The Value of Digital Marketing for Payment Solution Companies
With over half of UK businesses looking to change payment solutions in the next six months, digital marketing can help brands get in front of the right people at the right time with the right message.
More and more companies are using payment solutions as the pandemic has accelerated the shift from traditional banking to digital services. But as demand has risen, so has the number of fintech start-ups, with European fintech companies increasing from 3,581 to 7,385 in the past two years alone. As a result, fintech companies are struggling to differentiate themselves from the competition in an increasingly saturated market.
At Tug we’re experts in SaaS marketing. We’ve worked with dozens of SaaS brands over the years and helped them drive real business advantage through digital marketing. We surveyed UK businesses about payment solutions to provide insights for payment solution providers on what their customers are looking for.* With these insights we can tailor marketing strategies to help SaaS companies get in front of the right people at the right time with the right message.
The survey found that over half (53%) of UK businesses believe the right payment solution is critical to the success of their business – allocating on average £64,000 to their payment solution every year. However, 90% of companies are experiencing issues with their current solution. In fact, over half (54%) of UK businesses plan to change their payment solution in the next six months.
We also found that 1 in 10 decision-makers don’t feel confident in identifying the right payment solution for their company. There is a huge opportunity here for payment solutions companies. If they boost their online visibility and drive brand awareness through digital marketing channels they will be able to stand head and shoulders above the competition and attract new business.
*308 professionals in medium to large companies who have a say in the decision-making process regarding payment solutions. Fieldwork took place from 19 – 26 February 2021.
Only 1 in 5 companies are fully satisfied with their payment solution
Only 1 in 5 companies are fully satisfied with their payment solution, with 27% indifferent or dissatisfied. Just 1 in 10 companies have no issues with their current payment solution.
Surprisingly nearly a fifth of companies (17%) reported they were actually losing revenue with their current payment solution. This was a key issue for companies in the current economic uncertainty, and something the payment providers need to address for both new and existing customers.
Other key issues companies face with their payment solutions are:
Poor customer service and support (37%)
Prone to human error (33%)
Lacking innovation (28%)
Lacking technical training (25%),
Over half of companies are planning to change provider in the next 6 months
Another key finding was that over half of companies (54%) are already looking or plan to change their payment solution in the next six months.
This represents both an opportunity and a potential risk to payment solution companies. It’s a huge opportunity for them to gain new business by targeting those that are dissatisfied with their current payment solution, but it also highlights they could be at risk of losing existing customers who are dissatisfied with their current service.
Almost a fifth of companies were looking to change next year, and a further 12% in the next 2-3 years. In fact, only 13% of companies had no plans to change their payment solution, signifying a lack of customer loyalty when it comes to payment solutions. See our four key points below for how to address this.
Over a third of companies’ budget is available for payment solutions
The opportunity to target those companies looking to change providers is huge. Over a third (35%) of companies’ annual budget is available for a payment solution, equating to an average of around £64,000.
With over half (54%) of UK businesses planning to change their payment solution in the next six months, payment solution providers could potentially miss out on over £11m worth of revenue in the next six months if they are difficult to find online.*
*Of the 54% of respondents surveyed who are currently changing or looking to change their payment solution in the next 6 months, the combined annual budget available for a payments solution is £11,089,998
1 in 10 decision-makers aren’t confident in identifying the right payment solution for their company
The problem payment solutions companies face in maximising on this huge opportunity is targeting the people who matter with the right messaging. 10% of decision-makers don’t feel confident identifying the right payment solution. In fact, over a quarter (26%) of decision makers admitted that they are confused by the options, and over one in five (22%) have difficulty understanding how payment solutions work.
Difficulty identifying the right solution
34% of decision-makers admitted they experienced difficulty in identifying the best payment solution. Lack of differentiation both of payment solutions (24%) and brands (19%) were identified as barriers, showing that payment solution brands need to work on defining their brand messaging in order to cut through the noise and attract new business.
Difficulty navigating payment solution websites was also an issue for nearly one in five (19%) decision-makers. This is a big issue for brands, as 90% of B2B decision-makers will research business purchases online before making a decision, and identifies a need for payment solution brands to improve their online experience for prospective customers.
Time-consuming research process
Decision-makers are time poor, with almost a third (31%) saying it takes a lot of time to find the right payment solution, and nearly one in five (19%) saying that they don’t have enough time available to research the best payment solution.
Helping the decision-makers to find the information they need quickly and easily through channels such as search and paid media will aid them in the decision-making process and make you stand out from the competition.
How to get your brand in front of the right audience
We know that when looking for a new payment solution, decision-makers use a wide range of resources to find information, but the question is how does this help brands get in front of the right audience?
The most widely used sources are financial and IT media at 49% and 46% respectively, but online search was a close third at 41%. Peer recommendations were also valued highly (40%), as well as digital advertising.
Decision-makers were more than twice as likely to look to digital advertising than print, with only 15% of respondents saying they look to print for information, compared to 31% for digital advertising. Over 40% of decision-makers use online search as an information source.
The rise of financial influencers or “finfluencers” was also evident, as a quarter (26%) of decision-makers now use financial blogs and influencers when looking for information on payment solutions.
Payment solution companies can utilise these channels to raise awareness of their brand among decision-makers through digital marketing.
Sell the solution, not the software
One of the mistakes many software brands make is focusing their marketing on selling the software and its features, rather than the solution it offers to the end user. Decision-makers care less about how the software functions, and are more concerned about how it will make their lives easier and improve their company’s bottom line.
The most important criteria for a payment solution are fitting to the company’s needs (48%) and budget (46%). Reducing human error, good customer service, understanding how it works, using the latest technology, automation and innovation are also important, with over a third of companies stating these are criteria they consider when choosing a payment solution.
These are all areas you need to factor into your marketing strategy - show potential customers how your payment solution company overcomes these issues to make their lives easier and their experience using your product easy and painless.
5 steps to digital marketing success
Are you ready to take advantage of the huge opportunity available to payment solution brands? Here’s a checklist to get you started on improving your digital marketing to attract decision-makers to your offering.
1. Convey the right message
Instead of selling your software, focus on the benefits it can offer to the end user. Show decision-makers how your product meets their needs. For example how is your payment solution as customisable to fit their business? How can it reduce human error and offer great customer support?
2. Use the right format
We know that decision-makers are time poor, so tailor your messaging to give them the answers they seek in easy-to-follow short format content. Short video, quick to understand graphics, easy to surface bite sized content. This is especially key when discussing your product features and competitor comparisons.
3. Use the right channels
Don’t focus all your effort in one place. Create a broad range of content tailored for the channels that decision-makers value and visit. Digital adverts, SEO and finfluencers should all be a part of your marketing strategy to ensure the right people will discover your business in the right place with the right messaging.
4. Build your brand
With one in five decision makers identifying lack of brand differentiation as a key issue in choosing the right payment solution, it’s clear that marketing isn’t all about direct response. Branding should be a key part of your marketing strategy, to make your product stand out from the crowd.
5. Hire a digital agency
Digital marketing is a huge opportunity, but it’s not always easy to go it alone. Enlist a team of experts who can guide you to success. Here at Tug we have years of experience helping SaaS brands improve their digital marketing. Watch our video tutorial on improving your SaaS marketing and get in touch with Tug today.