According to a new Yes Marketing study, more than two in five financial services clients say they rarely or never receive relevant marketing communications from financial services organizations they’ve used in the past or are now using.
Furthermore, nearly a quarter (22%) of consumers believe they hear from firms too frequently through channels such as email, SMS (short message service), push notifications, social media, and display ads, while 8% say they do not hear from companies through those same channels frequently enough. In the “too frequent” group, GenZers (18-21 year-olds) were the most likely to claim that companies communicate with them too frequently across practically all channels.
As fintech brands gain popularity among consumers and niche institutions (e.g., investment firms, credit unions, etc.) increase their services and offers, the emphasis is on all financial services industry to strengthen their communication, and email marketing strategies with current clients.
What exactly is email marketing in the financial services industry?
Most bank customers just create an account to get their paychecks and use the bank’s basic financial services.
Financial services, on the other hand, have more to offer than just basic services.
Email marketing is a great approach to get your clients excited about the additional services you offer.
Email marketing for financial services refers to the practice of developing email strategies and sending highly targeted and tailored emails to your clients. You can customize customer experiences with email marketing based on their preferences and data, as well as their interactions with the financial services provider.
How financial companies may boost customer retention through email marketing?
Leading firms across industries know the value of customer retention and continue to invest extensively in this area, and the financial services sector is no exception. However, customer retention in the financial industry is becoming increasingly difficult to sustain as customers have more options than ever before.
On the flip side, the same Yes Marketing study discovered that 72% of clients are not considering transferring to a new financial services firm, a figure that appears to be high on the surface. However, given a large amount of research and processes involved in transferring banks or other financial services providers, it is surprising that 27% of customers are considering leaving.
Brands that use email marketing well will continue to create long-term consumer relationships while preventing new fintech players from gaining market share. Here are the 4 ultimate secrets of email marketing for customer retention in the financial services industry.
1. Include educational content
You’re undoubtedly already utilizing email marketing to interact with customers, but don’t use it to advertise yourself. Instead, produce instructive content that ties to your offerings in a roundabout way and promotes your organization as a reliable source of financial guidance.
You may, for example, provide budgeting advice, guidelines on paying off student loans, or schedules for saving for retirement. Customers can, for example, provide an interactive timeline to see how much money they could save by altering their contributions or have a ‘Learning Center’ where clients can get solutions to common questions.
2. Use age to personalize email messages
In the financial services business, a consumer’s age has a considerable impact on the services and information that he or she needs. Use intelligent technologies and dynamic content modules to give the appropriate content to your consumers as they reach particular ages. A 30-year-old, for example, would be interested in learning how to save for his or her first home. Relevant material depending on age fosters customer confidence and keeps them returning for additional content and services.
It’s also crucial to realize that people’s financial conditions vary dramatically as they get older. Changes in life, such as a new job, marriage, or changing family situation, have a direct impact on the services a customer requires from his or her financial services provider. Companies should use customer lifecycle and journey mapping techniques to understand when customers are likely to switch institutions and utilize this as an opportunity to re-engage.
3. Be practical.
Convenience is a crucial influence in customers’ decisions to engage with any brand or organization, including financial services firms. Using a bank or financial institution should be a natural part of consumers’ daily lives. If it isn’t, they will switch to a more convenient provider.
What has this to do with email? Financial businesses can use email to not only communicate handy products (e.g., easy cash transfers), but also to keep customers up to date on the status of their accounts, eliminating the need for them to log in elsewhere, switch apps, or call their bank for updates. For example, it sends emails to customers after they pay or receive money, with a link to the transaction within the app.
4. Demonstrate that you are concerned about their preferences.
When it comes to marketing communications, one method to keep customers wordy that you genuinely care about what they want from your firm. Customers do not want to be treated as a number, and inquiring about their specific preferences provides them, the VIP treatment.
Use preference centers’ to directly ask customers how frequently they want to hear from you, their interests, financial objectives, future life events, and the channels via which they want to communicate with your organization – whether by email, text messaging, your app, or other channels.
It is simple to begin email marketing for a financial services company. You must determine the relationship you wish to build with your customer.
Is this a major bank-to-customer monotony? Is it a more individualized comprehension?
Financial services industry emails might alter your customers’ perceptions of your company. It is possible to transform a tedious, difficult financial transaction into a healthy client connection. And, finally, boost the lifetime value of your consumers.As new financial services and fintech brands steal customers’ attention and modify their expectations of financial institutions, it’s essential to reconsider your retention efforts. Email can be a terrific method to build long-term relationships with clients and keep them engaged as they face new and interesting life challenges.
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