Email marketing is one of the only ways that the financial services industry can keep itself on a consumer’s nice list with plans for possible growth down the line. Some industries have a certain way about it and impulse buying tendencies to make that one-time sale. However, the financial services industry requires enough reputation and reliability to generate word-of-mouth referrals, one-time transactions, and sign-ups, etc. Therefore, a successful email marketing campaign keeps the financial services industry in touch with those who may be interested in the future; any subsequent information sent breeds loyalty to a brand for those who need to think things over.
Competition in the financial services sector is increasingly rampant. Whether it’s banking, insurance, investments, or fintech, a transactional relationship is not the solution. Therefore, email marketing provides a customer with information education, engagement and prompts to use other services should the need arise. Thus, these loyalty efforts and giving the customer information when they want it will greatly benefit a financial service company’s relationship with existing customers for a continually growing operation.
Building Trust Through Personalized Financial Insights
Financial decisions are personal. This is why customers love a service that caters to this. This is why email marketing works; it can send the nuanced information required for clientele to understand what is best for them. Email warm-up strategies ensure that these personalized emails reach inboxes instead of spam folders by gradually building sender reputation and improving deliverability. By assessing customer activity on a banking website, billing history, and focusing on certain details for certain purposes, banks can email a customer suggesting a certain investment, warning that they’re going over budget on one line item, or suggesting they’d have better credit with these credit cards to boost their credit score.
For example, a bank might email a savings account holder who has engaged in recent transactions to remind them of higher-yield options. An insurance company might nudge you about policy disclaimers or benefits related to your specific coverage. When a company can give you a nudge about things that it usually forgets but now remembers because it’s relevant to you, it fosters a sense of reliability and security for future transactions.
Engaging Customers with Educational Content and Financial Literacy
When consumers are financially literate, they are confident in their abilities. This means that in the field, financial institutions are excellent learning vehicles. Where correspondence emails are sales oriented, professionals can demonstrate their abilities and expertise through articles, how-tos, and comprehensive explorations of any given financial situation or options available.
This is an example of course offerings for which an email could be sent. A bank could offer “Understanding Mortgages” to first-time homebuyers on interest rates, payment plans, and requirements.
A cryptocurrency firm could send “Cryptocurrency 101” to anyone on potential new avenues of investment. When financial service providers do this via email with courses of legitimate value, it’s to a customer population who cares enough about their own better financial literacy now and in the future, as well as an acknowledgment of the provider’s expertise in the field.
Strengthening Customer Retention with Exclusive Offers and Rewards
The most influential financial services companies thrive off loyalty. Therefore, one type of email marketing engagement for customers would be to reward them with bonuses for loyalty. Loyalty bonuses, exclusive offers, discounts for using more expensive services, and early access to new financial products for those already assessed and approved should be enough to keep them onboard and stave off any temptation of seeking services with a competing firm.
Like a credit card company sending an email to regular cardholders that there’s a limited-time offer to increase cashback rewards. A wealth management company informing its clients that those who have been with the company for a certain amount of time will receive a complimentary portfolio review, just as a thank you. These types of targeted opportunities not only make the customer feel good about themselves, but the likelihood that they will stay with the service skyrockets.
Automating Transactional Emails for Seamless Customer Experience
The nature of the correspondence we got is what is considered transactional, like payment reminders, customer service updates, security updates, etc. In the financial services space, these are important correspondences relative to operational and security needs but also, they’re an opportunity. Transactional email can be transformed to enhance the customer experience by empowering the customer with pertinent info, links to additional helpful sites, and recommendations thereafter.
For instance, a we-approved-your-loan automatic email should not only say we’ve approved your loan, but also include a customized hyperlink to the repayment options guide. If someone is sent an email that their credit card payment is due tomorrow, let it hyperlink to an article showing how paying bills on time affects credit scores. Where Financial Services take these transactional touches and make them more than dry is by doing it over and over again with value-add.
Re-Engaging Inactive Customers with Targeted Campaigns
Clients passed up means clients that could have been added to financial institutions’ books. An email campaign reconnecting the conversation could do just that. An email could remind them of what they’ve yet to use or new developments or provide a reason to visit the site again.
For example, a banking application might text customers who haven’t accessed the app lately to entice them back in with new budgeting features or upgraded security options. An insurance company might text to remind customers they’re due for policy renewal, offering a percentage off for those who remain compliant. Financial catalysts for re-engagement minimize churn and maximize lifetime value.
Enhancing Security and Compliance Communication
Trust is everything in financial services, and consumers assume that if security and compliance efforts are not communicated via email marketing—or fail to appear in the email—they’re not secure or compliant. Thus, there is an extensive need for email marketing efforts for fraud notifications, compliance updates, and all other necessary reminders for customers to safeguard their accounts.
Banks also disseminate various compliance and security updates. A general email sent to the entire customer base, for instance, teaches them how to spot a phishing email, password safety tips, and when fraud detection systems are implemented with a law-required compliance update. If a bank ever has to do something with customer data due to compliance regulations, an email like this ensures that customers understand the bank’s good intentions of compliance and data security, and the customer’s obligations. These initiatives foster trust for life.
