Email remains one of the viable and future proof when it comes to financial marketing regardless if you are in financial services, bank, or working for a credit union.
To get the results, you are required to execute in the right way based on segmentation, personalization, and a clear understanding of the customer journey.
Email marketing seems to be time-consuming, but it can help in building the relationship and crafting a much more beneficial result.
To start with this, here is an ultimate guide to knowing how to start email marketing in the right way for financial services.
What Does Email Marketing Means In Financial Services?
The straightforward definition of email marketing and what it means in financial services, it’s a use of an email channel for promoting the services and products related to financial services.
This might be a little simple because in industries like finance if they invest even a tad more in their email marketing, they would see a dramatic increase in their open, click, and conversations.
There are some basic things that are common when it comes to financial services like credit card companies, insurance, banking, stock, and investment product is they all are built on basis of trust and relationship/
Email marketing helps to create and develop relationships and build trust with clients and potential customers.
Nurturing them with the help of using the interesting content, informing and updating them regarding the products as well advance.
Warm email subscribers for financial services via marketing and communication.
Why Do You Need Email Marketing?
People depend on email more than ever, social media sites might come and go, however, there are more than a billion people who are using email addresses.
Also, it is used on a daily basis, with open rates of more than 21.2%. You can reach more people as compared to any other medium.
Email marketing is all based on how you’re building the relationship with customers, it’s not just about marketing services, but to show appreciation and offer tips for keeping them right on track for getting financial success.
Here is what can help you :
Acquiring The Leads For Email
Although it’s highly effective, it can be tricky when it comes to acquiring subscribers for the email list.
You can scan in order to find unethical practices in order to avoid tarnishing the reputation and poor leads.
There are different approaches that can help you in creating a subscription list, to acquire quality leads, here is what to add :
- A personal website
- Free tutorials
Allow The Leads For Opt-In
Whatever you are using to get your audience interested, make sure to add an opt-in list and offer something when they share their address.
Prospects are required to believe that they will get something in return for their information.
However, when you are in a financial advisor, you can offer :
- Enroll leads to raffle with a prize that’s catchy
- Provide the perspective which should be unique on financial management
- Writing and offering the white paper
- Sending the promotion in return for singing them up
- Offering the materials to help them educate
Once your audience is subscribed, you can send them a welcome series which is an ideal way for generating their interest.
Capitalizing the interest from the lead magnets, you can start here to craft a healthy and respectful relationship/
There are around 50% of welcome emails that get opened, because of this, sending welcome emails is 86% more effective as compared to the standard newsletter.
Converting Your Subscribers Into The Customers
Email marketing campaigns work like a website, this helps you in building credibility and trust, however, you need to be persistent in order to convert them into a customer.
Also if the campaign ends up being effective, those subscribers who are interested will get in contact in order to get more information.
There are different types of campaigns that you can choose once you are done with the welcome series, such as :
- Use the financial advisor newsletter based on what your customer requires.
- Occasionally offering prizes that require the customers to get in touch with you.
- Pushing the articles you publish in journals and blogs.
What To Know Before Using Email Marketing?
Well, it’s important that you are aware of a few things before you start the financial services email marketing legal compliance.
People are serious when it comes to their data privacy, so you can’t be insensitive and ignore them, especially when it’s related to financial services.
In Europe GDPR and CAN-SPAM and CCPA act in the US, are the laws for protecting the consumers from the messages from marketing that are misleading and authorize the use of private information.
In a financial service provider, if you are not following the rules, you might end up losing credibility and clients.
However there are some basics that you should be following, it includes :
Avoid Using Blanket Signup Forms
Instead of this, make sure you have the checkbox dedicated to the purposes you want for collecting the emails. With this, your customer has the freedom of choosing what email they would like to opt-in, if you don’t then you can send only those emails which are related to transactional messages as it’s legally allowed.
Have A Clear Unsubscribe Button
When you are sending the email, you should add the subscribe button to the email so readers know how they can stop receiving emails from you.
It should be simple, clear, and easy without any extra steps or gimmicks.
Include Information That Are Needed
The email you send should have all legally needed information, this includes who has the access and data clients process if there is any third party or valid postal address.
In your email footer, make sure you are adding all details and information.
Use Company Domain Name
Put the name of your company domain name in all settings, this helps in preventing someone else from posing as your company and sending misleading emails.
Reasons Why Having Email Marketing Strategy Is Necessary For Financial Services
To understand what email marketing means and why it’s necessary that
Financial services should have their email marketing strategy, here are some of the top reasons why you should have it
It’s A Great Channel For Having Communication
As the world is progressing with rapid changes when it comes to technology, the organization requires to develop a strategy for streamlining the outreach plan of the customers.
There are several small and medium financial organizations that have not tapped into their unlimited potential. In reality, as compared to all forms you get in digital marketing, emails are the best.
It gives your audience the flexibility as they receive the tailored made and alert based on what holds their interests.
Along with that, you can send them generic emails too, and share the general financial information.
