MTM, the trusted data, insight and strategy partner has introduced HEART by MTM. This is a growth framework for subscription and digital service brands, providing quantitative insights into the performance of brands in the fintech category.
The HEART framework highlights the success of the fintech category. It points to brands like Wise and Monzo, which have adeptly recognised unmet customer needs and tackled pain points through innovation, a robust presence, and the cultivation of personalised relationships.
The HEART framework research highlights top performers in key categories. These include finance, travel, gaming, food, video-on-demand, sports, telecommunications and music.
HEART uses structural equation modelling and regression analysis to calculate brand strength (the T-Score) and brand experience drivers. This includes getting the basics right, integrity, value, innovation, presence, ease of doing business, and personalised relationships, to identify the impact on brand health. Assessing fifty brands over eight different categories, HEART aims to guide brands in making the right investments to drive ROI.
The insights from HEART underscore the strategic positioning of fintech brands in the minds of customers, adeptly addressing unmet needs and resolving pain points. These brands have focused on helping customers achieve their category goals through digital access, new features, easy onboarding processes and high-quality user experiences. In contrast to traditional banks, fintech brands are perceived as modern.
This is due to their ability to enhance value for money. They are also trusted with personal data handling more than incumbents. Additionally, they exhibit greater transparency and honesty.
Starling Bank, Wise, Monzo, and Revolut are closely associated with innovation and a strong market presence. Wise’s unique, specialised money transfer services and Monzo’s expertise in meeting daily needs, coupled with impactful advertising, position them as top performers. While NatWest and PayPal are recognised for their transactional simplicity, integrity, and essential services, they lag in popularity compared to other brands.
What is HEART?
The HEART framework is a new way of addressing the most existential challenges for any subscription or digital services business: acquisition and retention. HEART experienced drivers are based on functional and emotional brand experience elements that are tangible and actionable by brands.
The framework also provides a barometer of overall brand health and is a springboard for deeper analysis and tracking built on understanding the needs of customers at different lifecycle stages. It benchmarks brand, acquisition and retention performance and aims to be more holistic and meaningful than NPS or other single measures.
Jonathan Stone, director at MTM, said: “Fintech brands make the experience of managing money easier and have successfully created a safer, more transparent and welcoming paradigm.
“In the competitive fintech landscape, identifying unmet needs, mastering fundamental aspects, and ensuring user-friendliness are crucial for customer acquisition and retention. The HEART framework facilitates performance evaluation, providing a flexible and targeted approach for brands to achieve their business objectives.”
A valuable lesson for any industry aspiring to replicate fintech, disruptive success is understanding the benchmark for user experience comparison. Furthermore, mastering fundamental elements, including a clear purpose, customer understanding, and addressing pain points, are the most critical factors that drive customer perception.
Speaking about HEART by MTM, Caroline Wren, MTM managing director, said: “Today, every brand with a subscription or membership model faces acquisition and retention challenges. While these challenges are fundamental for businesses to address, there may be a disconnect between understanding what areas to double down on and where to pull back, and how this relates to the overall health of the brand.
“HEART by MTM addresses this gap by offering a practical and actionable framework that empowers subscription brands to achieve improved acquisition and retention outcomes.”