Bank on Good Design for Better Bottom Lines
We know that in the world of finance and banking, numbers rule all. But what if we told you that there's a missing piece to the puzzle? A piece that can take your business from good to great, from profitable to wildly successful?
That missing piece is creative.
Some of you might be skeptical, but we're here to connect the dots for you. Creative isn't just about pretty pictures or sleek logos (though those are important, too). It's about using design to tell a story, build a connection with your audience, and stand out in a sea of competitors. And the best part? It can drive results that will make your numbers-loving heart skip a beat.
So whether you're a spreadsheet aficionado or just someone who's looking for a fresh perspective on marketing, this one's for you. Let's dive in and discover the power of good design together.
The Value of Design—By the Numbers
To better understand the importance of creative and design in the financial and banking industry, let's first take a look at what the numbers have to say. Several studies have been conducted to understand the impact of design on the bottom line and the results are impressive.
According to a study by McKinsey & Company, companies that prioritize design outperform their competitors by a significant margin. Tracking over 300 publicly listed companies around the world over a five-year period, researchers established the McKinsey Design Index (MDI), which “rates companies by how strong they are at design and…how that links up with the financial performance of each company.”
As it turns out, companies with top-quartile MDI scores increased their revenues and total returns to shareholders (TRS) significantly faster than their industry peers. More precisely, over a five-year period, top MDI scorers enjoyed:
- Revenue growth that was 32 percentage points higher than industry counterparts
- TRS growth that was 56 percentage points higher than industry counterparts
When it came to the retail banking industry in particular, companies with top MDI scores saw:
- Revenue growth that was 27 percentage points higher than industry counterparts
- TRS growth that was 18 percentage points higher than industry counterparts
Notably, the powerful effects of strong design were seen across each industry studied, suggesting that “good design matters whether your company focuses on physical goods, digital products, services, or some combination of these.”
But it's not just about overall company performance. As one InVision report found, prioritizing design can positively influence all kinds of business outcomes.
Surveying employees from 2,200 companies across 24 industries in 77 countries, the report identified five levels of design maturity. Level 5 companies — deemed Visionaries — view design as core to business strategy rather than a nice-to-have. As a result, these design-focused companies see the greatest results.
When surveyed, a vast majority of Level 5 companies reported that their design team had a proven impact on customer satisfaction (99%) and revenue (92%). And the benefits don't stop there. Level 5 companies also reported a significant impact on:
- Product usability (100%)
- Cost savings (85%)
- Time to market (84%)
- Conversions/funnel metrics (83%)
- Brand equity (82%)
- Entry into new markets (79%)
Now, when it comes to the banking, financial services, and insurance industry, only 2% of companies have reached Level 5 of design maturity, which is below the average across industries (5%). But don't let that get you down. See it as an opportunity to get ahead of the competition and become a visionary in your field.
By prioritizing design and viewing it as central to your business strategy, you too can enjoy improved customer satisfaction, revenue growth, cost savings, and more. And if you're still not convinced, stay tuned as we go beyond the numbers.
Revealing the Lucrative Power of Creative
Now that we’ve gone over the numbers, let’s break down exactly how creative and design can pack such a punch.
Strengthen Brand Identity
Good design isn't just about making things pretty. It's about creating a visual language that communicates your brand's personality, values, and purpose to your audience. Just like how interest compounds in your favor the more you have it, a strong brand identity builds upon itself over time. With each piece of consistent and high-quality creative, your distinct brand identity — and all the things that make you unique — is reinforced to your audience over and over.
This is because creative has a direct influence on how customers perceive you. Just from seeing your logo design or ad creative, audiences can form an opinion of your credibility, professionalism, or quality. In financial services and banking, where trust and reliability are key, a strong brand identity can mean the difference between gaining a customer's loyalty or losing them to a competitor.
In many ways, creating a strong brand identity is like building a financial portfolio — it requires careful planning and strategic investments. If you need expert guidance, we’re happy to help you make the right creative investments to strengthen your brand and attract loyal customers.
In the digital age, where consumers are bombarded with an endless stream of content, standing out is more important than ever. That's where good design comes in. It can help your brand cut through the noise and grab the attention of your target audience.
A well-designed website, logo, advertisement, or social media post can make your brand instantly recognizable and memorable. Moreover, good design can also help you reach new audiences by making your brand more accessible and appealing to a wider range of people. By using design elements that resonate with your target audience, you can draw in new customers to your offering.
Just like how timing is crucial in financial markets, brand visibility can also serve as your safety net against market volatility. While no one can predict the ups and downs of the market, increasing your brand visibility helps to hedge against being unnoticed in those prime periods. By investing in good design, you can make sure that your brand stands out at all times and position yourself for success when opportunities arise.
Improve Communication and Messaging
When it comes to the financial services and banking industry, communicating with customers can be a tricky business. There are regulations to follow, jargon to decipher, and, frankly, not everyone finds numbers as easy to digest as you do.
Let's be real, when was the last time you got excited about a bank's newsletter? We're all guilty of hitting the delete button on those messages that seem to just drone on and on. But fear not — good design can make all the difference. Injecting some creativity into your messaging can transform it from a snooze-fest into a breath of fresh air.
In a sea of emails, ads, and notifications, it's easy for your message to get lost in the shuffle. But with eye-catching creative, you can grab your customers' attention and make them want to engage with your content.
Good design can also make your message easier to understand. Well-designed creative can make important information much more approachable and understandable for your customers. When your customers feel like they can actually make sense of your message, they're more likely to engage with it and take action.
So, to sum it up, effective creative can improve communications and messaging by making your message stand out and easier to understand. And when your customers are engaged and actually paying attention to what you have to say, that can only be good news for your bottom line.
If you're struggling to create eye-catching and effective designs for your communications, consider working with a creative agency — like ours! — that can help you cut through the noise and stand out like a diamond in the rough. We've got plenty of ideas to help you spice things up and make your communications something customers will actually look forward to.
At the end of the day, improving your bottom line is all about getting people to take action. And that's where creative and design can really work their magic.
When you have a well-designed website, print collateral, or ad, you're creating an experience for your customers that goes beyond just reading words on a page. You're creating an emotional connection and helping them visualize themselves taking action. When your customers can see themselves actually using your product or service, they're much more likely to convert.
Good design can also make your conversion process more intuitive and streamlined. With everything clear, concise, and easy to navigate, your customers are much more likely to actually follow through.
In summary, good creative and design can boost conversions by creating emotional connections, making the conversion process more intuitive, and having your offer look more appealing. And when you're seeing more conversions, you're seeing more business and, literally, more money in the bank.
Reap the Rewards of Good Design with PH3
Numbers may be your bread and butter but we're here to remind you that creative is the special sauce that can take your business to new heights. At PH3, we understand that good design is about more than just aesthetics — it's about building a connection with your audience, telling a story, and driving real results.
As we've seen, creative and design can impact your bottom line in a multitude of ways, from boosting revenue and conversions to improving customer experience and communication. Just as you need innovation to tap into the profits of your investments, you can also rely on innovative thinking in the creative department to boost your bottom line. So, don't be afraid to think outside the box and tap into the power of good creative. Your business (and your numbers-loving heart) will thank you.
And if you're ready to take the next step, we invite you to reach out and see how we can help you unlock the full potential of your brand. Let's make some moolah together!