How to reduce your fintech CAC with personalization

PersonalizationBy Juliana Amorim and Mariana Bonanomi

Fintechs offer a variety of services, promotions, and content to different personas on their sites. Delivering the right message to one audience without negatively affecting the experience of others can be challenging.

Some businesses use product recommendation, social proof, and urgency triggers to address this issue, but these strategies are not sophisticated enough to engage increasingly demanding users. Relying solely on them might mean missing out on potential opportunities to reduce CAC.

This blog post will provide you with personalization ideas to go beyond the basic CRO tactics. Keep reading to learn more.

Table of contents

Reduce CAC with personalizationCreditas improved their results, and you can do it too. Read this case study to learn more about fintech personalization.
fintech personalization driving conversions

How to use personalization in financial services

Real-time personalization solutions allow you to deliver highly targeted content to each of your personas individually, accelerating decision-making, purchasing, and customer loyalty processes. However, with so many ideas and areas of your site where personalization can be applied, it can be difficult to decide where to start. At this stage, mapping the navigation flow and identifying the main factors that cause users to abandon your site is crucial.

The following ideas will help you determine your initial strategies:

Fintech personalization to create a good first impression

Capturing the user's interest at the beginning of their browsing journey through your site is crucial for increasing the chances of success. But how do you know which message to use when each user has different interests and needs?

Personalization can turn all pages of your site into targeted landing pages. By identifying which interests brought users to your brand, you can align your communication with their context.

For example, if I'm looking for no-annual-fee credit card options and visit a digital bank's site, does it make sense for them to show me the advantages of a digital account or vehicle financing rates? Ideally, they should present all the benefits of their credit card, going beyond just the absence of annual fees. Tracking this history can be as simple as analyzing URL parameters from campaigns, the content and/or URL of the referral page, search terms, etc. Additionally, you can personalize content based on geographic location, device used, or browsing history (for returning users).

Fintech personalization to promote relevant content

Beyond the first impression, it’s important to continue personalizing the experience throughout the navigation. The more you learn about users, the more insights you gain to identify their interests. What actions do they perform on your website? How long do they spend on a particular page? Did they read that infographic you published? All this can be used to drive personalized content.

You can create segmented images and copies to impact users who visit your website but don’t convert right away, using remarketing campaign segments. For example, if you have a credit company and allow users to perform loan simulations on your website, you can change your banner according to the simulations they did. If a user performed a loan simulation in which they offered their house as collateral, your home banner copy could be “We’re happy you are back! Use your house as collateral to have the lowest interest rate.". Learn how this Brazilian fintech got an 18% increase in conversions with remarketing personalization.

With this type of approach, you can ensure that the best offers are displayed to each user to encourage product discovery, facilitate financial education, and reduce site abandonment.

Fintech personalization for clients

Personalization strategies shouldn't only impact your leads. When a lead becomes a customer, they interact with you even more often. Take every opportunity to engage and retain them permanently.

Client-focused personalizations are a great way to create a community of advocates who will take your product further than marketing campaigns alone can.

In this case, you can work with information such as the client's age in the system, recent actions within their accounts, asset value, the products they use, etc.

Create clusters for long-time subscribers, separating them from new subscribers’ segments, free-trial users, and so on. Each customer will be interested in different offers based on how long they have been subscribers.

If someone is new to your platform and their trial is wrapping up, concentrate on highlighting aspects that demonstrate why they should extend their subscription period. But if a client has been using your product for a while, it might be interesting to recommend your more sophisticated features for an enhanced experience.

Fintech personalization based on user location

If you have clients in different regions, you should avoid communication flaws. Many websites display offers that only users from specific cities are eligible to benefit from, causing frustration among the ones who are not.

With personalization, content can be dynamically changed according to users' locations. Your site will display promotions focused on specific countries, cities, or states, avoiding generic messaging.

If you have a credit loan fintech, you could dynamically highlight how your interest rate is the lowest in each state, for example.

This way, users from Utah will visualize a home banner copy that reads “The lowest interest rate in Utah”, while for users from California, it will be “The lowest interest rate in California”.

If your business is a govtech that helps users do their vehicle taxes, you could use personalization to show each state's different due dates dynamically.

You can also adapt communication to suit local expressions and even slang. But remember: beware of stereotypes!

Fintech personalization to avoid being pushy

Randomly offering products no longer makes sense, given the wealth of information available about a customer.

Besides the information in your system about the products the user currently uses, you can also leverage CRM data to analyze their responses to previous offers. For instance, if I’m already a customer of your bank and have declined an investment-related offer, how much sense does it make to keep pushing such communications? These data help narrow down the user's interests and avoid irrelevant offers.

More importantly, identify the connection between the offers you want to make and the actions they take when using your product. What is the ideal moment to present each offer? Personalized up-sell and cross-sell offers should be subtly integrated into the customer’s experience and activities, significantly increasing the chance of interaction as you intend — and avoiding frustrations.

From leads to clients

Personalization strategies in financial services are essential for a sector that offers complex products adaptable to different personas. Communication possibilities are vast, and it can often be challenging for users to find what they need on their own.

Even after conversion, providing better experiences to clients helps with retention and the acquisition of new leads.

We hope you found this guide enlightening and that it inspires you to revolutionize your user journey. If you want to give personalization a go today, sign up and create your free account at Croct.

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