Demonetisation: A marketing opportunity for digital payment companies

Brands across sectors have increased their marketing spends by 50-70% to promote digital transactions. Mobile push notifications and SMS have emerged as the most used digital marketing tools by brands in the BFSI and e-wallet segments to engage with their target audience post demonetisation. BFSI companies also had to update their consumers that banks would be operational on weekends. So marketers in this sector increased their digital spends and marketing communication in order to keep their target consumers well-informed. Retail brands reduce promotions Cash-on-delivery has been the dominant trend in the e-commerce sector. SMS and email have been the most used marketing tools for e-commerce and retail brands. The marketing channel of brands across sectors There has been an increase in mobile communication by e-wallet brands through digital marketing tools. SMS has been the most used channel of communication by BFSI brands during demonetisation. These facilities have been aggressively promoted through digital channels like SMS across the country, and email which is more popular in Tier I markets. Also, with digital payments, every detail of the transaction is accounted for, which is exactly what the government wants to achieve with demonetisation.

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Although the government’s recent move to demonetise Rs. 500 and Rs. 1000 notes have left a lot of people scrambling for cash, digital payments have been seen an explosion in promotional activity. Brands across sectors have increased their marketing spends by 50-70% to promote digital transactions. E-wallet brands have capitalised on the situation to acquire new consumers and have increased their digital marketing by a staggering 120%. Retail brands, on the other hand, have reduced their digital communications by 20-30% owing to most online orders being made with the cash-on-delivery option. Banking firms have increased their marketing communication by as much as 200-300% to keep people informed about their services and build brand loyalty. Mobile push notifications and SMS have emerged as the most used digital marketing tools by brands in the BFSI and e-wallet segments to engage with their target audience post demonetisation.

Opportunities aplenty for e-wallet brands

For e-wallet brands, demonetisation has created an ocean of opportunities to acquire new consumers, increase merchant tie-ups and engage effectively with their existing consumers. The idea of the ‘country going digital’, as in some western countries, has been aggressively promoted. Brands in this segment typically work in a two-dimensional models – on one end are the customers and on the other end are the merchants. People are now more open to experimenting with e-wallet transactions and many merchants are also increasingly accepting the digital e-wallet model for their products and services. Today, people do not mind using their e-wallets for the payment of mobile bills/recharge, utility bills, cab bookings, movie tickets, etc. Moreover, since a lot of merchants don’t have card readers for debit/credit transactions, they have begun to accept e-wallets as a mode of payment, thanks to the ease of money transfer that just requires details to be fed into a mobile app.

Banking firms build trust and loyalty

Banking firms have been leveraging marketing technology tools to automate their communication workflow to handle the continuous stream of communication that they need to send to their consumers. Following the demonetisation rule, the government had set a withdrawal limit of Rs. 4500 in ATMs, which was later reduced to Rs. 4000 and then to Rs. 2000. These updates…

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