How can financial loans acquire customers through Tencent social advertising?

Under the influence of new consumption concepts, the scale of China's consumer credit has grown steadily for several consecutive years. The banking industry has been making efforts to transform its retail business, and how to acquire customers online with the help of the Internet has become the key to this round of growth.

Retail loan business breaks through, personal loans gradually become a growth driver for banks

In recent years, China's personal loan market has shown amazing potential and its importance in the retail banking business has been growing. According to calculations by Ernst & Young based on the annual reports and prospectuses publicly released by listed banks, the total amount of personal loans at the end of 2017 increased by 21.11% year-on-year, accounting for 37.51% of the total loans, showing a sustained growth momentum for three consecutive years. Among them, joint-stock banks have the fastest growth rate.

The rapid growth of total business volume is inseparable from the increase in customer acquisition, and the Internet has become an important tool to drive customer growth.

Research on retail banking customer acquisition by consulting firm Accenture shows that online channels play a key role in financial users' evaluation and screening of banking services. Social networking sites rank second only to official websites with a share of 59%. Online has become one of the important scenarios for customers to access financial services.

The same trend is also reflected in the delivery of online advertising: in 2018, many banks have used Tencent social advertising as a stable customer acquisition channel, with the delivery volume increasing more than 3 times from January to December, and the scale of customer acquisition has increased.

Where are you from? Tencent Social Advertising Creates a "4+1" Solution for Banks to Increase Customers

The core demand of online customer acquisition for personal loans is to acquire new customers on a large scale and efficiently while controlling costs, and to reduce the bad debt rate.

In response to this, Tencent Social Advertising has provided a “4+1” solution for personal loan customer acquisition tailored for the banking industry, addressing the problem from four dimensions: data, traffic, optimization, and creativity.

1. Data capability: select qualified candidates and invest wisely

Risk control is the basic guarantee for all financial businesses. As the personal loan business expands rapidly, accurately judging users' loan demands and optimizing customer qualifications are actually "two sides of the same coin for personal loan acquisition" - the former allows banks to find people, and the latter ensures that they find the right people. Tencent has built an exclusive label system for personal loans through the Financial Cube. Under the premise of data compliance, it can, on the one hand, find the bank's target population, and on the other hand, optimize the qualifications of the population to reduce the risk of bad debts. At the same time, Tencent also provides a platform for crowd expansion to solve the cold start problem of advertising.

2. Traffic: Panoramic traffic, easy to reach

Tencent's huge user base is a strong support for the scale of online customer acquisition. Through its differentiated product layout, Tencent has fully covered the main online time and scenarios of Chinese netizens, especially in social, entertainment, tools and news. With an average of tens of billions of exposures per day and traffic resources covering different groups of people, Tencent can help the banking industry effectively reach various target customer groups.

3. Intelligent optimization: stable cost control and careful budgeting

In response to banks’ demands to control customer acquisition costs, Tencent launched an intelligent optimized bidding tool (oCPA/oCPM) to improve cost optimization efficiency. oCPA/oCPM can make refined bids for each exposure of each user, bid for high-value user groups, and avoid wasted exposure. At the same time, Tencent social advertising supports multiple promotion objectives to meet customers' different promotion demands.

4. Creativity: Combining movement and stillness, efficient implementation

Creativity is the bridge between advertisers and users. On the one hand, Tencent provides convenient tools for producing graphics, text and video materials to improve the efficiency of advertisers' creative output. On the other hand, Tencent also provides landing page website building tools, and customized templates make it easy to highlight the benefits of bank loan products and improve user conversion rates.

In addition to the four major capabilities, Tencent Social Advertising has also cultivated more than 10 mature bank agents to provide banks with a full set of standardized services and create a complete "4+1" solution.

Four major customer acquisition links to ensure that personal loan conversion is seamless

In 2018, many banks including Ping An Bank, China Merchants Bank, Xinwang Bank, Baixin Bank, CITIC Bank and Pudong Development Bank have started cooperation with Tencent. The "financial institution + media platform" cooperation model not only magnifies the professional advantages of each party, but also explores more new ideas for customer acquisition and conversion in the banking industry.

Tencent Social Advertising has built four new links that are suitable for various online customer acquisition processes of banks based on the different conversion demands of personal loan products.

Link 1: Advertising-List Collection-Telemarketing

A certain bank acquires customers through the telemarketing link on Tencent social advertising. After users click on the advertisement, sales leads are collected through the web page (H5), and then the bank conducts follow-up telemarketing. With the help of Tencent data, the bank found people with high qualifications and improved the quality of the list from the source. Intelligent optimization continues to optimize customer acquisition costs. The number of loan applications has increased significantly in the three months of cooperation, and the cost is in line with customer expectations.

Link 2: Advertisement-Fill out the form-App download

With the help of data capabilities, Tencent Social Advertising helped a bank find people who met the eligibility requirements for specific loan products, and covered multiple advertising spaces such as WeChat Moments, Tencent News information flow, and QQ Space information flow in terms of resources, so as to reach as many people in need of loans as possible. At the same time, the bank is also bold in experimenting with creativity, following industry material trends, polishing popular materials, and improving advertising competitiveness. The bank also enabled oCPM intelligent optimization in WeChat Moments to control customer acquisition costs and avoid wasting advertising budget. In terms of results, we finally achieved excellent results: the average CTR was more than twice the average data of the circle of friends; the average establishment cost was far lower than expected; and the number of applications increased steadily.

Link 3: Advertisement-Mini Program-Loan Application in Mini Program

Compared with H5, the experience of mini programs is more lightweight and can be considered as one of the attempts to acquire customers online for loans. A certain bank fully utilizes the advantages of WeChat advertising directly connected to mini programs, explores the mini program customer acquisition model, guides users to submit advertising applications within the mini program, and uses the mini program to improve the experience and customer acquisition efficiency.

Link 4: Advertising - Adding followers to the official account - Guiding conversion within the official account

More and more banks hope to attract customers to their official accounts and achieve long-term management of user lifetime value through long-term, continuous and effective communication. In response to this, Tencent, in cooperation with a certain bank, provided a variety of advertising formats including Moments, official accounts and mini-programs to adapt to the official account promotion goals. The bank has made public account following a long-term delivery target. After clicking on the text, users will be directly redirected to the public account and a template message will be triggered to further guide user conversion. The bank has accumulated a large number of potential customers in this way, and has used long-term communication to improve conversion rates and cultivate a base of repeat loan customers.

Tencent Social Advertising Bank’s “4+1” solution has become the best helper for banks to break through new growth points and high-quality development. Strengthening online customer acquisition and seizing new growth opportunities in personal loans are also the only way for the banking industry to move into a new era and achieve efficient transformation.