VIEWPOINT: Testimonials are a Winning Marketing Strategy for Financial Institutions

In an increasingly competitive financial sector, banks and credit unions are constantly seeking out best practices to build trust, grow “share of wallet,” and attract new customers. One effective and often underutilized tool in their marketing arsenal is the testimonial. Leveraging customer testimonials can significantly enhance credibility, foster trust, and differentiate financial institutions in a crowded marketplace. Riger’s financial-institution clients are constantly on the lookout for satisfied customers willing to share their story. Meeting with customers in their business or home, interviewing them, and then coming back in with lights and cameras to film on-camera interviews and b-roll gives the agency the raw materials. Editing together long-form videos and writing up their story provides the client with a potent mix of storytelling that can be broken into longer web narratives with still photos, 90- to 120-second web videos, 30-second commercials, 15-second and even five-second “ID” spots. Strategic placement of these success stories on their own website and social channels combines with TV advertising to create a customer- and prospect-networking opportunity that is tough to beat. In fact, it’s virtually priceless for a commercial lender or business-development person to hear a customer or prospect say, “Hey, I see from your videos that you work with customers like me. Can we talk?”

1. Building trust through authenticity

Trust is a cornerstone of the financial industry. Testimonials provide a powerful way to convey that trust in an authentic way. Going beyond the confines of traditional advertising, which can sometimes feel impersonal or self-serving, testimonials offer real-world, first-person validation of a bank’s or credit union’s services. When potential customers see and hear positive feedback from engaging people, better yet someone they already know, they are more likely to believe in the institution’s reliability and integrity. This peer validation — especially when it highlights specific benefits or exceptional service — can be particularly effective in overcoming skepticism and building initial trust. Of course, the bank must still convert awareness to interest and interest to account-opening action, then keep the customer happy with ongoing proof that their performance matches the promise of the advertising.

2. Showcasing real-world success stories

The power of testimonials lies in the fact that they allow financial institutions to showcase how their products and services have positively impacted real people’s lives. For example, a credit union might feature a testimonial from a member who successfully financed their first home through a tailored mortgage solution. Similarly, a bank could highlight a business customer who is realizing their dream thanks to the help of a dedicated small-business lender and smart financial planning. These stories not only humanize the institution but also demonstrate the practical benefits and effectiveness of its offerings. Prospective customers are more likely to relate to and be persuaded by these success stories than by abstract descriptions of services.

3. Enhancing marketing materials and digital presence

Incorporating testimonials into marketing materials — TV spots, websites, brochures, and social media — can greatly enhance their effectiveness. On websites, testimonials can be strategically placed on landing pages, product descriptions, and even home pages to capture attention and build credibility. Social-media platforms offer a great avenue for leveraging testimonials, where institutions can share customer stories, video endorsements, and positive reviews to engage with a broader audience. Fast and eminently shareable, social media is today’s word-of-mouth, and it’s powerful. For e-mail campaigns and print materials, well-chosen testimonials can reinforce key messages and add another layer of trust.

4. Blending media

Written testimonials are effective, but video testimonials can create a more personal connection, one that communicates the body language and actual voice of the customer. Videos allow potential customers to see and hear real people discussing their experiences, which can be more engaging and persuasive. For the short attention span, video will capture that kind of emotional appeal. At the same time, readers can digest written testimonials more quickly than sitting through a video. To each their own. Remember that videos show, and words go deeper. Deployed together, a strategic media mix packs more punch than any single medium.

5. Ensuring credibility and compliance

Finally, financial institutions must ensure that their testimonials are authentic and comply with industry regulations. Publishing or broadcasting real customer names and stories requires appropriate permissions (i.e., signed release forms). Compliance with regulations ensures that testimonials are used ethically and transparently, safeguarding the institution’s reputation and avoiding potential legal issues. Summary: When strategically planned and implemented, testimonials can be a potent marketing-communications tool for financial institutions. They offer a unique way to build trust, highlight success stories, and enhance marketing efforts, all while remaining grounded in authenticity and compliance.    

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Steve Johnson is managing partner at Riger Marketing Communications in Binghamton. Contact him at sdjohnson@riger.com.