4 lessons from finance apps that can make you money_Insert Blog

Laughing all the way to the app

Reading Time: 4 min.Keys, wallet, phone: those are the things that most people try to remember every time they leave the house. But increasingly, the phone is starting to take the place of the wallet: it has payment apps, and apps that replace your ATM card, loyalty cards, and insurance cards. As adoption grows, and financial institutions learn more about their users, in-app communications become crucial for furthering business goals. Let’s take a look at some common goals and how you might tackle them in your app:

Increased usability

Unlike retail businesses, banks are actually trying to reduce the number of customers who enter their branches; transactions that can be done remotely, and digitally, translate to enormous cost savings for banks. But the force of habit is a powerful one, and so many banks will need to focus on educating users and encouraging them to adopt new app features.

For bank customers who have been going to their local branch to deposit checks for decades, depositing a check using the app might be daunting. They probably use the app to check their account balance, but if you know that they are depositing checks in-person, a great way to reach out to them would be in the app with a friendly explanatory video that shows how easily mobile deposits are.

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Increased revenue

Unlike banking or payment apps, insurance apps are not used on a regular basis; they are more of a reference tool and utility for policy holders. Retention and engagement, then, are not the primary goals for insurance apps. ARPU is, though. The app is a perfect place to market bundling options to particular segments.

In this example, the insurance company wanted to target young professionals in large cities – this group is the most likely to need Renters’ Insurance, which is often overlooked. But, if they have car insurance, they are much more likely to bundle at a discount. This particular segment is also native to mobile, and is more likely to make a purchase in the app.

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Increased retention

For bank and insurance apps, retention is less of a concern, because they have captive audiences. For P2P and POS payment apps, though, retention is the name of the game. These apps rely not only on loyalty, but also on frequency of use. Because the market of payment apps has become increasingly competitive, apps need to stand out to their users by creating highly personalized value.

In the example below, one such app leveraged user behavioral data to identify patterns that might indicate churn, and fight it with a personalized push message. This was sent to users who have used the app more than 3 times in the past to pay their rent, but have not done so again this month (based on users’ designation of their payment as rent, or even with a house emoji 🏠 ). This is a way to be tremendously helpful (in case someone forgot to pay their rent), but also to remind them of the app and its value.

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Increased understanding

For many financial institutions, an app is a great place to introduce new products, and learn more about how their users feel about the brand, its offerings, and their experience. Collecting user feedback is also an excellent way to increase loyalty, because users expect to feel heard, especially when their money is involved.

There’s myriad ways to survey users for feedback, but the key is to time the survey correctly. In this example, a bank prompted users to take a survey after they chose not to complete the purchase of foreign currency. To better understand their action, the bank surveys them right after they clicked “Cancel,” and also offers them the opportunity to speak to a representative right then and there. This is not only likely to help the bank better understand the motive and improve the service, it’s also likely to increase conversion if those who choose to speak to a representative complete the action.

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Finance apps have a different set of goals from traditional retail apps, but they can benefit from the same in-app marketing tactics. Engaging in the app is the way for financial brands to become a part of their customer’s phones, as wallets get left behind.

How can Insert help your brand meet its app goals? Schedule a 1-on-1 demo to find out!

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Hillá Meller is the Mobile Engagement Hacker at Insert. An avid consumer of digital media, Hillá has extensive experience researching, analyzing and writing about all things digital. Hillá is a history nerd, podcast aficionado, and neglectful food blogger.
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