Mobile Marketing Do’s and Don’ts

At this point, it is no surprise that people are spending more and more time on their phones. Globally, people spend over 3 hours a day on their mobile phones on average and check their phones an average of 58 times per day. Additionally, there are more smartphone users in the world than ever. According to a report by Statista, there are over 6 billion mobile network subscriptions in the world. With the sheer number of mobile devices and the increased amount of time people spend on their mobile devices, it is no surprise that the focus on mobile marketing has increased. 

In general, mobile marketing refers to any sort of promotional activity that occurs on mobile devices. This includes a variety of forms like advertisements or push notifications. Understanding and utilizing mobile marketing is crucial for your financial institution. 

Trends in Mobile Marketing

With more and more people on their mobile devices, a few trends lead to the rise of mobile marketing. These trends point towards an increased want and need for mobile marketing from businesses.

• Banking on Mobile: The percentage of banking activites that occurs on mobile has steadily increased and 79.3 percent of millennials are interested in mobile banking. This shows that people are becoming more comfortable using mobile devices. As people become increasingly familiar with mobile devices, they will be more willing to engage with marketing material in a mobile format. 
• Network Connectivity: The world is becoming increasingly connected and many places are constantly improving their network connection. This has occurred with 5G in recent years, along with a growing number of cities adding fiber-optic internet (fiber). In a 2020 paper, McKinsey highlights many of the growing technologies that are leading to a more connected world. One specific example is the enhanced personalization and frictionless experience that comes from consumers continuing to use their mobile devices. As networks become faster and more reliable, people will continue to do more with their mobile devices.
• Rise of Video Content: Short-form video has been increasing in popularity in recent years, evidenced by the growth of TikTok, Instagram Reels, and Youtube Shorts. The normalization of video content is perfect for businesses that want to use video content for advertising. People are already used to watching 30-second to 3-minute videos on their phones and will be more likely to engage with a familiar format. 

Types of Mobile Marketing

Mobile marketing is a general term for many different types of marketing that occur in the digital space. Every financial institution does not (and likely should not) use every type of mobile marketing, but the key is to find the best fit for your business. Below are some examples of different types of marketing that are tailored to a mobile device.

• Social Media: A social media marketing strategy is a necessity in 2023. This includes but is not limited to, posting content on social media, interacting with consumers, and advertising on social media. Multiple social media platforms can be used, and all of them are accessible via a mobile device. 
• Notifications/Messages: By sending push notifications from an existing mobile app or text messages, financial institutions can reach a client directly and increase engagement. It is important for consumers to first have given permission to receive notifications or text messages. 
• Mobile-friendly website: The same website that works for a desktop does not always work on a mobile device. Financial institutions need to ensure that their website is responsive and intuitive on a mobile device, even if the business has a mobile application. A mobile-friendly website will increase the user experience and search visibility for your business.
• Mobile ads: Advertisements that appear on websites or apps. Many platforms, such as Google and Facebook, allow a user to specifically target mobile devices.

The Do’s and Don’ts of the Business

While there are many benefits of using mobile marketing, it must be done in a way that’s effectively reaching and connecting with your audience. Although specific strategies may vary for different businesses, these do’s and don’ts should help you navigate the mobile marketing world.

• Do Utilize Texts: Text messages have an open rate of about 98 percent, so this means your customers will be more likely to see a text from your business than an email on mobile devices. Utilize this platform to send clear, direct, and action prompting messages to your customers. But always review TCPA and your own compliance department’s approach to transactional or promotional texting. 
• Don’t Make Navigation Difficult: 61 percent of mobile users will not return to a website if it is not mobile friendly. Be sure you are not losing the attention of potential customers by ensuring that your website is not lagging behind, the pages are easy to navigate between, and that your pages are not too cluttered.
• Do Know Your Channels: Not all mobile apps are used by the same people across the board, so knowing the best channel to reach your customers is essential. For instance, around 60 percent of Gen Z is on TikTok, so if this is your target audience then this platform may be best for reaching them.
• Don’t Forget about Push Notifications: If you’ve already gained a good number of customers or app downloads, but want to remind customers of a sale, new service or update, push notifications may be the way to go. While these have to be sent sparingly, as to not annoy the customers, when used right you could see an open rate 7 times higher than email marketing.
• Do Try New Formats: Marketing on mobile devices may prompt for a different format of delivery than you are used to. 66 percent of mobile users find video content to be the most engaging content, so if applicable, an Instagram reel or TikTok video could be the best way for your customers to digest new content and information.

Financial institutions can tailor their marketing strategy and media to be optimized for a mobile device. Many of the advertisements can occur either in applications or on a webpage accessed on a mobile device. By doing so, you can take advantage of the increased number of mobile users who are spending more and more time on their devices. When used correctly, mobile marketing allows you to increase brand awareness, consumer engagement, and user acquisitions. 

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