Why Email Marketing is Good for the Finance Industry
| February 28, 2020
Does email marketing actually work?’ That’s the question every business owner, CEO, organization head, etc. is faced with when taking a call on promotional strategies. The uncertainty of taking the plunge into a new territory is perfectly reasonable. However, the fact remains that email marketing has proven to be the most effective automated tool for lead conversion.
Its effectiveness is even more apparent in profitable sectors like the financial services industry, that includes stock trading brokers, discount trading brokers, financial advisors, mutual fund advisors, and investment advisors. Email marketing tools can bring real value in highlighting the multiple services and products that finance companies have to offer.
It also offers a platform to showcase relevant products and solutions to a target audience clearly and concisely. All of these factors can drive a significant increase in clicks and conversions. Let’s understand what email marketing for financial services means, and how and why it can prove to be a critical tool for growth in these times of stiff competition:
Email Marketing for Finance Companies
Email marketing for finance companies follows the basic principles of this marketing tool – developing unique content to reach out to potential clients in their inbox. The purpose of this marketing strategy is to woo interested prospects through a intimate and personal channel of communication.
It is this very intimate nature of email marketing – allowing the recipient to receive your message in their inboxes without any other distractions – that makes it so effective. To makes the most of this effective tool of marketing for financial services, you must nurture the connection with valuable content.
Like with any other marketing effort, the end-goal here is to expedite sales and nudge email subscribers or recipients to sign-up for your financial services. Since almost everyone today checks their email daily, email marketing has boundless potential to deliver on that goal.
The relatively low investment in comparison to average returns makes this marketing tool even more lucrative for the financial services industry . The ability to automate sales cycles, nurture leads, increase traffic, finance companies cannot afford to not have a well-crafted email marketing.
Why Finance Companies Need Email Marketing
There’s no denying that email marketing can help put your business on the map. Here are four reasons why it is the need of the hour for every finance company:
1. Most Impactful Channel
A section of the financial services industry still shies away from using emails for promoting their products and services. However, research has established that email marketing is more effective than all the other channels of marketing for financial services put together. When done right, email marketing has the potential to drive up to 25 per cent of the total revenue for any financial institution. This channel of marketing also helps in building trust, loyalty and lasting relationships with existing and potential customers.
It is also a cost-effective means to reach out to a diverse audience. Businesses can use a mix of tailor-made updates as well as generic information to help their clientele make informed buying decisions.
It can also serve as a crucial tool to promote any special offers, tie-ups, collaborations with other brands, as well as discount schemes that make your business more appealing to your target audience. People these days lookout for brands willing to offer that something ‘extra’. So, even if your promotional emails carry small sops and discounts, these can hugely build up your brand appeal.
Concluding every email with a call-to-action button is a great way to generate leads, which can then be converted through follow-up emails. A well-deliberated, structured email marketing strategy that plays to the needs of your target audience is all it takes to make an impact that few other channels can match.
2. High Conversion Rate
Generating leads in just one aspect of email marketing; conversions is another, more crucial ball game altogether. After all, that is the ultimate goal of marketing for financial services – to build a wider, stronger customer base and drive sales. Email marketing tools have immense potential in delivering a high conversion rate. For that, it’s important to have a finger on the pulse of your target group. Including targeted offer have great potential for engaging prospects in the long run.
If the takeaway of your email is that the recipient stands to benefit on many levels from a single offer, they are far more likely to take the next step toward using your products or services. This not only results in a high conversion rate but also a generous amount of database.
The trick is to not hold off in introducing the ‘what’s in it for me’ factor but to dive straight into it right from the subject line. When the recipient reads a lucrative subject line that clearly spells out what you’ve got to offer, they are more likely to pay attention. As long as the email touches up all the ‘sweet spots’ of a particular offer or service, the recipients will be driven to click on that call-to-action button, going from prospective buyers to customers in a matter of seconds.
The database collected via a business’ interactions with their target audience also provides a great deal of insight into their demographics. This information can be crucial for segmentation of customers in different groups, which in turn, helps in creating targeted messages for each one them. For instance, the content of emails for people looking for mutual funds advise has to be different from that for those looking at pension plans. Smart handling of customer data allows you to do just that.
