3 Approaches to Help Ensure Customer Engagement in Fintech
Banking and financial services apps are among the top ten most used app types, according to Statista. At the same time, fintech companies and banking institutions are fighting to achieve great retention rates. Downloaded apps do not indicate the level of involvement. Therefore, only the number of downloads or users is not enough to measure the success of an app. Information provided by Plaid’s The Fintech Effect confirms this claim.
The report notes that demand for financial apps has escalated in recent years. 54 percent of respondents said they have at least three fintech apps installed on their smartphone. However, 60 percent of respondents use only two or fewer such applications per day.
Before we dive into the specifics of how to get great user engagement or improve it, let’s figure out how to measure mobile app engagement.
KPI analysis of mobile applications to measure user engagement:
There are many ways to measure how people interact with your app. Let’s take a look at some of these mobile app performance metrics:
Session length. If you’re confident that your app provides a compelling amount of great content and features, but the session duration is short, this could indicate deficiencies in the app’s navigation or usability. In this case, review and improve the user experience of the application. If session duration is constantly decreasing, it may mean that the app is not attractive to users and that additional useful content and features need to be added or a complete redesign is needed.
Intensity of use:
Measure how often people use your app to see if they find it useful and if they’re used to it. When measuring frequency of use, identify the proportion of light users compared to heavy users. Segment them and see how they interact with your app.
The purpose here is to check if people are connected to the app. To ensure accurate statistics for measuring this KPI, set a specific target for repeat visits. In case you want to increase the number of repeat visits, speculate on how you can improve user interaction with the application.
Evaluate the percentage of visits to your app that were the last in a session to identify pages that are experiencing abnormally high bounce rates. Then explore these sites to find out why people are leaving this particular location. Follow a crash analysis approach to identify pages where the application frequently crashes and allow developers to detect any abnormalities.
Now that we know how to measure customer engagement, we’re ready to look at some ways to improve digital customer engagement in banking. Follow these guidelines when developing your banking software and marketing your application.
Strengthening the involvement of mobile customers in banking:
In this article, we focus on three popular and practical approaches and describe them in detail.
Extend app engagement by adding gamification elements:
Adding gamification elements to mobile apps that don’t play themselves is a popular approach today for app owners to improve user engagement. The fintech industry is keeping up with this trend and can already boast of cases where gamification is applied to varying degrees. There are applications that are enriched only with gamification components, including progress bars or badges. However, there are also applications that go further.
Take Fortune City, for example, a game app that combines accounting with a city simulation. Using this application, users can create and run a virtual city. Users build houses by entering their expenses and income. For example, users record food expenses and build a food stand.
Such gamification elements inspire people to record all expenses and incomes as they aspire to build a thriving city. Users can even hire townspeople to work on user structures and produce coins. They can be spent on uniting similar buildings to create larger buildings, upgrading available buildings, or purchasing upgrades at the Town Hall.
Innovative customer engagement ideas implemented in the app have led to high popularity of Fortune City among consumers. The app now boasts a 4.7-star rating on the App Store and more than five million downloads.
Re-engage users with personalized push notifications:
Push notifications enable the creation of a smooth user journey and ensure a sense of long-term connection between the user and your fintech application. Push notifications must be a prominent part of a comprehensive communication strategy by combining the set of services and offers you provide to customers. As a result, you will be able to gain customer trust and improve brand perception.
Take, for example, Axis Bank, an Indian bank that sends personalized notifications to users based on the actions users take while using the app. Such notifications are sent only to those users who are interested in the bank’s credit card offers, not to target all users. As a result, a whopping 36 percent of those who received the notification became leads.
Track omnichannel marketing strategies:
A thoughtful omnichannel approach to user engagement will contribute to the success of your fintech application. Research by Invesp found that organizations that adopt omnichannel marketing strategies can retain up to 89 percent of customers. Conversely, companies that do not adopt such strategies retain only 33 percent of their clients.
Customers typically cross one channel when using digital banking. Allow them to easily switch from your app to your website and social media and receive regular push notifications. Ensure that this continuous journey delivers the same brand and tone of voice.
In addition to the above, there are plenty of user-engaging approaches to ensure or improve user engagement with your fintech app. These include personalizing the user experience, making login easier and embracing social elements. So take the time to research them and consider accepting them.
There are many approaches used to improve user engagement for your app. But if you examine each of them, you’ll notice that all of these strategies have one thing in common: they put the user first. If you follow this rule, you will be bound to achieve a high level of user engagement with your fintech application.
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