The Key Performance Indicators (KPIs) of any business need to evolve with the growing maturity of the industry. FinTech is a highly data driven sector. Continuous monitoring of vital campaign metrics is important to enhance the customer experience and establish credibility, which is a highly important aspect of this sector today. If a FinTech company has to survive the highly competitive markets where everyone is offering a disruptive technology; it has to reach the right audience with the right products.
Here are 4 KPIs that FinTech companies can consider, when evaluating their marketing campaigns.
1. Qualified Leads (CPL and CPA)
Businesses need to evaluate the number of qualified leads obtained as compared to the opportunity cost of time and money in a marketing campaign. Cost per Lead (CPL) calculation tells a business about the true cost of engaging new customers. But experts say that FinTech companies should go beyond CPL and measure Cost per Acquisition (CPA) instead.
This is all about the number of leads that actually became registered customers. It is essential to track them from the source, right till the point of closing the sale. And, this requires the right alignment of marketing data and CRM sales data. Important points to be considered are:
- Queries generated from different marketing channels.
- Total revenue generated from each.
One of the simple ways to calculate CPA is to divide cost of sales and marketing by the number of customers acquired in a specific time period. This equation should also include associated technical and product costs, along with sales resource costs.
2. Conversion Rates from Various Point of Sales
For digital marketing activities, it is good to establish systems that can effectively calculate conversion metrics across all CTA points on websites and landing pages. Google Analytics can be used to calculate things like
- Number of white-paper downloads
- Number of signups for newsletters and blogs
- Number of signups for demo accounts on a trial basis
- Number of registrations for e-books and webinars
- Number of account registrations.
Consider linking the campaign landing pages to your analytics platform. All form completions, including pop-ups, should be tracked too. Businesses can see where the high-quality leads are coming from and capitalise on that activity more.
3. Word-Of-Mouth Marketing Success (Referral Performance Score)
An often overlooked aspect in FinTech marketing is the power of word-of-mouth referrals. FinTech brands are responsible for people’s life-savings, and if they are good at providing unique customer experiences, they will get referred. Consumers show loyalty to brands they trust, especially with their money, and they do this either by buying more of the company’s products or suggesting their friends and family to do so.
The Referral Performance Score (RPS) is the percentage of customers who provided new referrals, multiplied by the percentage of consumers who bought more products (more account registrations). This is a useful way to track your loyalty programmes. It also gives important insights into which marketing activities can affect consumer behaviour. RPS calculates the behaviour, rather than the intention.
4. Finance App Performance
FinTech companies across the world are adopting mobile-centric marketing activities to tap into the growing consumer base of smartphone users. Over 61% of people use smartphones for their banking transactions and more than 48% use a dedicated finance app, says a recent report by Mobile Ecosystem Forum.
For all finance app companies, it is essential to understand how the mobile experience can be leveraged to enhance landing page conversion rates. Larger companies may find it expensive to suddenly include changes on their online platforms, in which case, few mobile-specific marketing schemes or landing pages may prove useful.
Some points to consider here are:
- Optimisation of landing pages for a smooth mobile-user experience.
- How easy is sales support or click-to-call activities on mobile?
- Healthy number of Daily Active Users (DAU), which gives an idea about how many customers have adopted the mobile site on a day-to-day basis.
- Mobile pages with the longest and shortage visit duration.
- Mobile friendly sites or a dedicated app; which is better?
- How effective are the push-notification campaigns; number of users who actually perform in-app transactions after a push notification.
- Percentage of users who quit the app during on-boarding process.
By focusing on these metrics, FinTech companies can gain a perspective on whether or not they are using the right marketing strategies. Innovative ideas come from the intent to satisfy consumer needs, and FinTech is all about rapid innovation.