Effective Email Marketing For Financial Institutions
Updated: Aug 2, 2022
Marketing is an opportunity for banks, credit unions and other financial institutions to connect with their customers. And although the financial industry is restricted by regulations that often shape external communications, email marketing is a great resource for institutions to give their business personality and boost its bottom line.
Often neglected, marketing your institution through email is a great way to humanize your brand and connect with prospects and customers on a more personal level.
According to The Direct Marketing Association, the ROI index for email is five times higher than other direct-response marketing vehicles, and it returns $60 on each invested dollar. This is true with financial services. With high competition to get customer and services and products highly commodified, banks and other financial institutions must differentiate themselves by communicating value.
But it requires more than shooting emails offering business line of credit to every customer in your list. The following are some of ways in which banks can be effective at email marketing:
Make a content-driven newsletter
Increasing your email marketing productivity and building relationships with your customers requires exclusive content, as well as integration of social media, video and audio, capabilities that banks may not find in typical newsletter services. So they need newsletters with social integration to enhance their institution’s brand as a business advisor and a thought leader.
While most other forms of email content are product-focused, newsletters containing rich media are typically customer-centric. The content can provide critical touch points to consumers to make business decisions, while social media integration can result in greater reach as customers share their decisions or offers they find helpful on social media.
Make sure segmentation is done right
According to a MailChimp analysis of open rates for over 200 million emails, segmented email campaigns have a 14.4 percent better open rate on average than non-segmented campaigns. The aim is to change the strategy of email blasts and customize the campaign with a segmented approach. This would help institutions send more relevant messages.
Additionally, bank marketing campaigns that are targeted, segmented, and personalized will be effective at triggering endgame engagement and one-to-one conversions. It’s a matter of using automated campaigns based on segmentation to listen and respond individually to each customer’s online behavior. This bank marketing company showcases automated campaigns based on segmentation to listen and respond individually to each customer’s online behavior.
The email list could be segmented by:
Past banking behavior
Write great copy
This sounds usual but many institutions send out emails that look like amateur copy from the 90s. Remember that customers get dozens of emails in a day, so if someone opens the email because of an engaging heading, you would want to keep them interested. This can be done by:
Using bullet points to let customers browse the content quality and take action on vital points.
Using shorter paragraphs and ensuring the main products and services are emphasized.
Using images in a way that illustrates the message, not replace the content. Too large images can make the email sent to the spam folder or make them impossible to view on mobile devices, which a majority of now consumers now use to check emails.
Make it possible to opt out
Your email marketing campaign needs a friendly touch; don’t promote your services or products like an aggressive salesman; if users can’t opt out easily, emails will be flagged as spam, which will cause you problems when trying to reach them in the future.