One of the advantages that banks as a brand has over others is that it typically has access to a repository of huge consumer data. Interestingly, banks such as HDFC now claim to be using that data to create targetted communication. This according to the bank has been a game changer. In a conversation with BrandWagon Online, Ravi Santhanam, chief marketing officer, HDFC shared his insights on the evolving roles of marketing. (Edited excerpts)
Q. What is the marketing strategy of HDFC Bank? How is it distinct from competitors?
Marketing strategy is all about understanding your target set of customers, what products and services you have that solves the problem for your target set of customers, and how you communicate. This is the focus of the company when it comes to marketing strategy. Most of the banks look very similar, but what differentiates one organisation versus another is the ability to deliver, and that is what our focus is.
Q. What is the marketing mix? How is your ad-spend split between traditional and digital medium?
We have no split in our mind, it depends on what is the particular objective that we have set for ourselves for a particular campaign. If there is a festival media campaign, where there are a lot of offers, then it is more likely to be mass media, because you want to create an instant awareness and make sure that everybody comes.
Digital has helped us to target users specifically. We see digital as one more element in the media mix that has its own advantages. However, in FY23, traditional marketing strategies predominated digital for the company.
Q. Automation has taken over most of the functions when it comes to day-to-day operations of companies. How has HDFC been using technology?
We have been using artificial intelligence (AI) to identify the right cohort of customers for a long period of time. We have data scientists who work with us and their primary job is to look at the entire data that the bank has and all our communication sent across multiple channels.
Data scientists pull all the data together, and then create profiles of customers, predict what is going to happen with these customers, then prescribe what we have to do to make sure a customer buys our product. All this requires heavy investment in technology. Now with generative AI in the picture, we are trying to understand how it can help us in better our communication.
Q. How has the role of CMO evolved?
I think the role of CMO has changed dramatically now. The role of a marketing officer is not purely communication today. It has more to do with technology and data. There is a lot more mathematics, which is getting involved now. CMOs now need to have the ability to understand data science, integrate with the technology team and work together to bring best return-on-investment (ROI). So, it is imperative for CMOs and CTOs (chief technology officer) to collaborate in an organisation and break down organisational silos to work together.