DIGITAL CHALLENGES FOR RETAIL BANK MARKETING STRATEGIES IN BULGARIA

Authors

  • Bistra Vassileva University of Economics, Varna
  • Hristo Rafailov University of Economics, Varna

Keywords:

digital challenges, retail banks, bank performance, marketing strategies

Abstract

Digital marketing is a natural evolutionary development of traditional marketing, aided by the rapid development of technology and e-commerce. This digital evolution is permanently changing the way of life and business, creating increasingly effective ways to meet the goals of customers and banks. The process is extremely important for banks because it is a crucial step for their survival in global markets. The application of new technologies leads to automation of processes, reduction of the risk of errors, increase of efficiency and improved customer experience. Due to the structural role of the banking sector for the country's economy and the emphasized public interest as a distributor of capital, the digitalization of banks in Bulgaria is a priority strategic task.
The purpose of this paper is twofold. The first aim is to identify market positions of Bulgarian banks in terms of customer satisfaction and awareness level. The second aim is explore customer attitudes toward digital performance of Bulgarian banks, based on their perceptions and experience. The main research questions are related to the changes in retail banking services caused by the digital transformation which are necessary to be done to react to the customer behavioral patterns, expectations and preferences. Results indicate that banks should pay special attention to the personal needs of customers throughout the customer journey, given its influence on customer satisfaction and loyalty.
Both desk and field research are employed in this study. Based on desk research bank performance in terms of customer satisfaction measured by NPS is presented. The main aim of the field research is to collect data about customer perceptions and attitudes toward banks and their services with a focus on their digital performance. Data are collected through online survey. The following metrics and indicators are measured and evaluated: frequency of use of bank services, importance of the factors affecting the choice of bank, awareness level measured by unaided recall (SoM), customer perceptions of the functionalities of bank websites.
Six critical points to be addressed by the banks and reflected in their digital marketing strategies are presented as a conclusion: implementation of new technologies, development of digital applications and services, development of a consistent model of digital communication with the customers focusing on instant interaction through variety of digital channels, utilizing integrated customization of large data sets for personalized banking, implementation of loyalty and retention programs focusing on digital channels, customer experience as the core of the digital marketing strategy.

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Published

2021-12-15

How to Cite

Vassileva, B., & Rafailov, H. (2021). DIGITAL CHALLENGES FOR RETAIL BANK MARKETING STRATEGIES IN BULGARIA. KNOWLEDGE - International Journal , 49(1), 65–70. Retrieved from http://ikm.mk/ojs/index.php/kij/article/view/4806