Cloud solutions changed how we organize work today, including critical marketing activities. There’s a wave of transitions from on-premise solutions to cloud infrastructures in various industries.
Should the banking sector be one of them? That depends.
Digital marketing is a must in today’s climate, and the banking industry is no exception.
You can choose to transfer your operations to the cloud or carry them out through on-premise marketing automation software only when you’re familiar with the benefits and downsides of each.
That’s what we’ll discuss in today’s article at length. From defining on-premise and cloud-based marketing solutions to comparing both, we’ll help you draw a conclusion about which is better for your institution.
If you’re a banking professional, seeking ways to improve and empower marketing, keep reading!
What is On-Premise Marketing Automation Software?
On-premise software has been around long before the cloud became a thing. There are unlimited resources you can leverage and valuable knowledge to gain when using on-premise marketing automation software.
Using an on-premise solution means installing software locally and relying on your company’s servers and storage to run it. In comparison, cloud-based marketing solutions operate in the cloud – an online storage space and servers you access remotely. That’s where some of the key differences between the two options come from:
| ON-PREMISE MARKETING SOFTWARE | CLOUD-BASED MARKETING SERVICES |
| You own the servers on which the software runs. | You “rent” resources, services, and space on a provider’s servers. |
| Resources are maintained and attributed locally. | You might share resources with other clients of the same cloud. |
| An in-house team ensures security, vital for handling personal information. | The security of your operations depends on third-party administrators. |
| You have complete control over maintenance and the scalability of resources. | You rely on third-party support, and scalability can be rapid and costly. |
Cloud-based services have blown out of proportion over the last couple of years, with steady growth in adoption across industries. But that doesn’t mean they’re the most suitable option, especially in the banking industry.
While the cloud is cheaper to use and maintain, on-premise marketing automation software offers other benefits which are more suitable for banking institutions. We’ll focus on those below.
Benefits of On-Premise Marketing Automation Software for Banks
Using on-premise marketing automation software for banks offers you the ability to provide the best customer journey with the least risk for privacy. Here are the key benefits you can look forward to when choosing an on-premise solution:
- Increased data security and control over data – cloud-based solutions are proven to be more vulnerable to third-party meddling because access is remote. On-premise software gives you higher control over data and improves security simply because access is local and restricted only to authorized personnel.
- Customization and scalability – on-premise marketing software for banks gives you more flexibility when you grow and expand your operations. Instead of asking cloud admins to upgrade your storage, add features, and improve server performance and availability, you can upgrade your local infrastructure whenever and however you want, adjusting for growing business needs.
- Improved data privacy and compliance with regulations – you boost data privacy with on-premise software, which is crucial for following regulations. The banking industry is heavily regulated, and you want to be solely responsible for compliance. When using on-premise solutions and local resources and data storage, you can keep all sensitive information inside your company and ensure you’re running a compliant infrastructure.
Those benefits have kept on-premise marketing software as the preferred solution for banks despite the rise of cloud-based options. You want to choose a robust and reliable option, to make the most out of on-premise software.
Below, we’ll cover the essential features you need to make investing in on-premise marketing automation software worthwhile.
Features of On-Premise Marketing Automation Software
Despite the heavy regulations in the banking industry, digital marketing must be part of your operations. Using reliable on-premise marketing automation software can help you improve your results while staying compliant with regulations. Here are the key features you need to achieve that:
A. Segmentation and personalization capabilities
Robust on-premise marketing automation software comes with features that track user behavior. From how people interact with ads to their actions upon receiving emails and SMS – banks can seriously benefit from learning more about their clients.
The customer journey vastly differs from other cases, when talking about something as specific as banking products. People are highly sensitive when it comes to their finances. That’s why creating a highly personalized experience based on the customer segments you can create helps you build trust and position yourself as a reliable financial partner.
B. Automated campaigns and workflows
The banking industry moves at lightning speed, given technological advances and economic conditions. Your clients’ circumstances can change in a heartbeat, affecting their relationship with the bank.
Automated campaigns and workflows help your marketing operations in two ways:
- Save you a lot of time on repetitive marketing tasks like starting or stopping campaigns, sending emails, and reaching out to clients in general.
- Help you stay flexible and quickly adjust to changes in customer behavior. That’s because workflows and automated campaigns trigger only after clients take specific actions.
