Email marketing offers the best return on investment and is 40 times more effective at bringing in real customers than social media.
But what makes email marketing so effective for financial firms?
It serves as a direct line to clients, delivering essential updates and personalized financial advice that can influence client decisions. Whether it's the latest on market trends, updates on financial regulations, or personalized investment advice, email ensures that your message is both seen and impactful.
In this article, we'll explore why email marketing is essential for financial firms and how you can use it to improve your marketing efforts.
Financial firms traditionally rely on networking, referrals, and print ads to gain clients. These direct and personal methods help build trust in a sector where trust is critical.
However, they can be costly and hard to measure.
Digital marketing is gaining traction in the financial industry due to its cost efficiency and broad reach.
Techniques like content marketing, social media, and search engine optimization help firms establish themselves as industry leaders and engage with a wider audience. These methods also allow for precise targeting and real-time tracking of marketing effectiveness.
Email marketing allows firms to communicate directly with clients in a personal and secure manner. Unlike social media or other public platforms, email provides a private channel for sharing sensitive information, such as market updates, investment advice, and financial reports.
Moreover, email is less invasive than phone calls or text messages, making it a preferred choice for communicating sensitive financial information.
Emails allow for customized messages that cater directly to the individual needs and interests of each client. For instance, if a client has shown interest in retirement planning, you can send them specific articles and tips on this topic.
Emails can deliver targeted, valuable content that addresses the specific needs and interests of your clients.
For example, sharing insightful analysis of market trends, personalized investment advice, or timely updates about financial planning can keep clients informed. They're assured that they're making well-informed financial decisions with your guidance.
Emails also serve as an effective platform for soliciting feedback from clients, allowing them to voice their satisfaction or concerns. This shows that you value their opinions and also gives you valuable insights into how you can improve your services.
Regular communication helps to establish a strong relationship, making clients feel valued and informed. This, in turn, can lead to increased client retention and loyalty.
Compared to other marketing channels, email marketing requires a much lower upfront investment. You don't need a large budget for production or distribution.
The primary costs involve subscribing to an email marketing service and possibly some initial setup for design templates, which are generally minimal.
Email marketing also often delivers a significant return on investment. Because it allows for direct and personalized communication with clients, you can achieve more precise targeting and better engagement rates.
A direct line to your audience often results in higher conversion rates from promotions or calls to action within the emails.
Email marketing is not only cost-effective but also sustainable over the long term. Once you have established templates and a strategy, the ongoing costs can be manageable.
The journey from a potential lead to a loyal client isn't immediate. Email marketing gradually nurtures the process by providing consistent, relevant information tailored to the prospect's interests and needs.
For instance, sending a series of emails that guide a prospect through the basics of investment strategies can build their understanding and trust in your expertise over time.
Often, prospects need to feel educated and informed before they decide to commit to financial services. Through email marketing, you can deliver educational content that helps demystify financial processes or market trends.
Creating a successful email marketing campaign requires a well-thought-out plan. Here are some key strategies to help you get started.
Knowing who your clients are, understanding their needs, and how they interact with your communications will greatly increase the impact of your marketing efforts.
Many wealth advisors often cater to specific demographics or industries, such as retirees, which have unique financial needs and communication preferences.
You can divide your client base into smaller groups based on specific characteristics to tailor your communications more precisely.
If your firm primarily assists retirees, your email content should focus on retirement planning, estate management, and wealth preservation–topics that are most relevant to this group.
Retirees might also prefer easy-to-understand language that explains complex financial concepts in simple terms. Acknowledging this in your emails show that you understand their specific stage of life and financial concerns.
For financial firms, where the subject matter can often be complex or niche, it's especially important to craft content that is engaging and easily digestible.
Start by deeply understanding your clients' concerns. What are their primary financial concerns? Are they looking to grow their wealth, manage student loan debt, or plan for retirement?
The answers to these questions should guide the themes and topics of your emails. If a segment of your audience is nearing retirement age, content around retirement planning and estate management might be particularly relevant and engaging.
