Financial institutions like banks have a reputation to maintain, so people take them seriously. As a result, they sometimes need help appealing to customers and keeping them engaged. Fortunately, email marketing for banks exists to help maintain a balance between seriousness and creativity.
However, banks cannot use this strategy like other businesses do. Since they have so much personal information about their customers, they must proceed more carefully.
Therefore, it’s important to know the ins and outs of email marketing for banking before starting.
This article is perfect if you don’t know where to start your research. You’ll be familiar with the benefits, strategy steps, and some example campaigns. There will also be tips on choosing the best service, so let’s start!
The Importance of Email Marketing for Financial Services
Banking is all about building trust with your customers since it’s a highly sensitive business. Your customers must know their money is in safe hands. For that, you must create a deep connection with them and give them a sense of security. But how does any of that relate to email marketing for financial services?
Well, unlike other forms of marketing, emails reach your customers directly. That makes email marketing the most personalizable form of communication. It can make customers feel like you’re talking directly to them. Emails help you show that you care about your customers and understand their problems.
In return, customers are loyal to your brand, and that’s the first benefit of email marketing for banks.
Secondly, banks need to maintain consistent communication with their customers. From bank statements and security alerts to new offers and balance updates, every piece of information is time-sensitive.
Providing these updates through automated email campaigns makes your work easier, allowing you to focus on strategy and creative development.
This consistent communication also encourages customer engagement. To make your emails interactive, use friendly language and actionable CTAs. You can even use email marketing to experience growth on other channels.
However, transactional emails aren’t the only option you have. Email marketing can help you improve your customers’ financial literacy. Give them news and updates about security regulations and encourage them to take precautions.
As long as your emails are genuinely helpful, they’ll become a source of customer satisfaction. After all, you’re going the extra mile to ensure your customers’ data and money are safe.
How To Create an Email Marketing Strategy for Banks
Statistics reveal that the average email open rate for financial services is 27.1%. That’s relatively high when you compare it to other industries. So, it’s clear that ignoring email marketing for banking wouldn’t be a wise decision.
However, getting the ideal open and conversion rates requires a proper strategy. Emails that are all over the place or don’t help customers with their journeys might do more harm than good.
However, while creating email strategies for banks is similar to other industries, you must follow some extra steps. So, here’s how to create an email marketing strategy for banks.
1. Understand Your Audience and Set Marketing Goals
Understanding your audience is the first step to creating an effective email marketing strategy. This is even more important if you target a broad audience with an email blast.
Fortunately, banks collect a lot of data on customer interactions and financial behavior, making this process easier. Of course, some data will be off-limits due to privacy regulations. But you can still use factors like account type, activity, balance, etc., to judge your customers.
So, start by studying your existing customer database. See what type of accounts they have and how they interact with the bank. Are they frequently using their debit card, or do they have a history of using money transfer services?
Answering such questions will help you determine what type of emails would work best for your audience. For example, savers and investors might be more interested in growing their savings. Sending them emails about high-interest accounts or investment updates works best.
Additionally, research the market to get a broader view of your audience. You can also look at your competitors to see who they’re serving.
After understanding your audience, set goals for your email marketing strategy. Do you want to grow new account holders or drive website traffic through mass emails?
Remember, effective email campaigns are impossible without proper goals. Moreover, make sure these goals align with your overall marketing goals.
2. Build an Email List
Now that you have goals and audience research, start building an email list. Some people might argue it would be easier to buy an email list. However, this option could waste money and put you in legal trouble. So, using ethical methods is crucial, especially since you own a bank.
If you’re unsure where to start, you can ask for customer emails when they open an account. This would be the easiest and safest option since it would be a customer requirement.
However, you’ll also need email addresses to onboard new customers. For that, you can place strategic opt-in forms on your website’s homepage, product pages, and blog posts. Offer incentives like free financial guides or webinars in exchange for email addresses.
Besides, many people use banking apps for online transactions. So, encouraging existing mobile app users to receive notifications via email would be a good strategy.
On the other hand, you can create valuable content on your website blog and offer email subscriptions for regular updates. Another strategy is to run targeted social media campaigns or contests requiring email sign-ups to participate.
But whatever you do, don’t forget to segment the list based on customer preferences, demographics, etc.
3. Choose the Best Email Marketing Service for Banks and Start
Choosing the best email marketing service for banks is another step you must be careful with. Many will claim to be the best at what they do, but only some companies will suit your business.
