Credit Card Marketing: Bank of America

According to an estimate, an average person in the United States uses three credit cards,
which reflects the high demand and popularity of credit cards in America (Corporate Finance
Institute, 2020). People are excessively replacing cash by credit cards as a mode of payment
because of the convenience. Given a huge number of credit card issuers in the United States,
it is important for Bank of America to use effective marketing strategies to maintain a
competitive position in the banking industry.
Promotion
Since this is the era of digital technology, the focus of the marketing team should be on social
media marketing. These social channels are highly effective for introducing a product and
judging the response of the people. Collaboration with social media influencers on Twitter,
Instagram, and Facebook is also an efficient method of publishing content related to credit
card marketing. Creativity is an important factor to attract and engage customers in the
message that has been communicated.
The most important thing about this product is that its marketing should be highly
personalized and targeted. Since Bank of America has already started issuing contactless
debit and credit cards, it is important to highlight these facts while promoting the new credit
cards (Toplin, 2018). Terms like “secure” and “safe” payments are very significant selling
propositions when it comes to online, as well as offline, promotions. However, the company
should keep in mind that different credit card products should be promoted in separate
messages (Toplin, 2018). Adding all the information in a single message will only dilute the
importance of unique features that different cards hold.
A recent surge in the usage of debit cards has been seen across the country due to some of the
drawbacks of credit cards such as the risk of overspending and the need to pay bills. To retain
the existing customers and attract debit card users, Bank of America should take initiatives
like auto-pay options, customized spending-limits, and, most importantly, consumer
engagement (Toplin, 2018). All of these initiatives are necessary to educate the potential
users about the benefits of using credit cards. Moreover, it is also necessary to ensure that the
customers are also aware of the potential risk. Highlighting the risks and the related strategies
in the marketing message is important to gain the trust of potential customers.
As a part of building trust, Bank of America must ensure its customers with protection
against any vulnerability or fraud. Credit card customers take great interest in companies that
provide the most profitability and a backup plan for any such unfortunate incident. The
promotional message should contain keywords and features like “100% reimbursement in
case of fraud” or “guaranteed protection” to erase any doubts about the company that might
rise.
Apart from usual methods like email tracking, Bank of America can also invest in local
search engine optimization to attract more customers through grocery shopping rewards etc.
Carefully chosen keywords like shopping, supermarket etc. can readily engage customers
who prefer online and offline shopping through credit cards.
People
Employees or staff of an instruction reflect its core values and commitment to the customers.
Therefore, it is necessary that features of the products/services are properly communicated
properly to the customers (Mbama & Ezepue, 2018). The best strategy is to attend to every
customer that has applied for a particular type of credit card. Turning down any application
without providing a good alternative is a very risky approach and can considerably reduce the
overall consumer base.
Furthermore, Bank of America must make its application process as easy and convenient as
possible. Employees must make sure that the customers, who put their time and money for
getting their application approved, are treated with the best possible customer service
(Mbama & Ezepue, 2018). Meetings and staff training are necessary so that every employee
knows their responsibility and does a fast and reliable job. These activities also enable
employees to answer any question from the customers quickly and satisfy them with the right
information.
Centralized communication among different teams is extremely necessary to execute a
successful marketing and promotional campaign (Mbama & Ezepue, 2018). The frontline
employees should actively engage with the teams responsible for delivering promotional
messages on various platforms. This is especially important from the perspective of social
media marketing. For instance, employees promoting and sharing their company’s online
content can considerably increase its reach (Mbama & Ezepue, 2018). Customers also prefer
to gather information through these online platforms before visiting the banks; therefore,
Bank of America should increase its online presence and employ dedicated and hardworking
employees to answer customer’s queries.
Although it is necessary to provide consistent information through promotional channels, the
employees of the bank must also be able to educate the potential and existing clients
regarding financial literacy. Bank of America has already invested in such an initiative with
the help of Khan Academy, where customers can watch video tutorials for any kind of
relevant information (Bank of America, 2020). The same strategy can prove to be extremely
useful during face-to-face dealings with the customers.
References
Bank of America. (2020). Khan Academy Financial Education Partnership Videos. Retrieved
15 August 2020, from https://bettermoneyhabits.bankofamerica.com/en/khan-academy-
partnership
Toplin, J. (2018). The card rewards strategies issuers can use to win top-of-wallet status
while maximizing returns. Retrieved 15 August 2020, from
https://www.businessinsider.com/07-20-2018-consumer-cards-report-a-2018-7
Mbama, C. I., & Ezepue, P. O. (2018). Digital banking, customer experience and bank
financial performance. International Journal of Bank Marketing.
Corporate Finance Institute. (2020). Credit Card Industry Analysis - Overview, Market
Dynamics, Costs. Retrieved 15 August 2020, from
https://corporatefinanceinstitute.com/resources/knowledge/credit/credit-card-industry-
analysis/