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The Biggest Digital Marketing Mistakes FinTech Startups Make and How to Fix Them

Grace Odofin

WSI, Social Media Executive
Digital Marketing Mistakes FinTech Startups Make

Grace Odofin

WSI, Social Media Executive

The landscape of financial technology (FinTech) is constantly growing, especially in Nigeria. Startups in this space face a set of challenges, one of which is marketing their business effectively. With the rise of digital marketing, online presence is more crucial than ever. However, in today’s digital world, having a great product or service is only half the battle.

With so many new players entering the market, it’s more important than ever to stand out from the crowd and attract the right kind of attention.

Unfortunately, many FinTech startups make the same mistakes with their digital marketing strategy, which can harm their growth. In this article, we will highlight the six (6) biggest digital marketing mistakes that FinTech startups make and provide actionable tips and strategies for fixing them. Whether you are a startup founder, marketer, or business professional in the FinTech industry, this piece will help you improve your digital marketing efforts and create a strong plan for sustainable growth.

The six major mistakes that FinTech startups in Nigeria tend to make in their digital marketing efforts

  1. Not having a clear value proposition
  2. Neglecting SEO
  3. Not leveraging Social Media
  4. Ignoring email marketing
  5. Not measuring results
  6. Focusing too much on the acquisition and not enough on retention

Mistake 1: Not having a clear value proposition

Your value proposition is what sets you apart from your competitors. It makes your product or service unique and valuable to your target audience. Without a clear value proposition, it is hard to convince potential customers to choose your FinTech startup over others. To avoid this mistake, make sure your value proposition is clear and concise and focuses on the benefits of your product or service and how it solves your customers’ pain points.

Actionable tips and strategies:

  • Use customer feedback to refine your value proposition
  • Highlight the unique features of your product or service
  • Use clear and concise language that speaks directly to your target audience

Mistake 2: Neglecting Search Engine Optimization (SEO)

SEO is critical for driving traffic to your FinTech startup’s website. Without it, potential customers may not even know your business exists. Unfortunately, many FinTech startups neglect SEO, which can hurt their digital marketing efforts because potential customers won’t be able to find them online. According to Search Engine Journal, the first organic result in Google Search has an average click-through rate of 28.5%. To avoid this mistake, use SEO by analyzing keywords, adjusting your website’s content and format, and setting up strong backlinks. Explore tools like SEMRush to uncover keywords and phrases relevant to your target audience.  

Related: 5 Must-Have SEO Strategies for Fintech Companies in Nigeria

Actionable tips and strategies:

  • Conduct keyword research to identify the keywords your target audience is searching for
  • Optimize your website’s content and structure to improve search engine rankings
  • Build high-quality backlinks to improve website authority and search engine rankings

Mistake 3: Not leveraging social media

Social media is a powerful tool for FinTech startups to engage with their target audience and build brand awareness. Unfortunately, many FinTech startups neglect social media, which can harm their digital marketing efforts. According to a survey by Hootsuite, over 4.74 billion people worldwide use social media. To leverage social media, create a plan, choose the right platforms for your target audience, and engage with your followers.

Related: 5 Mistakes Social Media Marketers Make

Actionable tips and strategies:

  • Create a social media plan that outlines your goals, target audience, and content strategy.
  • Choose the right social media platforms for your target audience.
  • Engage with your followers by responding to comments and messages.
  • Use social media to build customer relations and establish your brand as a thought leader in your industry.

Mistake 4: Ignoring email marketing

Email marketing is a powerful tool for FinTech startups to build relationships with their target audience and drive conversions. Unfortunately, many FinTech startups neglect email marketing, which can harm their digital marketing efforts. According to a survey by Campaign Monitor, email marketing has an ROI of 4400%. To avoid this mistake, create a strong email list, segment your audience, and use personalization to increase engagement.

Actionable tips and strategies:

  • Create a strong email list by offering a lead magnet or incentive.
  • Segment your audience based on interests and behavior.
  • Use personalization to increase engagement and conversions.
  • Use A/B testing to test different subject lines, content, and calls to action. 
  • Use analytics tools to measure the success of your email campaigns and make improvements.

Related: The Dos and Don’ts of Email Marketing for Fintech Companies

Mistake 5: Not measuring results

Measuring digital marketing results is crucial for FinTech startups to understand what is working or is not working. However, many FinTech startups neglect measurement, which can hurt their growth. According to Hubspot, over 75% of marketers report how their campaigns impact revenue. Set SMART goals for your FinTech startup’s digital marketing campaigns.

Actionable tips and strategies:

  • To measure results, set specific goals for your digital marketing efforts.
  • Choose the right metrics to track, such as website traffic, leads, and conversions.
  • Use analytics tools like Google Analytics to track your progress and improve campaigns.

Mistake 6: Focusing too much on the acquisition and not enough on retention

Acquiring new customers is essential, but retaining existing ones is equally crucial for the success of your FinTech startup. Focusing too much on the acquisition and not enough on retention is a common mistake that can hurt your digital marketing efforts. According to retention science, increasing customer retention rates by just 5% can increase profits by 25% to 95%. By balancing acquisition and retention efforts and providing exceptional customer service, you can build a loyal customer base that will help your business grow.

One way to improve retention is by creating a loyalty program. Offer incentives to customers who use your product or service regularly or refer new customers to your business.

Actionable tips and strategies:

  • Create a loyalty program
  • Segment your audience
  • Respond promptly to customer inquiries and complaints, and go above and beyond to ensure their satisfaction.
  • Focus on building relationships
  • Use customer feedback to improve your products and services continually.
  • Measure retention metrics like conversion rates, customer lifetime value, churn rate, and repeat purchase rate.

In conclusion, digital marketing is a critical component of any successful FinTech startup, but it is easy to make mistakes that can hold you back. By avoiding the six common digital marketing mistakes outlined in this article and implementing the actionable tips and strategies provided, you can create a digital marketing plan that helps your business grow. Digital marketing is constantly changing, so be informed about the latest trends, techniques, and industry news to stay successful.

If you want to ensure that your FinTech startup avoids these common digital marketing mistakes and creates a successful digital marketing plan, consider partnering with WSI Axon. Our experienced team of digital marketers can help you develop and execute a customized strategy that aligns with your business objectives and maximizes your ROI. Our wide range of services, including SEO, social media marketing, email marketing, and analytics, can help you get ahead of your rivals and reach your objectives. Contact us today to learn more about how we can help your FinTech startup thrive in the digital world.

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Oti is a vastly experienced digital media and marketing professional with over 10 years of industry experience. He has worked across Agency, Brand, Publisher and Marketing Technology sides of the industry in various capacities.

Driven by a strong commitment to continuous innovation, Oti has managed so many successful digital projects across Africa and Europe for brands like Coca-Cola, Nestle, Guinness, Kellogg’s, EA Games, Sony Entertainment, etc., and advises senior management of global brands on data-driven marketing and digital transformation.

Consumer insights in marketing: Oti

Oti currently heads Product at Terragon Group, Africa’s leading data aggregation, enrichment, and activation company, where he is responsible for developing innovative data-driven marketing solutions for SMBs and Enterprises across Africa.

Oti is the current President of Association of Digital Marketing Professionals (ADMARP), the foremost professional body for digital marketing practitioners in Nigeria. He is also a communications consultant to the African Union in areas of youth engagement and digital interactions. A known public speaker, teacher and trainer, Oti has facilitated several conferences and digital events, and was recognized by Marketing Edge Magazine as an Outstanding Digital Marketing Personality of the year 2021.