With this you are improving your credibility, you get a fantastic chance to connect with audiences who are showing their interest in what you offer.
It Creates Personal Touch With Right Audience
There is no doubt that people prefer to have personalization, there are studies that have shown that the extent of personalization will have the better open rates.
As for the financial organization, you can imperatively stay in touch with the customer.
By using the right email marketing software, you enhance the level of personalization significantly, to improve the chances of gaining the trust of your audience.
It Helps In Keeping The Communication Consistent
Many financial organizations have said that in order to be successful, you need consistent communication.
This helps you in improving :
- The customer satisfaction
- Enhancing the customer relationship
- Increasing the engagement
Your customers are not going to learn things on their own until you tell them.
So having a consistent email can help in making sure your customers are informed regarding the services.
It Helps You In Customer To Access Information
For the financial email marketing, it’s clear to deliver the information which is related to finance in their inboxes through the emails.
This helps your customers in staying updated with information, here they don’t have to visit the beach.
Also, you can use it for :
- Delivering the important documents
- Sending the updates
- Verifying the transaction ID
It Enhances The Financial Security
This also helps you in providing the security of the customer financial which is considered the main concerns for the financial and services.
If there is a leak of information which is personal finance, the customer might end up losing the trust in the financial service.
When you are using emails, you can provide two-factor authentication and boost the data to keep it protected and improve trust.
Benefits Of Using Email Marketing That You Can Get In Financial Services
According to results done by Econsultancy, they reported there are almost three quarters or 73% of companies which rate email marketing as excellent and good when it’s related to return on inventing.
The DMA shows that there is a 4200% ROI on average, which is amazing.
When you are following a well-executed email marketing strategy, there is numerous benefit that you get from it, well it includes :
Get More Customer With Lower Acquisition Costs
Since the potential lifetime value of acquiring new customers is so high, most of the financial brands end up investing more money in paid media, hoping to fill the sales funnel.
Yet the research done by Digital Growth Institute, there is 87% of brands who don’t have any solid leads generated strategy which is powered by marketing automation.
With the help of email opt-in , it can help in attracting new customers, and also lower the customer acquisition costs.
Here is what you should know :
- It helps in increasing the effects of paid media, as this one offers the sign-ups for newsletters and docklands that are related to campaign landing pages.
- Improving the impact of the content marketing and helps in converting more visitors into leads.
- Bringing contact back to site via using email and setting cookies to give opportunities for retargeting campaigns.
Help In Getting Wallet’s Bigger Share
Most of the financial institutes are well aware when it comes to unbundling trends , it’s not that unusual as customers get financial services from one provider.
Starting with Paypal, airlines started to offer branded credit cards, car financing, lease, and other insurance options for the bigger purchase.
Follow The Lead And Marketing Automation Nurturing
The next benefit you get in using email marketing is that email opt-in helps open a new door for developing the customer relationship.
Here you get the lifeline, especially for identifying the customers on different channels and multiple devices.
While having an opt-in allows you to stay in touch, it also helps you in nurturing much better in campaigns.
Increasing Sales And Conversion
The help of direct communication with the customer helps in increasing the revenue. So no matter how the customer journey seems, the audience will stay engaged.
By sending the newsletter, trigger, and promotional emails on a fixed time, this helps in impacting on the sales conversion.
Improving Loyalty And Retention
When it comes to financial service success, marketing is one of the biggest parts that they end up missing.
However, with the right email marketing, you can increase the focus on the customers who are connected with your company.
Well when the world is super connected, you require to invest more in making sure your customer is remaining engaged,
Email marketing allows you to build that level of relationship, make sure you are providing the customer experience value even if they are using the services passively.
And your obvious choice here is to use the triggers so they reconsider your services.
Reducing Cost By Offering Proactive Customer Service
While you are, service cost is not something you consider as the first thing, in a world where self-service is highly preferred according to most middle and younger aged.
Email can be the ideal channel for providing proactive customer service, with this you can lower the cost of other channels like call centers or face-to-face advice.
You can guide the customer via a welcome or onboarding program to start their new services.
Improving Your Customer Experience
While having a great product or service is important for the success of a brand, financial services expect to offer a customer experience which should be first-class as well.
Not just people expect that their customer experience should be personal but also frictionless and helpful.
Instead of seeing the whole thing as a transaction, you should put it as customer experience as post-sales.
If you are providing the customer experience top-notch , the chances are high that they will come back.
Also using email marketing helps you in offering that level of customer experience, you can do this by offering :
- Personalization of the marketing and service.
- Giving choices to customers and catering to their preferences.
- Providing the proactive service
- Be much more accessible
What Features To Look At When You Are Choosing Email Marketing Software?
To choose the ideal email marketing software for financial services, it’s important that you know what is best and must-haves.
Here are what features your business needs to have in their email marketing software:
Initiative Drag And Drop Email Builder
You need to have the drag and drop email builder and software interface to make it much more simple for creating responsive email newsletters and transactional emails.
