Email Marketing for Lending Institutions

Christian Berry | February 2, 2018

There is no doubt that marketing strategies have evolved throughout the decades, including some major changes over the the last twelve years with the creation of Facebook and the beginning of the Social Media Era.

In the early internet days (pre Twitter but post AOL) many businesses focused on email marketing; sending out mass emails to any and all potential and current clients. With the creation and expansion of other social media outlets, the concept of email marketing has recently been considered outdated. However, this could not be further from the truth. Email marketing, when done correctly, is still alive and well and is incredibly beneficial for lenders in particular, and here is why:

Good Communication

First and most importantly, emails are engaging. Unlike other advertising techniques, emails are more personalized. They allow you to make repeated contact that is “invasive,” it’s something that is from you to them, and it’s sitting in their inbox. It has a personal touch. An email also gives a potential client the opportunity and ability to reply directly to you. This open line of personal communication is essential in all business but is extra important when discussing something as personal as loaning money.

 

Individuals looking for loans are typically looking for a lender that they can trust and that they feel comfortable with, and a company that will send a personalized email immediately provides the potential client with a certain level of comfort.

Statistics

Sending emails also provides greater potential for a broader reach. If you are wondering how many people even use email anymore, there are currently 3.2 billion email accounts today, and 91% of people check their email at least daily. So yes, there is lots of traffic via email. Plus, email is not only a more personal platform to reach people at, but it is also associated with being more professional. Business minded people, including people looking into loans, are more likely to open up Gmail or Outlook before Facebook or Twitter. Email is also a “transactional medium” meaning that people are already expecting to get offers and make purchases via email. So not only will potential clients have a higher tolerance for receiving an email offer for an online loan, but they are already in the buying frame of mind just because they opened their email.

The ROI

Emails are also cost-effective and when done right have the highest ROI. On average, for every $1 spent on email marketing, there is a $44.25 return. Compare that to using keyword ads with an average ROI of $17 or banner ads with an average of $2.

Reporting

Lastly, you can track valuable information when using emails, especially if you use an email service. You can see open rates, deliverability, bounces, bad email addresses and more. This data is all tied directly to an email address, so you can know exactly who is interested and what content works the best. The Finance Industry and Email According to MailChimp, within the Business and Finance industry there is a 21.31% open rate for MailChimp emails sent to potential and current customers. Silverpop, another marketing software, reported similar stats in a 2014 study saying that in the Financial Services/ Banking/ Insurance industry there was a unique open rate of 22.4%. Alchemy Worx also did a study that showed the Finance and Banking industry had an average of 21.05% opens for all emails.

To Wrap Things Up

 

All in all, email marketing is not dead nor is it a dying art. When it comes to being personal but also professional, reaching as many people as possible and having high conversion rates, sending emails is still the most advantageous form of marketing. It has proven statistically successful among finance companies but it also just makes sense. People searching for loans come from all walks of life with different backgrounds and varying understanding of technology and media. They are also typically looking for a lender that they can trust. Emails provide more opportunity to reach these people, as it is the most widely used form of communication, but also provides a level of trust and comfort that other forms of marketing can’t do.

Christian Berry | February 2, 2018

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