Financial topics can be intimidating due to their complexity. So, make your content accessible by using clear, simple language instead of technical terms that might confuse readers who aren't financial experts.
When complex concepts need to be discussed, break them down into simpler parts or use analogies to make them easier to understand.
Remember, people connect with stories more than dry facts. Where possible, use storytelling to illustrate financial principles or the benefits of certain financial strategies. You can share success stories of how your firm has helped clients achieve their financial goals.
The design of your emails is just as important as the content. A well-designed email captures attention and improves readability and engagement.
Ensure that your email design aligns with your firm's brand identity. This includes using your brand's color scheme, logo, and typography consistently across all communications. A consistent brand presentation helps build recognition and trust among your clients.
The layout of your emails should prioritize clarity and ease of reading. A clean and organized design with ample white space can prevent the content from appearing cluttered.
Also, choose fonts that are easy to read on both desktop and mobile devices. Typically, sans-serif fonts like Arial or Helvetica are good choices for digital readability.
With more people accessing their emails on mobile devices, it's also important to ensure that your email templates are easy to navigate on smaller screens. Responsive design techniques allow your email layout to adjust automatically to the size of the screen on which it's being viewed.
Personalization makes each client feel as if your emails are crafted just for them. If a client has shown interest in retirement planning, focus your emails to them on retirement topics, providing useful tips and relevant services.
Another way to personalize is by using dynamic content that changes based on the client's latest interactions or needs, ensuring they always receive information that is most useful to them.
Automation helps you send emails efficiently and at the right time without needing to do it manually every time. Start by setting up automatic welcome emails that go out as soon as someone signs up or opens a new account.
You can also use automation for follow-up emails based on specific actions your clients take. For instance, if a client looks at a service on your website but doesn't ask for more details, an automated email could offer more information or suggest setting up a meeting.
You should be familiar with Securities and Exchange Commision (SEC) and Financial Industry Regulatory Authority (FINRA) when conducting email marketing. These regulations ensure that all financial information shared through emails is transparent and protects consumers from misleading claims.
Make sure that any financial information you share is clear and truthful, avoiding any language that investments are less risky or more profitable than they actually are. Financial communications should strive
Every email should also include necessary disclaimers and disclosures, such as explaining the risks involved with certain investments and openly stating if your firm has a stake in them.
Furthermore, SEC and FINRA rules require that all email communications be kept on record for a period of up to five years. This makes it possible to check back on any past communications if needed.
If there’s any potential conflict of interest related to the products or services being promoted in your emails, you must be able to disclose these. Clients appreciate honestly and transparency, and being upfront about any potential biases helps to foster long-term relationships.
It's especially important to maintain high deliverability for financial firms, where emails often contain critical financial advice and updates.
Certain words and phrases can trigger spam filters, especially in the financial sector, where terms like "guaranteed return" or "risk-free investment" raise red flags. So, be mindful of the language you use in both the subject line and the body of your email.
You must regularly remove inactive subscribers and those who have not engaged with your emails for a long period. This improves your engagement rates and reduces the chance of being marked as spam by recipients who no longer wish to receive your communications.
It's also important to use a recognizable sender name and email address, such as your firm's name or the name of a well-known representative from your firm. Recipients are more likely to recognize the email as legitimate and less likely to mark it as spam.
Lastly, before sending out a large batch of emails, test them to see how they perform in terms of deliverability. You can send your emails to accounts across different email providers and see if they land in the inbox or spam folder. This can help you catch potential issues before they impact your broader audience.
Looking to keep the lines of communication with your clients without stretching your budget? Step ahead of the competition and connect with your ideal clients through strategic, thoughtful email campaigns.
At AUM Growth Marketing, we specialize in optimizing email campaigns to ensure that your communications reach and truly resonate with your audience.
Schedule a call, and let's discuss how we can help you maximize your email marketing efforts.
A Husband, Father, and Business Owner. He is also a Digital Marketer and Finance Nerd with over a decade of lead generation experience managing a results-driven marketing agency for Wealth Management Companies. Aaron loves studying marketing, markets, video production, and strategy to better serve his clients.
Learn more about Aaron Watson
