The fintech business is predicted to develop at a CAGR of 30%, and a major issue driving this progress is the revolutionary and customer-centric strategy of fintech firms.
To proceed to thrive, fintech firms want to make sure that person engagement is constant and actively rising. An effective way to realize that is by utilizing funnels & funnel evaluation.
In actual life, we use bodily funnels to direct the movement of varied liquids whereas filtering out impurities. Within the digital lifetime of fintech, funnels do the identical – they direct the movement of leads via the person journey – from the time the person first turns into conscious of the service being supplied, to onboarding, to conversion.
Funnels assist determine the curiosity ranges based mostly on shopper conduct to nudge prospects to the following stage of the person journey. They be certain that good-quality customers undergo from one stage to a different. For instance, if a person has repeatedly proven curiosity in a sure monetary product on an app/web site, corresponding to a house mortgage, however hasn’t but taken the required steps to finish a purchase order, a funnel evaluation can assist determine the doable causes for a similar, after which take the actions that may encourage the person to use for the mortgage.
An successfully structured funnel will guarantee a friction-free person journey, and funnel analytics can assist us obtain that in some ways – from onboarding prospects, to figuring out the reason for drop offs, to driving conversions and extra repeat purchases. For this reason an in depth understanding and utility of funnel evaluation is a strategic selection that may enhance person engagement. It’s a win-win the place customers get what they want whereas fintech firms acquire a aggressive edge.
A primary Acquisition-Activation-Monetization funnel can additional be cut up into extra detailed funnels specializing in person conduct’s finer points, as under.
- Buyer Acquisition funnel (High 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 unbelievable insights into person conduct, particularly for fintech firms that organically have entry to granular information about particular person customers.
Listed below are ten methods by which you should use funnel evaluation to extend person 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 by way of a predetermined path – from downloading the app/visiting the web site, creating an account, sharing their delicate private and monetary information, confirming their identification (typically by receiving an OTP on their cellphone or e-mail), and finishing their first transaction. This multi-stage course of is the crucial first level of contact with the client. Additionally it is typically 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 site visitors comes from. Figuring out your most profitable acquisition channels can information price range allocation.
For FamPay, India’s first neo-bank for teenagers, the give attention to enhancing onboarding paid off, as they skilled a 2x enchancment within the onboarding funnel and a major improve within the variety of transactions made and referral customers. They have been in a position to do that with WebEngage’s assist by gaining an intensive understanding of vital person occasions and information necessities.
Technique #2: Determine Drop-Off Factors
There are leakages at every stage of the client’s journey via the funnel. A few of these leakages are inevitable and important – we solely need “high quality” customers. Nevertheless, once we begin dropping 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 person interface and retarget the person’s engagement. Even the smallest of person actions – corresponding to repeatedly clicking a button earlier than dropping off – can yield a wealth of knowledge. For instance, perhaps that function is non-responsive or not quick sufficient for the person. Focusing efforts on optimizing options in and round these crucial factors is an environment friendly and cost-effective method to cut back friction.
Bajaj Finserv EMI Retailer (BSES) is a working example. 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 succeed in out to prospects on the proper time on the appropriate channel by way of personalised messages. With the assistance of WebEngage, they analyzed information to pinpoint drop-offs, created a retargeting ecosystem, and inserted the appropriate plugs. Because of this, BSES witnessed a 28% uplift in person engagement and a 3.5X improve 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 person journey well-integrated and seamless. A well-designed UI/UX alerts the person that the app/web site is dependable and constant, and engenders belief and confidence. Conversely, adverse person experiences with the UI can depart customers feeling cautious and uncomfortable, driving down engagement.
Funnel evaluation may give us an in depth understanding of how customers work together with the platform. This information can then be used to make UI/UX enhancements, add related prompts, and refine options, guaranteeing a clean and fulfilling person expertise. For instance, you should use metrics corresponding to buyer scores/evaluations, challenge decision charges, and response instances to gauge customer support and satisfaction. Accordingly, you possibly can enhance the help options by including chatbots, present extra self-service choices, or higher handle useful resource allocation throughout peak instances.
A nice instance of that is CASHe, a fintech platform offering shopper loans to salaried millennials. Dealing with the challenges of an exhaustive gross sales funnel and elevated person churn, the corporate used funnel evaluation to determine leakages. They then used real-time communication by way of IVR – Interactive Voice Response System to bridge the gaps. Because of this, 35% of customers have been routed by way of IVR and redirected additional down the funnel. This led to a powerful 75% improve in CASHe’s repeat person base.
Technique #4: Personalize Person Journey
Person journeys are distinctive to every particular person person. The place a brand new person will want extra steerage, a frequent person prefers the benefit of self-service and sooner motion via the journey, slicing out extraneous steps. Platforms delicate to those variations can leverage the personalization of options and communication to ship what the person needs.
Communication primarily advantages from personalization. On this info age, customers are frequently bombarded with distracting communication. To chop via the noise, and entice and maintain the client’s consideration, what is important is a hyper-personalized strategy that goes above and past to ship personalised content material, suggestions, and affords. This, in flip, will increase engagement and conversion charges. Fintech firms can acquire the insights essential to realize this individual-focused strategy by dissecting their funnels.