3. Personalized Touch
Emails by their very nature are more personal than say a social media post or billboard hoarding or even a pamphlet delivered to someone’s doorstep. You can enter a prospective or existing buyer’s inbox and deliver your message in a space that has their undivided attention. To capitalize on this opportunity, it is imperative that the content of these emails is always aimed at enhancing the personalized touch.
A smart way to achieve that is to weave your CSR (corporate social responsibility endeavors) into your email marketing strategy in a subtle yet cohesive manner. In doing so, you can connect with your recipients on a human level and appeal to their emotional side.
Email marketing presents you with an opportunity to promote your brand image and name without always trying to hard-sell your business, products or achievements. This is a great way for finance companies to generate goodwill and build up a sense of credibility in a sector typically viewed with skepticism.
Email Marketing Tips for the Finance Services Industry
Acknowledging that email marketing is essential to uplift the growth prospect of financial companies in one thing, successfully incorporating it in marketing for financial services quite another. Here are a few pro-tips to bear mind to tap the full potential of email marketing in the finance sector:
1. Focus on Value Addition
A half-hearted attempt to reach out to your customers or target audience will not take you anywhere. In fact, such marketing initiatives can often backfire. Therefore, value-addition must be the top priority of your marketing strategy. Do not just tell your recipients what you have to offer, but go above and beyond to tell them how your services or products will help them secure a better present and future.
There may be scores of other market players vying for the attention of the same target audience. Why should they open your emails above theirs? If every email you send out answers that question, it will help add value to your message every single time.
2. Create an Emailing Plan
A good email marketing strategy is one that is consistent in its tone and tenor, which requires a well-thought-out plan. Do not just dive into email marketing for your finance business headlong because you are excited by the idea. Start out by deciding what kind of message or messages do you want to send out, what is the content of your emails going to be, who are you targeting with these emails, is your content in line with the needs of your target audience, what kind of voice do you want your business to have. All of these are important considerations and must be addressed with clarity before you start working on your first email marketing campaign.
3. Aim for the Personal Touch
Sure, you need to define the nature of your email marketing efforts right at the outset, but these parameters do not have to be set in stone. It is equally important to remain somewhat fluid in your approach. This helps create scope for adding a personal touch to your emails.
Divide your customer base into different groups on based on parameters such s geography, buying behavior, age, financial background, and concerns and issues, and then craft emails addressing the specific needs of each of these groups. This personal touch can help increase the likelihood of a recipient interacting with your email and following through on the ‘call-to-action’ buttons.
4. Be Consistent
Five emails in a week, then silence for a fortnight, followed by yet another barrage of emails – a haphazard approach does not portray your business in the most professional light. It is, therefore, crucial to pace yourself. In doing so, remember that you may have a lot to say for the first couple of weeks or months, but it may not be the case six months down the line.
Bear the long-terms ramifications in mind while deciding the frequency of your e-mailers. You do not want to inundate your recipients’ inboxes with your emails but at the same time not keep them so scarce that they lose the value of recall. Ideally, a couple of times a week is what you should aim for.
5. Mix it Up
A personalized touch, tailor-made solutions, updates of special offers and discounts, general information about your business, CSR efforts – there is a lot of room to play with when it comes to the content of your emails. Make sure you mix it up to break the monotony and keep the recipients interested in what you’ve got to say.
6. No Complex Jargon
A lot of people steer clear of financial investments and plans because they cannot fully grasp the technicalities of different schemes, service and products. At the same time, those who are interested in the financial industry want to stay abreast with the latest updates and how it affects them personally. You must find a way to strike that fine balance of providing information without making it sound too complicated or confusing. Keep it simple.
MediumAxis Has Got You Covered
Full-time finance professional may neither have the time nor the aptitude to balance the nuances of email marketing for financial services.
At MediumAxis, we have all the necessary email marketing tools and skills to make that happen for you. Some of the reasons why we work best with finance companies include:
- Vast experience in crafting email marketing campaigns for the finance sector
- Customized solutions for financial stockbroker and service agency
- Specialization in catering to the financial services industry and finance companies
- Faultless industry insights based on in-depth research in the financial domains, which can help to create innovative marketing campaigns that stick
- A finance-specialist content writer who can deliver your message in a clear, concise and easy to comprehend manner without diluting the facts.
Your finance business needs email marketing to thrive, and we can make it happen for you.
