Phillip Kotler popularized Jerome McCarthy's 4Ps for marketing and since a 5th P for People has been added, which arguably is one of the most crucial P's in the mix.
Marisa, Vivian, Emily, and Lierin armed me with such incredible research for today's newsletter that I am feeling bold and wish to redefine the 5 P's for Modern Banking.
We're entering a new era of personalization, and the customer is demanding a customized experience. The New 5 P’s of Modern Banking reflect the shifting expectations and focus on engaging customers at every level, from emotional connection to tailored rewards. Here's why it's time to embrace this fresh approach:
1. Product: Are we truly meeting our customers where they are?
Align your FI's products with the needs and preferences of different customer segments. Focus on how your offerings reflect customer demands, whether it's through tailored premium cards or innovative BNPL services.
2. Place: Is our messaging reflective of personalization?
Ensure your communication channels are where your customers are most engaged. Whether it's email, social media, or digital advertising, the "place" you reach your audience should feel personalized and targeted.
3. Price: How can we innovate with rewards?
Reevaluate your pricing models by introducing new reward structures. Are your cashback, discount, or investment-based rewards evolving to stay competitive and valuable for your customer base?
4. Promotion: Are we leveraging the right digital tools?
The way you promote your products needs to adapt to the digital landscape. Consider how tools, like paid social ads, online video, and email marketing, can better convey your personalized offers to specific customer segments.
5. People: What emotional value are we offering?
Beyond transactional benefits, think about how your brand connects with your customers emotionally. How are you offering experiences that resonate with their lifestyles and aspirations?
By reframing these questions through the lens of the 5 P’s, your FI can build stronger, more personalized connections with consumers and thrive in an evolving market.
