"Part of our job in marketing, which is a strange thing for a marketer, is to say, 'Do not engage.' Instead of nudging people to trade more or obsessively check their balances, Betterment wants customers to leave their money where it is while long‑term compounding does the work."
"If you were looking at CAC, you wouldn't have done that, because you're just spending money again on customers you've already acquired. But we really feel like loyalty [is] a more important measure of success."
"There's no FOMO here. Betterment's not about that. The company prioritizes return on ad spend and strengthening relationships with existing customers, contrasting with much of fintech, which tends to gamify trading."
Betterment's CMO Kim Rosenblum emphasizes an 'anti-marketing' approach that discourages frequent trading and promotes long-term investment. The company shifted from prioritizing low customer acquisition costs to focusing on customer lifetime value and retention. Betterment now runs promotional offers for existing users to enhance loyalty, contrasting with the typical fintech trend of gamifying trading. The strategy aims to keep users calm and invested for the long haul, avoiding the pitfalls of instant gratification and market volatility.
Read at AdExchanger
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