DSP Blackrock innovatively used WebEngage’s e-mail personalization instruments for his or her new yr greeting emails. Utilizing buyer transaction information, they personalised 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 approach 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 allows decision-making which is the important thing to buyer engagement.
Funnel evaluation can assist us determine triggers that encourage customers to take particular actions. Fintech firms can then strategically implement behavioral triggers, corresponding to personalised messages or limited-time affords, to nudge customers towards conversion.
Coverfox, India’s largest Insure-tech platform, needed to make sure current customers renewed their insurance policies. Nevertheless, behavioral mapping is complicated as a result of a single person might maintain a number of insurance policies or merchandise. To work round this downside, Coverfox recognized every coverage as a person person after which mapped every little thing about it to a singular person ID. They might then use a focused and personalised communication technique to nudge the person periodically to resume their coverage, resulting in a 30% improve in renewals.
Technique #6: Streamline Conversion Course of
The backside of the funnel, i.e., the conversion funnel metrics, is a knowledge gold mine for fintech. Utilizing funnel evaluation to trace high-value conversion occasions and correlating them with different person exercise can assist 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 improve the probabilities 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 by way of push notifications, communication within the person’s most popular language, leveraging wealthy notification content material, and inspiring customers who’ve blocked push notifications to reactivate them. Because of this, Angel One witnessed double the variety of conversions inside simply six months.
Technique #7: Improve Communication and Notifications
As we’ve seen in a number of examples above, well timed, related, and personalised communication and notifications can tremendously affect person engagement in fintech. Funnels can analyze person engagement with notifications, emails, and different communication channels. This information can then be used to construct an efficient communication technique and ship high-quality content material and notifications that drive the person 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 e-mail advertising to coach individuals. This led to a rise of their whole person base from 8.9L to 35L and a 40% win-back price within the first month.
Technique #8: Improve Buyer Lifetime Worth (CLV)
Changing a lead right into a accomplished buy is nice. What is best is to transform them right into a frequent person, who not solely repeats the transaction but additionally purchases extra services. Buyer lifetime worth is the gold commonplace for fintech.
Analyzing person conduct utilizing funnels can assist determine alternatives for cross-selling and upselling to current customers. Fintech firms can place their merchandise/companies based mostly on that information, growing the probabilities of conversion. For instance, as mentioned earlier, DSP Blackrock elevated person engagement with the assistance of hyper-personalized new yr greetings.
Acko Common Insurance coverage boosted its CLV by encouraging its current policyholders to resume their insurance policies year-on-year (YoY). As a associated metric, Acko additionally needed 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% improve in coverage renewals.
Technique #9: Optimize Retargeting Methods
As we’ve mentioned, leakages at varied levels of the funnel may imply a possible lack of customers. Leveraging retargeting methods and initiatives successfully to win again these customers will increase the probability 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 threat annoying and alienating them. A superb retargeting technique relies on empathy for the person and a real want to serve them.
Funnel evaluation can assist determine customers who dropped off and their causes for exiting. Primarily based on the identical, retargeting methods, corresponding to personalised advertisements or follow-up emails, may be designed and applied 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 house mortgage pages on their final go to however didn’t make a purchase order have been proven a message prompting them to ‘Apply for Dwelling Mortgage’ after they revisited the location. One other microsegment of holiday makers was focused utilizing a notification to test their eligibility. The online consequence was a 29% improve within the month-to-month leads for one among their monetary companies merchandise and a powerful 9% progress within the month-on-month mortgage disbursal.
Technique #10: Steady A/B Testing
Frequent A/B checks assist fintech firms optimize their person journey by experimenting with completely different methods, content material, and person experiences. For example, they could check out completely different touchdown pages, call-to-action buttons, or notifications. A comparability of the outcomes via A/B testing utilizing a step-by-step funnel evaluation can assist them perceive what’s working and what’s not.
India’s main digital wealth supervisor Scripbox utilized insights in regards to the customers’ properties and behaviors to speak the appropriate message to the appropriate customers. Initially, they focused customers based mostly on demographics corresponding 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 person engagement, a rise in e-mail open charges, and a discount within the unsubscribe price.
Conclusion
India’s fintech business, already the world’s third largest, is on its method to changing into Asia’s fintech capital. Fintech firms should monitor the client to maximise alternatives and progress. Dissecting their funnels can assist fintech firms acquire the required insights to construct a strong and sustainable person engagement technique based mostly on empathy and sensitivity to the customers’ wants.
WebEngage has a confirmed observe report of serving to shoppers refine their buyer journeys with dynamic funnels. By combining funnels with different superior analytics options offered by WebEngage, corresponding to Path evaluation, you possibly can acquire deep insights into person conduct and drive them towards essentially the most optimum movement. This, in flip, permits you to maximize person engagement and retention.
Curious to be taught extra? Try our Influence Tales. We’ve helped fintech companies like yours obtain desired outcomes with our revolutionary analytics capabilities, and we’re sure that we can assist you, too. Go forward and request a demo at the moment!
