How to Do Marketing for Financial Services
Updated on August 23, 2021 | by James Stone
As it stands, financial services marketing accounts for roughly 14% of the global spending on digital advertising. Statistically, for every $92 spend to acquire a lead, $1 of that budget goes towards customer conversion. At first glance, this might seem like some kind of oversight, but instead, it speaks to a much more complex situation that exists in the advertising space when it comes to marketing financial services. Any financial services provider looking to effectively market their products must traverse what can only be described as a complicated marketing landscape governed by a slew of regulatory hurdles. In addition to such challenges, many are still reliant on outdated modes of traditional marketing. Thus, to meet the challenges of the present day and the future, financial services providers need to reboot their marketing strategies – something that starts with a fundamental understanding of digital marketing and its application to the field of financial services.
Which Financial Institutions, Entities, and Individuals Can Benefit from Financial Services Marketing?
Financial services marketing can aid a slew of institutions, entities, and individuals involved in the selling of financial services. These include:
- Accounting and tax advisory firms
- Asset-based lending and equipment financing
- Credit unions
- Credit card companies
- Day traders investing in FTSE100 companies
- Insurance companies
- Investment banks and companies
- Mortgage providers
- Retail and commercial banks
The Need to Embrace Digital Marketing
For the longest time financial services providers have utilized traditional marketing strategies and while still effective, are no longer solely sufficient. The way around this archaic stumbling block is to embrace digital marketing techniques such as email marketing, search engine optimization (SEO), content marketing, search engine marketing (SEM), and social media marketing. In addition to employing these tactics, the budget set aside for these effective marketing practices should be equal to or exceed those set aside for traditional marketing. In essence, digital marketing should not merely be deemed an add-on.
Use Omnichannel Marketing & Social Media
Omnichannel digital marketing has rightly earned its popularity. In a survey conducted on the use of omnichannel marketing, customer engagement was found to increase by over 18% compared to a mere 5.4% for single-channel marketing campaigns. In addition, omnichannel marketing has proven to achieve a 90% higher retention rate. What does it mean for financial services? It means that the marketing campaign must provide an incorporated experience that extends to websites, mobile apps, email, text messages, social media, and other applicable digital avenues. In addition, such integrated campaigns must utilize touchpoints and react to customer interaction. In other words, if the customer opens a marketing email, it must trigger a text message with a link to an applicable landing page.
The Power of Content Marketing
In a study conducted by Facebook IQ, a Facebook research institution, it was found that a mere 8% of millennials place their trust in financial institutions for helpful info and guidance. The message is clear: financial service providers are facing an uphill battle. To nurture this trust, “relationship marketing” is needed as it both educates and empowers the customer and thus veers them in the right direction. The most effective way to achieve such ends is through content marketing, an inbound strategy that uses text, video, and audio to generate high-quality content that engages, persuades, and converts. It’s been proven that customer education by way of a compelling content narrative has resulted in client loyalty to financial services. As they say, “content is king.”