Driving Cross-Selling and Upselling Through Email Segmentation
Current consumers have a relationship with the brand already; therefore, they are the ideal consumers for additional services. Through email marketing, the bank can assess through usage who uses what and therefore, who would potentially be interested in additional services. Where a mass push notification would go to all customers for one service rendered, an email to those who need it or would benefit from it as a service is much more valuable. For example, a frequent flyer might receive an email recommending a credit card that doesn’t have foreign transaction fees. Someone who has a banking payroll service for their small business might be recommended for a small business loan. This data-driven segmentation boosts conversion while simultaneously enhancing the customer experience through more personalized options.
Measuring and Optimizing Email Campaign Performance
Like any marketing strategy, email in the financial services space needs adjustments after specific performance has been noted. What’s working and what’s not will be determined by analytical metrics like open rates, click rates, and conversions. Subject line A/B testing, where content is placed in the body of an email or where the CTA is positioned, allows for message refinement. When a school knows how many people opened the email because of a subject line or at what time it was sent, they know how frequently and at what time these correspondences should go out or adjusted via automated personalization. When email marketing is sustained by a data analytics-based campaign, future increased retention and satisfaction is sure to happen.
Leveraging Seasonal and Life-Stage-Based Email Campaigns
Moreover, since everyone’s financial stresses occur at various life events, emailing works at so many life events. A young twenty-something in their first entry-level job could benefit from a budgeting email just like a new mother looking to save for her child’s college could benefit from an investment email. Plus, seasonal offers work, too, emailing people during tax season or at the end of the year for holiday spending or investment opportunities gets them informed when it makes the most sense.
For example, a retirement service could send an e-mail to people who are in the middle of their careers about the best way to save this quarter because the fiscal year is ending. A bank might suggest savings tips for college because it’s almost back to school. These types of financial services have the information on hand to send quarterly or seasonally e-blasts to assist clients where they are at that time to make them feel good about themselves via the service and maybe inspire re-engagement in the future.
Strengthening Customer Loyalty with VIP Programs and Exclusive Perks
Customer loyalty happens within the realm of financial services because a lot of campaigns and membership perks are provided for those who are VIPs. A promotional email is an excellent way to ensure customization that makes the customer feel as if they are being catered to and truly valued, and then helps drive future loyalty.
For example, an upper echelon credit card might blast its big spenders the opportunity to enroll in a rewards program that only they can access, geared toward travel points for first-class focused trips. An investment firm might give long-term investors access to information before it goes public or premium investment opportunities. VIP incentive campaigns not only please customers but prevent them from going to other services.
Encouraging Financial Wellness Through Interactive Email Content
While static emails may convey important information, dynamic emails take engagement to another level. For example, quiz or calculator links from a financial service provider can help the consumer evaluate where they stand on the financial spectrum and actively teach them about related financial products at the same time.
A personal finance app might send an email titled “Quiz: How Financially Prepared Are You?” with a link to a quiz that provides customized recommendations based on the outcome. A lender with mortgage products might entice those seeking to purchase a home with an engaging loan affordability calculator. When a financial service hits send and includes the opportunity for engagement and interactivity, it helps promote a higher level of engagement and a greater chance of response.
Optimizing Customer Onboarding with Automated Welcome Sequences
Onboarding is when customers are kept at that pivotal time. A welcome sequence ensures that new customers feel like they’re being welcomed and trains them as much as possible to use a financial service. Thus, where an automated, one-size-fits-all confirmation email might be sent, a welcome email sequence is sent to explain functionalities, offer assistance, and essentially, give the customer the power to know what to expect moving forward.
A person who opens a new checking account, for example, is likely to receive a drip campaign of follow-up welcome emails gradually educating them on all the online banking available, security measures, and budget apps. A beginner on an investment site may be guided to establish investment goals and gauge risk tolerance. Financial services are much more likely to retain clients who are engaged due to their custom debut experience.
Using Behavioral Triggers to Deliver Timely and Relevant Emails
Behavioral triggers allow banks to automate emails based on customer behavior providing the bank an opportunity to contact the customer in context, at the right time. For example, if a bank assesses a customer’s spend and where they’ve purchased it can send an automated email based on previous activity to set them on the correct path.
This is why, for example, if you go to the mortgage section of a bank’s website and never apply, you’ll still receive an e-mail with loan options and a loan officer assigned to you willing to help you get the best rate. If you’ve had a credit card for years and now you’ve unlocked your rewards program at a particular level, you’ll receive an e-mail congratulating you and asking if you’d like to know how to redeem those points. Financial service providers possess a real-time awareness of consumer activity that leads to an exponentially better e-mail marketing experience for the consumer.
Conclusion
This is why email matters in financial services. Email is the most simple interaction with clients and therefore breeds loyalty and subsequent expansion of revenue growth. When clients are emailed about services rendered, customized findings, articles of interest, loyalty rewards, and especially automation, it gives clients the interaction needed to do more than just pay a bill.
But beyond client loyalty offered by any company in any saturated financial marketplace is trust, safety, and continued value. An email marketing campaign based upon relevance and personalization will not only better inform clients, creating a better-informed clientele for the financial services firm, but also make the firm an authoritative option for anyone’s financial needs.