The emails require to look right along with correct branding. You can create a template that must be built to render and display much more properly.
Detailed Reporting And Statistics
Next, you need to look for detailed reporting as well as email statistics for analyzing the effectiveness of your email, which also helps in making the email improve.
Structured The Subscribers Administration
This is important as it allows to manage the contacts list much more easily, you can also consider the commercial opt-ins and add the profile information to the back-office systems.
Advance Segmentation And Personalisation
Another important feature to look at is advanced segmentation and personalization, you can select your target audience segmentation and send the message which is much personalization depending on your subscribers, leads, and emails.
Industry Knowledge And References
When you are looking for software make sure you are having the industry knowledge and reference in the face of marketing automation.
When you have reference and other clients in the finance industry, this can help in improving the shares.
Best Strategies And Practices In Email Marketing For Financial Service
There are different email marketing strategies and practices that you can use for boosting your chances.
Here is what you can consider using:
Onboarding Those Who Are New
Just like the saying goes, you need to make the first impression and boost the connection.
Sending an onboarding email that should be crafted well, this can help in perfect opportunities for making the best impression.
As marketing strategies, you need to start with onboarding email, if you miss the chance then there are chances of having lesser engagement rates with the next emails.
Welcoming The New Customers
This is the email that you are sending to customers after the initial interaction with the business.
Through the welcome email, you can introduce and explain what financial service is offering and how the customers are getting benefit from it.
You can also use it to create the perfect opportunity for saying thank you to the customers and choosing banking or financial service.
Educating The New Clients
One unique thing you need in the financial industry for new clients who are not acquainted with several terms or how the industry actually works.
If you are offering the financial service provider, here you might share notes to many customers as they don’t know what financial services and tap benefits.
Smart financial investing is not what everyone gets to learn from their university.
But on the flip side, this can be a blessing in disguise. If it’s a fantastic opportunity for educating the customers. Make them aware of what your financial service is offering.
Send Updates And Notification
You might not know about the notification email generator which improves the higher open rate.
Sending the notification email can be one of the practices that can help you in email marketing for financial services.
Make It Easier For Accessing Service
There used to be a time when people had to wait in a log guide just to access their bank statements.
With the help of financial email marketing, this can help in notifying the customers and acknowledging the concern regarding the financial and bank statement.
You could just add a one-click button for easy download.
With this strategy, you can help in relieving the stress of the customers when it comes to going to the bank.
Send The Email Newsletter
You can send the newsletter even though it’s the oldest strategy you can find in email marketing. However, it’s still used for a variety of businesses.
This can help in getting the attention of your new customers, some of the examples you can consider to add in your email newsletter.
- Promotional emails
- Discount emails
- Information emails for customers
- Specific offers
Send Email For Security Verification
Internet theft and scams online related to finance is always high. They are imperative to ensure the safety of the customers.
For this, you can consider using the email marketing opportunity to do that. Send the email tips that can enhance the security while they are doing the online financial transaction.
There are some financial companies that send OTP to register their email address. Not just it helps in enhancing the security but helps in retaining the brand name in your customer’s mind.
Consider Using As Announcement Email
Since every year, more and more financial firms are coming up, the global finance industry turns into a rat race to launch features and stay ahead of the others.
By sending emails announcing what new features you are introducing, this will give you the opportunity to extend the customers and retain them.
Make Sure You Finalize The List
The most important step that you should take is to take a close look at what list you have in subscribers.
You are required to analyze the emails that you are using for sending from the company.
Do make sure that you are keeping the goal in your mind and this can help you in earning a better click-through.
Think about what you want from all of these and keep your goal clear.
When you focus on this, you can remove a lot of clutter and get on point.
Don’t End Up Overloading The List
It’s important that you are creating emails that are part of the financial marketing strategy, but also make sure you are not overloading the viewers.
If you are thinking of sending emails as a reminder, you need to send the emails but fix the frequency, also it should be accepted by the readers.
If you are sending a newsletter or need updates, then don’t overdo it.
Create Subject Line That Improves The Open Rate
Once the reader sees that it’s your email, they take a few seconds to decide if they want to open it or delete it.
This is a crucial second on which your whole campaign depends. So you must focus on improving the open rate. The answer is to create a compelling subject line.
To create your subject line, you need to focus on :
- Keeping your subject line short
- Create curiosity among your recipient
- Try the A/B testing to know which subject line is working for you
- Try to list down around 20 – 25 subject line ideas before you pick one
Add The Punch Of Incentive To Your Subject Line
Several marketers suggest that adding incentivizing to email can help you in boosting the open rate.
You can create a subject line, adding the incentives which can grab the attention of your audience, increasing the open rates.
Make Sure To Not Lose Touch
One of the mistakes that you can do here is not keeping in touch with your customer. If you have sent the email, maintain the frequency and make sure that you are on the mind of your readers.
If you end up hitting the inbox of the right audience, but if you take too long to get in touch with them, it can end up wasting the opportunity. So make sure you are setting the right frequency and testing the CTR, open rates, etc.