Email marketing is a digital marketing communication tool that has aided many companies in their business success. According to TechNomads, email marketing returns $44 for every $1 spent. If you are not utilizing it, you may want to consider it.
In fact, according to RIA Intel, email gets more traffic for financial advisors than any other industry.
Email marketing can be used to build trust, credibility, and rapport, while converting prospects to customers. Email gives you a great opportunity to put time on your side, as you grow a relationship and nurture a prospect through the evaluation and buying process.
There are many benefits to utilizing this marketing channel, including:
- Building a more personalized relationship with your customer: Delivering personalized emails will create a sense of trust between you and your reader.
- Informing your audience: Financial services have a lot more to offer than just basic services. Inform your customers about what else you can provide for them.
- Expanding your marketing promotions to a new channel: Trying out new marketing tactics doesn’t hurt. It can be a great decision for your business.
- Easing readers’ minds about the financial process stress: Financial planning and financial decisions are sources of stress for people, so creating messages that ease the readers mind could be beneficial.
- Educating readers on successful investment strategies: This is probably the most important method used by financial companies to attract and capture new customers.
Below are strategies that have proven to work for this sector.
1. Appeal to newer investors by helping them improve their financial knowledge
The financial process can be extremely stressful for many people. Other than a person’s health and loved ones, there’s few things more important and personal to people than their money.
To make investing and finance accessible and available for everyone, keep it simple. Creating videos, explaining concepts, and sharing your knowledge can be beneficial to your customers. Dave Ramsey hosts The Ramsey Show, a podcast that aims to discuss anything money related, such as debt, retirement, budgeting, saving, insurance, taxes, home buying, and more. His podcast coupled with short YouTube videos captures his audience and seeks to inform.
2. Brand your newsletter with a title
A lot of newsletters try to make it more fun by calling it a fun title. Robinhood calls their newsletter “Robinhood Snacks: Digestible Financial News”. I don’t know about you, but reading that title makes me interested in reading further.
3. Offer benefits
Why would a customer want to be on your email newsletter? Besides learning something, it’s often because of something free. A free stock report, a free portfolio review, a free analyst report, a free three months added to your subscription.
It has been proven that giving away something often helps you sell something else down the road. This is called a loss leader, and is probably the most commonly-used marketing approach. Carefully calculate how the numbers can work for you, in a best-case and worst-case scenario, before launching your loss-leader promotion.
With investment newsletters, it’s easy to offer a certain amount of information for free. Want more after your free trial? Get out the credit card for the real premium content.
In fact, we’ve written previously about the single most successful email marketing business model in a whitepaper, which includes free content as a key part of the magic of three.
This newsletter offers a free consultation. It mentions the word “free” multiple times throughout the email. One mention is bolded and another is in a call-to-action. People love free stuff.
4. Offer educational opportunities
Financial literacy programs can educate, as well as encourage financial actions.
Just to give you an idea, some common topics include:
- What should I do with $20,000?
- How do I pay taxes?
- How much should I invest in my retirement fund to become a millionaire at age 70?
- Are growth stocks better now, or value stocks?
- Are index funds really the best, or how about some target date funds, or inverse funds, or industry specific funds?
When you answer these questions with wisdom and authority for your readers, you create goodwill and can develop a following of people who want to hear what you have to say.
5. Create personalized messages
There are multiple strategies to complete this.
You could start and end every email with their name. For example, “Hi [First Name],” at the beginning and “Thank you [First Name], at the end. Or, you could include it in the subject line, like “[First Name], You’re Never Going to Believe This.”
You could also personalize it by segmenting your list. Everyone on your list could be at different points of the customer journey. Someone who purchases your product or service has different intentions and needs than someone that is just learning about your company. You can even segment with age, gender, lifestyle, you name it! This will lead to higher open rates, higher engagement, and less unsubscribes.
And of course keep track of specific interest areas that your prospects have indicated. A new 20-something investor will want to know about financial information that is far different from an age 65+ recent retiree.
6. Provide useful tips, ideas, suggestions, and selections that have good value
All kinds of advice on investments can be made through effective emails and email marketing. Many investment companies produce various research on topics like: bond investing, SPACs, ETFs, hot stocks, value stocks, income stocks, REITs, dividend stocks, turnaround stocks, municipal bonds, real estate investing, gold and precious metals investing, investing during times of inflation, stock market timing, hedge funds, and many many more.
After the new subscriber gets a few days, weeks or months of the free newsletter with good picks and sound advice, it’s time to upgrade them to a paid subscriber.
A good example of a service that offers quality content at a very fair price is the Motley Fool Stock Advisor. Every month, they reveal two stocks that they believe will outperform others in the market in a minimum of five years. With a subscription price of $99 per year, this newsletter has proven its value through their stock tips. It a fair price, and of course one good stock recommendation will cover that subscription price many times over.
Email can be one of the best strategies for a financial advisor or investment company. Make good use of tools provided by Emal Service Providers (ESPs) like segmentation, templates, inserting photos and gifs, split tests, dynamic content blocks, and personalized messages to help reach yoru email marketing goals.
Employ these tactics and let us know how you do! Check out what Net Atlantic can do for your financial service company.
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