and elevated consumer churn, the corporate used funnel evaluation to determine leakages. They then used real-time communication through IVR – Interactive Voice Response System to bridge the gaps. In consequence, 35% of customers have been routed through IVR and redirected additional down the funnel. This led to a formidable 75% enhance in CASHe’s repeat consumer base.
Technique #4: Personalize Person Journey
Person journeys are distinctive to every particular person consumer. The place a brand new consumer will want extra steering, a frequent consumer prefers the benefit of self-service and sooner motion by way of the journey, slicing out extraneous steps. Platforms delicate to those variations can leverage the personalization of options and communication to ship what the consumer desires.
Communication primarily advantages from personalization. On this info age, customers are frequently bombarded with distracting communication. To chop by way of the noise, and appeal to and maintain the shopper’s consideration, what is important is a hyper-personalized strategy that goes above and past to ship customized content material, suggestions, and presents. This, in flip, will increase engagement and conversion charges. Fintech firms can acquire the insights mandatory to attain this individual-focused strategy by dissecting their funnels.
DSP Blackrock innovatively used WebEngage’s electronic mail personalization instruments for his or her new yr greeting emails. Utilizing buyer transaction knowledge, they customized their emails by sending every buyer a abstract of their sound (or not-so-sound) monetary choices within the earlier yr. This elevated the e-mail open price to 39% and drove up engagement.
Technique #5: Implement Behavioral Triggers
One particular means personalization can drive engagement is by utilizing behavioral triggers. From a behavioral economics perspective, we’re topic to intuitive pondering figuring out our monetary choices. Understanding these cognitive biases and constructing options or triggers that problem them permits decision-making which is the important thing to buyer engagement.
Funnel evaluation may also help us determine triggers that encourage customers to take particular actions. Fintech firms can then strategically implement behavioral triggers, comparable to customized messages or limited-time presents, to nudge customers towards conversion.
Coverfox, India’s largest Insure-tech platform, wished to make sure present customers renewed their insurance policies. Nevertheless, behavioral mapping is advanced as a result of a single consumer might maintain a number of insurance policies or merchandise. To work round this downside, Coverfox recognized every coverage as a person consumer after which mapped the whole lot about it to a novel consumer ID. They may then use a focused and customized communication technique to nudge the consumer periodically to resume their coverage, resulting in a 30% enhance in renewals.
Technique #6: Streamline Conversion Course of
The backside of the funnel, i.e., the conversion funnel metrics, is an information gold mine for fintech. Utilizing funnel evaluation to trace high-value conversion occasions and correlating them with different consumer exercise may also help us to determine any bottlenecks or pointless steps which will discourage customers from finishing a transaction. By streamlining the conversion course of, fintech firms can enhance the possibilities of profitable conversions.
Angel One did simply that with WebEngage’s assist by figuring out a number of alternatives to plug leaks and make UX enhancements to extend conversions. This included focused communication with ‘unknown web site guests,’ welcome campaigns through push notifications, communication within the consumer’s most well-liked language, leveraging wealthy notification content material, and inspiring customers who’ve blocked push notifications to reactivate them. In consequence, Angel One witnessed double the variety of conversions inside simply six months.
Technique #7: Improve Communication and Notifications
As we’ve got seen in a number of examples above, well timed, related, and customized communication and notifications can drastically influence consumer engagement in fintech. Funnels can analyze consumer engagement with notifications, emails, and different communication channels. This knowledge can then be used to construct an efficient communication technique and ship high-quality content material and notifications that drive the consumer to behave.
Merolagani, for instance, leveraged WebEngage’s dashboard analytics instruments and recognized that their communication technique wanted enchancment. They then successfully used push notifications, SMS, and electronic mail advertising and marketing to teach individuals. This led to a rise of their whole consumer base from 8.9L to 35L and a 40% win-back price within the first month.
