Fintech on the Rise: How product-led marketing fuels user growth

By: Stephen Akadiri

The world of finance is undergoing a digital revolution, with fintech companies taking the center stage. As a Product Marketing professional with a deep understanding of this dynamic landscape, the industry has witnessed firsthand how these innovative startups are disrupting traditional institutions. They offer user-friendly, tech-driven solutions for everything from payments and investing to borrowing and wealth management.

The explosive growth of fintech is undeniable. Statistics from Statista project a staggering 24% Compound Annual Growth Rate (CAGR) globally between 2022 and 2027. This means the way we manage our money is undergoing a significant transformation. However, in this crowded marketplace, attracting and retaining users remains a significant challenge. This is where product-led marketing comes in.

Product-Led Marketing: Beyond Features, Lies a User Journey

Product-led marketing flips the script on traditional marketing. Instead of bombarding users with promotional messages, it focuses on the product itself as the primary driver of user acquisition and engagement. But it’s not just about building great features. Successful product-led marketing involves strategic use of those features to create a user journey that fosters exploration, activation, and ultimately, conversion.

Think of it this way: Imagine signing up for a new financial service and being up and running in minutes, with intuitive features that make managing your finances a breeze. That’s the power of a well-designed onboarding process, a cornerstone of product-led marketing.

Marketing Efforts That Fuel the Product-Led Engine

Product-led marketing leverages several key strategies to drive user growth:

Content Marketing: This simply involves creating educational content like search engine-optimised blog posts, webinars, and explainer videos. This content, focused on personal finance management and the benefits of using fintech solutions, can attract a wider audience and position the product as a valuable resource.

Community Building: Fostering online communities where users can connect, share experiences, and learn from each other is another strategy. This not only increases brand loyalty but also provides valuable customer insights that can further refine product features.

App Store Optimization (ASO): Optimizing app store listings with relevant keywords and compelling descriptions ensures users searching for solutions like “international money transfer” discover the platform easily. Think of it as the digital storefront window – it needs to be clear, informative, and entice users to step inside (or in this case, download the app).

Smart User Onboarding: A well-designed onboarding process with clear instructions and helpful tutorials minimizes user friction and encourages exploration of core features. After all, the first impression matters!

Case Study: Grey – Putting Product-Led Marketing into Action

Let’s take Grey, a platform designed for digital nomads and freelancers. They understand the pain points of managing finances across borders. Here’s how product-led marketing fuels Grey’s user growth in addition to the points mentioned initially:

Frictionless Onboarding: A streamlined sign-up process gets users up and running quickly.

“Invoices” Feature: This core feature allows freelancers to send invoices to clients globally, a major pain point for their target audience. Statistics show that 72% of freelancers reported late client payments in 2023 (source: Deel), highlighting the need for such a feature.

“Bills & Airtime” Feature: Managing everyday expenses becomes easier, attracting users who value convenience.

“Gift Cards” and “Virtual Dollar Card” Features: These features cater to a broader audience seeking financial flexibility for online transactions.

Data-Driven Optimization: The Growth Engine

Product-led marketing doesn’t stop at feature creation. Companies like Grey use data analytics to understand user behaviour within the product. This data helps them:

Identify areas for improvement within features like “Invoices” to enhance user experience and potentially increase invoice conversion rates.

Analyze user engagement with “Bills & Airtime” to potentially introduce new functionalities that cater to specific needs.

Metrics that Measure Product-Led Marketing Success

Success in product-led marketing is measured by tracking key metrics that demonstrate user engagement and conversion:

Active User Ratio: This metric shows the percentage of users who are actively using the product within a specific timeframe. A high active user ratio indicates successful product adoption. Essentially, it tells us how sticky the product is – are users coming back for more?

Feature Adoption Rate: Tracking the usage rate of specific features helps assess their effectiveness and identify areas for improvement. For instance, a low adoption rate for a feature like “automatic bill pay” might indicate a need for an improved user interface or additional educational content.

Conversion Rate: This metric measures the percentage of users who complete a desired action, such as signing up for a premium plan after experiencing the value of the free tier. It’s like the ultimate test – are users getting so much value from the product that they’re willing to pay for more features?

Customer Lifetime Value (CLTV): This metric looks at a customer’s total revenue over their entire relationship with the company. By focusing on product-led marketing strategies that foster long-term engagement, we can aim to increase CLTV. Happy, engaged users become loyal customers who contribute more to the company’s bottom line.

Net Promoter Score (NPS): This metric measures customer loyalty by asking users how likely they are to recommend the product to others. A high NPS indicates a strong user base that advocates for the product, further fueling growth. Think of this as word-of-mouth marketing on steroids!

The Future of Fintech is User-Centric

As the fintech landscape continues to evolve, product-led marketing will play an increasingly critical role. By focusing on user experience, leveraging data-driven insights, and employing strategic marketing efforts, fintech companies can build products that not only attract users, but also foster long-term loyalty.

Akadiri, a product marketing expert writes from Lagos