C. Advanced analytics and reporting
Data-driven marketing matters even more in the banking industry. Clients take more time when considering purchasing financial products and services because this affects their hard-earned money.
When you use advanced analytics through a comprehensive dashboard and aggregate all reports, you can see how your business is developing. At a glance, you’ll be able to see which are the best-performing products and services, what your clients want, and what might be hurting your reputation and your bottom line as a bank.
Additionally, advanced reporting gives you access to actionable insights in two key aspects:
- Customer behavior – get real-time data on customer actions at different touchpoints with the business. From email marketing to their website activity – learn their patterns and create high-value customer segments and buyer profiles.
- Campaign performance – explore campaign performance at a glance and in-depth. Learn how clients convert – do they call in after getting an email offer, do they request consultations after viewing an ad, how do they respond to cold calls, and so on.
D. CRM integration
When you integrate your CRM with on-premise marketing automation software, you can start reaching out to more of the right people at the most beneficial time. Aligning sales and marketing, especially in the banking industry, can have a massive impact on results.
That’s because you combine the knowledge of clients with personalized messages and offers. When it comes to banks, personalization shows clients you care about their needs, but most importantly – their financial well-being.
When you make meaningful offers, you create long-lasting profitable relationships and nurture repeat purchase behavior. Clients will learn to trust your services and seek value from you instead of going to the competition.
We’ll see real-life examples of how banks achieve that synergy in the next section!
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Real-life Examples of Banks that have Implemented On-Premise Marketing Automation Software
· Case studies of banks that have successfully implemented on-premise software and the results they have seen
· Statistics and data that demonstrate the effectiveness of on-premise marketing automation software in the banking industry
If you’re still wondering whether using on-premise marketing automation software is worth it, let’s make a side-by-side comparison with cloud-based solutions in the next section!
Comparison of On-Premise & Cloud-Based Solutions
When making the final decision, you’ll have to take into consideration your business needs, available resources, and goals. Both options have benefits and downsides alike. Whichever you choose, you’ll be making trade-offs. To give you a better perspective on some key differences, here’s a side-by-side comparison:
| ON-PREMISE SOFTWARE | CLOUD-BASED SOLUTION | |
| Cost & Scalability | It has higher up-front costs and requires additional investments when the business scales up. On the other hand, you can be precise about how many resources you need and get complete control over costs. | A cheaper option compared to using a solution on the premises. On the other hand, rapid scalability might balloon costs because the bigger your storage needs grow, the more you’ll be paying for the cloud services. |
| Implementation & Maintenance | Requires you to have dedicated IT and support teams to cater to the needs of the software and manage your infrastructure. On the other hand, this gives you total control over maintenance, and you can have instant reaction time. | Comes with dedicated support and maintenance, reducing workload and costs for in-house teams. At the same time, you rely on third parties in case of emergencies and whenever you need expert support. |
| Integration & Customization | You handle on-premise software, which gives you better customization options. That way, you can better cater to more niche needs and requirements. | Cloud-based solutions offer less flexibility – you get the same off-the-shelf software as everyone else, and customization options are limited. |
When you consider concerns related to cloud service security (even though improvements happen daily) and the budget you can set aside for marketing, you’ll be able to make the best choice for your company.
Remember one crucial thing – make that choice with the client in mind, ensuring their privacy while providing the best customer experience possible.
Let Us Help You
On-premise marketing automation software is still the leading MarTech in various industries, including banking. Even though cloud-based solutions are making waves and the transition continues, they’re far from providing the security and reliability associated with on-premise alternatives.
If that matters to your company, then you must consider on-premise software. Through it, you can achieve:
- the best possible customer experience for your clients;
- beneficial relationships and loyal customers;
- maximum control, flexibility, and customizability.
To overcome the challenges in the banking industry, consider on-premise marketing automation software like VibeTrace as the way to approach and execute your marketing efforts. Contact our representatives and get expert advice on how you can proceed!
Further Reading
On-Premise Software, https://softco.com/glossary/on-premise/
What is Cloud Marketing?, https://www.techfunnel.com/martech/cloud-marketing/
On-Premises Vs. Cloud, https://www.morefield.com/blog/on-premises-vs-cloudGartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023, https://www.gartner.com/en/newsroom/press-releases/2022-10-31-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-reach-nearly-600-billion-in-2023