So, the first thing you need to check is whether the company has served banks similar to yours. See if they have enough experience to complement your email marketing efforts.
Next, look for a service that focuses on security. Since banks handle sensitive financial data, the email service should also have robust security features.
Besides, the job of the service is to make your job easier. So, look for email list management, segmentation, and growth features. Also, check if the service lets you automate your email marketing campaigns. After all, you’ll have to be consistent with your emails. Doing so manually will present a higher chance of errors, not to mention the time it will take.
Other things to consider are compliance with regulations, deliverability rates, reporting and analytics, and customer support.
Once you’ve chosen an email service, start crafting compelling emails. Some email tools will help you by providing helpful suggestions in real-time.
But remember to strike a balance between professionalism and friendliness. Use easy language so everyone can understand what you’re saying. Lastly, ensure these email campaigns align with the goals you set in the first step.
Email Marketing for Banks: 4 Effective Campaigns for Engaged Customers
Now that you know how to create an email marketing strategy for banks, let’s learn how to use it. You can send multiple email campaigns to your customers depending on your goals.
However, some campaigns are so important that not sending them would be an email marketing mistake. On the other hand, you can keep your customers engaged if you do send these campaigns. But what are these campaigns, you might ask? The following four sections will answer your question.
1. Onboarding Emails
Many believe welcome emails are the first email banks should send their customers. But what about the email subscribers who haven’t yet opened an account in your bank? This is your chance to use email marketing to convert them. Here’s how.
Start by determining your unique selling points. What do you provide your customers that other banks don’t? Learn what your people want from businesses like yours.
Then, craft a compelling onboarding email by listing the benefits of opening an account with you. A compelling onboarding email can also increase your engagement rates for upcoming emails.
2. Welcome Emails
Welcome emails are your chance to make a positive first impression on your customers. When they open an account, sending them a warm message connects them to your business.
So, thank customers for choosing your bank and confirming their new accounts. Your immediate feedback will put them at ease.
It would also be a good idea to summarize your services. Also, include any steps that they need to take next. Studies have revealed that welcome messages also increase customer engagement rates.
If you own a bank, you can’t skip sending informative emails to your customers. The financial services industry is constantly changing. Keeping your customers in the loop will increase their satisfaction and encourage them to become loyal.
For example, people always find new ways to steal from bank accounts. Sending customers regular updates about the precautions to take will build a deep connection with them. It will also prove that you care about your customers and their money.
Moreover, you can easily send them updates about the investment industry, security guidelines, or new services as an email blast to target mass customers.
4. Notification Emails
Notification emails are the type of emails customers expect and want you to send. Banks who fail to send these messages quickly lose their customers. They wish to get confirmations after they make financial transactions.
That’s why these emails have the highest open rates. If the goal you set in the first step was more open rates, you can’t skip notification email campaigns.
Some examples of notification emails include transactions, account changes, account sign-ins, suspicious activity, low balances, and pending payments.
Email Marketing for a Bank Compliance: How To Avoid Legal Issues
Despite the importance of email marketing for bank compliance, only large, established businesses are fully aware of it. That’s because they have dedicated legal and marketing teams responsible for this compliance.
Small businesses and startups usually lack proper legal knowledge. If you belong to the second group, here’s what you need to know about compliance.
Depending on your location, you need to follow two main regulations. The CAN-SPAM Act applies in the U.S., while the General Data Protection Regulation (GDPR) in Europe. Both regulations focus on the same thing, with user privacy at the forefront.
However, the CAN-SPAM Act requires businesses to include accurate sender information, obtain consent, and provide clear unsubscribe options.
Therefore, ask customers about the types of emails they would like to receive. Provide them with a link to unsubscribe and make the process easy. Plus, don’t send too many emails, and be transparent about how you use customer data.
Lastly, keep an eye on any new guidelines your government might add. The ideal scenario would be to hire a lawyer or legal team to handle these tasks. But even if you don’t have the budget for that, you can easily find the information on government websites.
Make Your Financial Marketing More Personal With Emails
Email marketing for banks can be beneficial for financial businesses. Use effective strategies to collect email addresses and avoid buying email lists at all costs. This messes with your reputation and may be a waste of money.
Email is a personalizable form of communication that allows banks to appear professional and friendly. You can use emails as an important part of your bank’s marketing. At Beambox, this is our specialty.
We offer all-in-one WiFi marketing software that helps you collect contacts and automate the campaigns. All in a compliant way. Start your trial today!
