Creating loyal customers through regional marketing for BFSI brands

There exists a treasure chest—hidden in plain sight, not buried deep beneath the ground—waiting to be unlocked with the right combination of trust, technology, and curiosity. This is the reality of India’s tier-2 and tier-3 markets. They are no longer ‘emerging’, but are rapidly asserting themselves as growth engines for the banking, financial services, and insurance (BFSI) sector.

A recent study by Deloitte notes a rising demand for home and household items in India's tier-2 and tier-3 towns. This is due to increasing disposable incomes and evolving consumer preferences for higher-quality products in these places.

These smaller towns and cities, once considered distant cousins of metropolitan hubs, are now commanding serious attention. According to the Internet and Mobile Association of India (IAMAI), over 56% of India’s active internet users will be from rural India by 2025. With rising disposable incomes and increasing financial awareness, consumers in these markets are eager for products and services that match their aspirations.

For the BFSI sector, this isn’t just an opportunity—it is a clarion call. How do you unlock this treasure chest? The answer lies in a multifaceted approach that combines digital innovation, localised engagement, and an unwavering focus on customer experience.

The language of trust

In tier-2 and tier-3 regions, trust isn’t given—it is earned. One fast way to earn trust is by speaking the customer’s language—literally. It is established by now that Indian internet users are more likely to respond to content in their native language. This is why BFSI players must prioritise multilingual support across digital platforms.

For example, when launching a home loan product, a lender could position it as a tool to help families achieve the culturally significant milestone of home ownership, tapping into regional festivals like Onam in Kerala or Pongal in Tamil Nadu to build an emotional connect.

There is an old saying—People don’t care how much you know until they know how much you care. The same holds true for brands aiming to build loyalty in smaller towns.

Offering personalised experiences in Hindi, Tamil, Kannada, or Marathi, for instance, can bridge the gap between product awareness and product adoption. For instance, a chatbot that allows customers to interact in their preferred language may make the digital banking experience intuitive and accessible.

When offline meets online

Tier-2 and tier-3 cities demand a hybrid approach. Yes, digital marketing remains a crucial entry point for reaching younger audiences and first-time users in these regions. Social media campaigns, programmatic ads, and targeted WhatsApp messaging can create initial awareness.

However, local partnerships are equally important. Below-the-line (BTL) marketing methods such as kiosks in local markets, sponsorship of regional events, and partnerships with community leaders provide a physical presence that reassures customers. Transit media—such as advertising on buses, auto-rickshaws, and even trains—helps reinforce brand visibility in public spaces that locals frequent daily.

Consider the case of a BFSI player offering personal loans. A digital campaign might attract initial inquiries, but trust is often sealed offline. Community outreach programs, financial literacy camps, and partnerships with local influencers (yes, every town has its influencers) can turn curiosity into conversions.

Essentially, set up financial literacy camps in rural and semi-urban areas. By educating potential customers on financial products and offering hands-on guidance, the organisation builds trust and drives adoption of its services.

Power of word-of-mouth

In smaller towns, word-of-mouth is king. One satisfied customer can bring in five more.

But the reverse is also true. A single bad experience can spread like wildfire.

This makes customer service a critical part of the marketing strategy. BFSI companies must ensure that their customer support is as responsive and empathetic as their advertising is engaging.

One successful approach is offering local-language support across multiple channels—online, over the phone, and in person. Companies that have leveraged this strategy by setting up regional customer care centres ensure that even the smallest customer query is addressed in a culturally sensitive manner. And this is where tech steps in. 

Technology isn’t just a tool; it is a bridge connecting aspirations to reality. Innovations like generative AI for insights-driven customer service, AI-driven chatbots, personalised loan offers, and digital onboarding have made financial services more accessible to tier-2 and tier-3 town consumers. Yet, the challenge is to humanise this technology.

Marketing in India’s tier-2 and tier-3 cities isn’t about quick wins; it is about cultivating long-term relationships. Marketing in tier-2 and tier-3 regions is not about rushing in to grab market share. It is about unlocking sustainable growth by aligning with the aspirations, values, and realities of these communities.

The treasure is there—but only for those who have the patience to understand the market, the empathy to address its unique needs, and the foresight to leverage technology in meaningful ways.

The key to success is not in the treasure itself, but in the journey of unlocking it, as most marketers know. And for BFSI players, the journey into India’s heartland is just beginning—but the rewards promise to be well worth it.

— Nalin Jain, chief marketing officer, Godrej Capital