Affiliate marketing programs have become more prevalent, especially in the global Fintech industry. This results-based Fintech Advertising tool has proven to be an excellent way for a business to reach out to a previously untapped consumer base and massively broaden its reach.
The number of affiliate marketing service providers has grown substantially to meet the rising demand from multiple industries wishing to incorporate online advertising into their various initiatives.
What’s the difference between affiliate and referral marketing initiatives?
The growth of the customer base is a popular motivation for both referral and affiliate marketing strategies.
Both of these schemes, however, have slightly different technological implementations and underlying strategies.
Marketing Via Referrals
In terms of referral programs, the business is effectively extending its scope across its existing customer base.
The service provider helps existing customers to advertise the business to their loved ones by providing unique bonuses and discounts.
Referrals in Marketing For Fintech Companies are typically guided by two factors:
– the desire to help a neighbor, or – the desire to change one’s own situation.
Likewise, the incentives that the company gives new customers who buy its services, which are made accessible to either new clients or the consumer who referred them to the retailer.
Affiliate Marketing
Fintech Advertising through Affiliates is often used to increase a company’s client base, although it does not include existing clients. Instead, the service provider hires an affiliate, a third party who is compensated to assist the business. Affiliates are usually paid when a new customer signs up to purchase the provider’s goods, based on the amount of traffic they generate, or on a monthly basis.
Why Is Affiliate Advertising Advantageous To Fintech Firms?
Financial technologies are continually evolving and increasing, and every new competitor into the market faces fierce competition. With so many different FinTech service providers now selling their products to customers all over the world, every FinTech company’s success hinges on a strong Fintech Marketing strategy.
Affiliate marketing is a relatively new sector compared to the FinTech industry, however over the last few decades; the two have developed a symbiotic relationship and are almost associated with one another.
Financial services firms have also learned that online advertising can generate income that is more massive for new clients at a lower cost than traditional marketing strategies. Furthermore, by using the resources of partners, large and small tech businesses can gain access to a variety of different platforms for product promotion.
One would believe that affiliate advertisement is most successful and widely used by FinTech start-ups looking to gain traction in the sector, but this is not the case. The example of Revolut, one of Europe’s largest FinTech companies, demonstrates the opposite.
Final Thoughts
Our society is becoming digital, particularly in light of the global pandemic outbreak and the recession regulation measures in place. Because of the growing popularity of online goods and services, the need for a FinTech approach is likely to diminish in the coming years.
Furthermore, as more people work in the virtual environment, it’s only normal that one’s clientele will grow as well. Affiliate promotion seems to be the most straightforward, cost-effective, and efficient method of doing so. Traditional marketing methods, on the other hand, are essential for establishing a business on the market and are unlikely to be completely abandoned in the near future. Furthermore, affiliate marketing services can be found to achieve the best results when combined with other forms of advertisement and branding.
Find more information relating to fintech advertising, and marketing for FinTech companies here.