Technique #8: Enhance Buyer Lifetime Worth (CLV)
Changing a lead right into a accomplished buy is nice. What is healthier is to transform them right into a frequent consumer, who not solely repeats the transaction but additionally purchases further services. Buyer lifetime worth is the gold normal for fintech.
Analyzing consumer conduct utilizing funnels may also help determine alternatives for cross-selling and upselling to present customers. Fintech firms can place their merchandise/companies primarily based on that knowledge, growing the possibilities of conversion. For instance, as mentioned earlier, DSP Blackrock elevated consumer engagement with the assistance of hyper-personalized new yr greetings.
Acko Normal Insurance coverage boosted its CLV by encouraging its present policyholders to resume their insurance policies year-on-year (YoY). As a associated metric, Acko additionally wished to enhance its persistency ratio, i.e., how lengthy prospects stick with their insurance policies, as indicated by the variety of coverage renewals. A North Star metric for Acko, the persistency ratio signifies enterprise profitability and progress. Utilizing focused and hyper-personalized communication instruments from WebEngage, Acko achieved a 17.3% enhance in coverage renewals.
Technique #9: Optimize Retargeting Methods
As we’ve got mentioned, leakages at numerous levels of the funnel might imply a possible lack of customers. Leveraging retargeting methods and initiatives successfully to win again these customers will increase the chance of conversions. Nevertheless, it’s essential to watch out whereas using retargeting. It’s a delicate stability – too little might imply that customers don’t return to the platform; an excessive amount of might danger annoying and alienating them. A superb retargeting technique is predicated on empathy for the consumer and a real want to serve them.
Funnel evaluation may also help determine customers who dropped off and their causes for exiting. Based mostly on the identical, retargeting methods, comparable to customized adverts or follow-up emails, might be designed and carried out to re-engage these customers.
Buyer drop-off was one of many challenges that Bajaj Finserv confronted. With the assistance of Webengage, they used onsite retargeting to have interaction guests to their web site with related promotional messaging. For instance, guests who visited residence mortgage pages on their final go to however didn’t make a purchase order have been proven a message prompting them to ‘Apply for Residence Mortgage’ after they revisited the positioning. One other microsegment of tourists was focused utilizing a notification to verify their eligibility. The online consequence was a 29% enhance within the month-to-month leads for one in all their monetary companies merchandise and a formidable 9% progress within the month-on-month mortgage disbursal.
Technique #10: Steady A/B Testing
Frequent A/B exams assist fintech firms optimize their consumer journey by experimenting with totally different methods, content material, and consumer experiences. As an illustration, they could check out totally different touchdown pages, call-to-action buttons, or notifications. A comparability of the outcomes by way of A/B testing utilizing a step-by-step funnel evaluation may also help them perceive what’s working and what’s not.
India’s main digital wealth supervisor Scripbox utilized insights concerning the customers’ properties and behaviors to speak the proper message to the proper customers. Initially, they focused customers primarily based on demographics comparable to age group. This didn’t yield the specified outcomes. Nevertheless, segmenting the customers into NRI and home residents produced important outcomes. They witnessed a 3X rise in consumer engagement, a rise in electronic mail open charges, and a discount within the unsubscribe price.
Conclusion
India’s fintech trade, already the world’s third largest, is on its solution to changing into Asia’s fintech capital. Fintech firms should monitor the shopper to maximise alternatives and progress. Dissecting their funnels may also help fintech firms acquire the required insights to construct a sturdy and sustainable consumer engagement technique primarily based on empathy and sensitivity to the customers’ wants.
WebEngage has a confirmed monitor report of serving to purchasers refine their buyer journeys with dynamic funnels. By combining funnels with different superior analytics options offered by WebEngage, comparable to Path evaluation, you possibly can acquire deep insights into consumer conduct and drive them towards essentially the most optimum stream. This, in flip, means that you can maximize consumer engagement and retention.
Curious to be taught extra? Try our Impression Tales. Now we have helped fintech companies like yours obtain desired outcomes with our progressive analytics capabilities, and we’re sure that we may also help you, too. Go forward and request a demo right this moment!
