Email marketing is no short of a lifeline for the financial service industry, given the scope and rate of digitization in today’s world. However, many financial service provider across the globe fail to harness the true potential email marketing holds for them due to a lack of insights regarding the channel.
It can be much more than a grievance redressal channel that also happens to be used for sending periodic account statements- you can use Mailchimp or Salesforce templates to accelerate customer acquisition, boost retention, cross-sell, and much more.
As a financial service provider, email marketing allows you to customize consumer interactions based on customer choices, data, and interactions with the financial services portals.
Helps Maintain Consistent Customer Interactions
As a financial industry, having a continuous stream of messages helps improve your brand reputation and builds personalized relationships, which is extremely important as a financial institution. A good email marketing strategy helps you with the following beneficial effects:
- Increasing engagement
- Enhancing client satisfaction
- Strengthening customer relationships.
Consistent email-based communications also help you boost the lifetime value of your clients while keeping your customers updated. Since the number of innovations and products is increasing at an exponential rate in the FinTech industry, your customers will not learn about what you provide until you inform them.
Enhance The Protection Of Consumer Transactions + Promote Additional Instruments
As a rule of thumb, financial institutions are deemed responsible for enhancing the security and privacy of their clients’ transactions. Leveraging email-enabled two-factor authentication, or 2FA, is among the basic value additions you must provide as a financial service provider. While this mechanism provides web services with secondary access to client accounts in order to validate login attempts and confirm actions, you can also market relevant financial instruments within those messages or send marketing emails within a span of a few minutes.
For instance, if your customer requests for an OTP to make an online payment at an e-commerce website, you can later share e-commerce-related offers or even run partnership programs for cross-selling. This way, you’ll be able to grab their attention as your financial service provider would appear to be in line with their preferences while you’d make the most out of the security-oriented transactional messages.
Enables You To Facilitate Real-Time Personalization For Your Customers
It is essential for financial service to extend highly tailored user experiences and to ensure that each customer’s needs are met without them having to look for a solution outside or contact their staff. Emails can prove to be handy in the process since they help you learn more about your customer’s behavior through various email metrics and successively develop a deeper understanding of their financial behavior, condition, and aspirations apart from their financial literacy.
This way, you will be able to provide them with highly relevant marketing offers as well as value-added services with a high closing rate. For instance, a tailored email and/or SMS may be automatically generated based on the keywords submitted by the user on your financial service provider website or app.
Maximize Your Lead Conversion Ratio For Digital And Physical Activities
The financial industry often struggles with lead conversion today due to plenty of options and new-age digital-first BFSI companies. You can run 360-degree campaigns as you use features like dynamic segmentation and hyper-personalization in a tandem. Connecting your CRM and sales tools with your ESP to create Salesforce templates will allow you to harness above mentioned features with minimal effort and cost.
Email automation is an excellent tool for the financial services industry since it is the most secure way to provide customized, valuable content. Here is an example of using valuable information from Simple that can help financial institutions to improve their lead conversion rate when used as a part of drip/cross-selling campaigns:
Why is Email Marketing a Must for Financial Industry?
Email marketing is one of the most effective digital marketing channels available. It allows you to reach a large audience at a relatively low cost, and it’s highly engaging.
For financial companies, email marketing is a must. The financial industry is competitive, and email can give you a significant advantage. Here’s why:
Email helps you build trust and credibility. Financial companies need to build trust with their customers. Email is an excellent way to do this. You can use email to share useful information and resources, show your expertise, and build relationships.
Email is great for staying in touch with customers. In the financial industry, it’s important to stay in touch with your customers and keep them updated on your products and services. Email is the perfect channel for this.
1. Effective Communication Channel
In the past decade, email marketing has become one of the most effective communication channels for businesses. Here are three reasons why email marketing is so important:
- Email allows you to reach a large audience with your message.
- Email is a great way to build relationships with customers and prospects.
- Email is an affordable marketing tool that can produce high ROI.
2. Most Future-Proof Channel
Email marketing is important because it is one of the most versatile and future-proof channels available. It can be used to reach a wide range of customers, both current and potential, and can be adapted to suit the changing needs of businesses.
