The Muamalat Newsletter Vol. 2 2024

FEM eNewsletter | December 2024 76 advising, which, when integrated with marketing strategies, helps firms engage clients more effectively, attract new customers, and improve long-term retention. In the context of marketing, robo-advisors contribute to enhanced customer experiences by offering personalized, real- time interactions, increasing transparency, and streamlining onboarding and lead qualification. As such, robo-advisors present a significant opportunity for financial services to improve customer acquisition and engagement, foster trust through transparency, and utilize data-driven insights to design targeted marketing campaigns. Personalization and Targeted Marketing One of the most significant advantages of robo-advisors in financial services marketing is their ability to offer highly personalized product recommendations (Arenas-Parra et al., 2024). Byanalysingan individual’s financial profile, such as income, spending habits, risk tolerance, and financial goals, robo-advisors can suggest tailored investment portfolios, insurance plans, or retirement savings strategies. This personalized approach ensures that financial products are aligned with the unique needs of each client, creating a more compelling value proposition. This level of personalization also enables financial firms to implement highly targeted marketing campaigns (Belanche et al., 2019). Instead of using broad, one-size-fits-all marketing tactics, robo-advisors allow firms to segment their customer base and send targeted messages based on the specific needs and preferences of each client. For example, a robo-advisor may identify a client as a high-risk investor interested in aggressive growth strategies and provide recommendations for riskier investment options. Simultaneously, amore conservative investor could receive messages promoting low-risk, income-generating products. Such targeted marketing increases the relevance of communications, improving the likelihood of customer engagement and conversion. Moreover, robo-advisors help financial services providers reduce marketing inefficiencies (Beketov et al., 2018) by allowing them to focus their resources on clients most likely to benefit from specific products. This ability to run data-driven, segmented campaigns ensures that the right products reach the right customers at the right time, maximizing return on marketing investments. 24/7 Engagement and Customer Support Another key feature of robo-advisors is their ability to engage with customers at any time of day or night (Vyas et al., 2023). Unlike traditional human advisors, who can only interact with clients during set hours, robo-advisors provide continuous support and guidance. This always-available service is especially valuable for potential clients who may not have previously interacted with a financial advisor or those looking for immediate assistance. Robo-advisors also enhance customer engagement (Al Karim et al., 2023) by offering real-time recommendations, explaining financial products in an easily understandable manner, and responding to client queries. Whether a client needs help understanding investment options, portfolio performance, or the implications of specific financial decisions, robo-advisors can provide instant feedback and tailored advice. This round-the-clock availability improves customer satisfaction and builds trust, as clients know they can rely on robo- advisors for timely information. Furthermore, robo-advisors enable firms to maintain an ongoing relationship with clients by sending regular updates onmarket trends, portfolio performance, or product changes. By fostering continuous communication, robo-advisors help financial services firms stay top-of-mind and retain customers over