Email marketing is an essential tool for any business that wants to stay competitive in the modern marketplace. With more people than ever using email on a daily basis, it’s vital that businesses make use of this channel to reach their target audience.
There are many advantages to email marketing, including the ability to segment your list, personalize your messages, and track your results. This makes it easy to see what’s working and what isn’t, so you can continually optimize your campaigns. Email marketing is also very cost-effective, making it a great option for small businesses or those on a tight budget.
3. Better Average Read Rate
Email marketing is one of the most important tools in a digital marketer’s toolbox. By definition, email marketing is the use of email to promote products or services. Email marketing can be used to build relationships with potential and current customers, to drive traffic to your website, and to generate leads.
Email marketing is important because it allows you to reach a large audience at a low cost. Email is also an effective way to build relationships with potential and current customers. In addition, email marketing can be used to drive traffic to your website and generate leads.
With email marketing, you can easily track who opens your emails and who clicks on the links within your email. This allows you to see what type of content is most popular with your audience and helps you to make decisions about future email campaigns.
4. Easy Creation of Segmentation
Email marketing is a process of sending commercial messages to a group of people using email. It usually involves building relationships with customers or potential customers, and then sending them promotional messages about your products or services.
Email marketing can be an extremely effective way to reach your target audience, and it’s also relatively easy to set up. Segmentation is a key part of any email marketing campaign, and it can help you boost your open rates and click-through rates.
Segmentation involves dividing your email list into smaller groups based on certain criteria. This could include things like age, location, gender, job title, or interests. Once you’ve segmented your list, you can start sending more targeted emails that are relevant to each group.
5. Enables Personalized Touch to Campaigns
With the advent of digital marketing, various new channels and methods have been adopted by marketers to reach their target audience. Email marketing is one such method that has become extremely popular in recent years. Though it is a relatively old technique, it has been constantly evolving and has now become one of the most effective tools for marketing.
One of the main reasons for email marketing’s popularity is its ability to enable a personalized touch to campaigns. Unlike other digital marketing methods, email allows marketers to send highly targeted and personalized messages to their subscribers. This helps create a feeling of connection and builds trust between the brand and the customer.
6. Impressive Engagement Rate
Email marketing has been around for a while, but it is still an effective way to reach customers and promote your brand. Here are three reasons why email marketing is important:
- Email marketing can help you reach a large audience with minimal effort. All you need is a list of email addresses and a message to send.
- Email marketing is personal. When you send an email to someone, they are more likely to read it and engage with it than if they saw the same message on a billboard or in a commercial.
- Email marketing is affordable. You don’t need to spend a lot of money on advertising or design when you use email marketing. Plus, there are many free or low-cost email marketing tools available.
7. Higher Conversion Rate
Email marketing is one of the most important aspects of online marketing. By including an email address on a website, businesses can increase their customer base and conversion rate.
Email marketing allows businesses to send out mass emails to potential and current customers. This type of marketing can be very effective in promoting sales, events, and new products. By sending out regular email blasts, businesses can stay top-of-mind with their customers and keep them updated on what’s happening.
Including an email sign-up form on a website is one of the best ways to grow a customer list. By offering something valuable in exchange for an email address, businesses can quickly increase their database of contacts. These leads can then be marketed to on a regular basis, increasing the chances of conversion.
Overall, email marketing is an essential tool for any business that wants to succeed online.
Email marketing is not only the most cost-effective form of communication for financial services industry but also the most effective channel since it is considered a legal communication tool by people. As a financial services industry, you can benefit immensely from email marketing due to its inherent trustworthiness, as it is one of the most important parameters of financial decisions. Like other types of business, you can leverage emails with necessary alterations to:
- Automate your sales cycle
- Onboard new clients
- Educate and notify clients
- Nurturing leads
- Retain customers
- Cross-sell, upsell, and down sell
- Facilitate customer support and service
Long story cut short; your financial services industry simply cannot afford to ignore email marketing in 2022!
Author: Kevin George is the head of marketing at Email Uplers, that specializes in crafting Professional Email Templates, PSD to Email conversion, and Mailchimp Templates. Kevin loves gadgets, bikes & jazz, and he breathes email marketing. He enjoys sharing his insights and thoughts on email marketing best practices on email marketing blog.