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The financial services industry faces unique challenges, such as meeting strict regulatory compliance measures when trying to rely on marketing automation. Becoming more mindful of these challenges is the first step in creating more optimized omnichannel marketing campaigns.
Whether your goal is to increase customer lifetime value, acquire new customers, or generate quality leads, pinpointing where your campaigns fall short is crucial to your growth and ongoing success.
Ready to overcome some of the top marketing challenges affecting the financial services industry? Let's dive in!
The financial services sector is one of the most tightly regulated industries. Many financial services companies stick to traditional forms of marketing — even if there are other optimal channels they could use for an omnichannel strategy.
Do you spend a hefty amount of your marketing budget optimizing online experiences yet still use manual processes to send mail and manage addresses? If so, you could find yourself in hot water.
Did you know that 20% of addresses entered online contain errors? These errors cause customer verification to fail, creating a problematic and costly domino effect concerning Know Your Customer (KYC) compliance. Direct mail for financial services can help maintain regulatory compliance, but only when implemented correctly.
BlueChip Financial's partnership with Lob is a prime example of how automated direct mail for financial services can revolutionize any marketing strategy. Since implementation, BlueChip has enjoyed a 50% reduction in failed mailings and extensive data improvements by removing more than half of their undeliverable addresses. Real-time address verification made this possible, allowing BlueChip to reduce spending significantly.
Read more: Getting Started with Address Verification for Financial Services
Considering only 36% of consumers say their banks meet expectations concerning customer experience, there is an apparent disconnect in the industry.
Since the financial services industry heavily relies on physical mail, accounting for 60% of all transactional mail in the United States, it's time for companies to revolutionize their approach. Mail-based communications are imperative, but only when done correctly. Those using traditional, manual processes face issues surrounding timely customer engagement by potentially missing a relevant marketing moment with customers.
The solution here is to treat direct mail for financial services more like digital communications. Lob, makes it possible to create and deliver mail by integrating directly with CRM, loan servicing, or other customer platforms — all while benefiting from the power of automation. You can set up direct mail marketing campaigns based on customer behavior or triggers so they always receive relevant messages at the right time.
The marketing world is constantly evolving. When you think you have nailed your strategy, a new social media platform launches, or Google releases an update. So, what works today may not work months down the road.
The key here is to seek out new types of content to deliver the right message at the right time. Innovate and offer unique marketing materials that ensure higher conversion rates and a more significant return on investment.
In the current age of digital-centric marketing, it's understandable why you'd want to explore email marketing and social media, and you should. However, don't let it blind you to the tried-and-tested success of direct mail for all types of correspondence, from billing to promotions. Data shows that 64% of consumers take action on direct mail due to an offer or promotion — from which financial services companies can benefit.
For example, investing in personalized buckslips (those little inserts included in mailings with special information or offers). This unique and creative strategy could be the missing piece within your current direct mail strategy. A slight pivot like this could lead to higher conversion rates without much additional effort or spending — especially if you swap this strategy for another tactic that hasn't been overly successful.
Recommended reading: The Buck Starts Here: Get Started with Buckslips in Direct Mail
Testing is imperative to your success if you want to determine the best channels for an upcoming campaign or how often you send an email or piece of mail. Split-testing is an ideal strategy because it's a fast, clear method. However, this option is limited if you want to test multiple variables within a campaign. In this case, multivariate testing is the better choice.
Some variables you can test include:
For example, you could split-test your database with an offer to one group of customers and something different to another, using the same design work. One group could receive an offer of $5 off, whereas the other may receive 20% off. The monetary value would be the same, but the response may differ based on how the offer is presented. To test different design variables, partner with a platform that offers professionally pre-built templates.
Related: How to Use Direct Mail Testing to Optimize Your Campaigns
Regardless of what you're testing, prioritizing data-based decision-making helps you boost conversion rates and achieve a higher ROI. The more you implement this tactic, the more confidence you'll gain to experiment and optimize omnichannel campaigns.
As you uncover your most significant marketing challenges, focus on channels and strategies that supercharge your ROI. Direct mail can seem daunting, as the logistics of pulling off successful campaigns appear complex. However, don't let that hinder you from leveraging this integral channel.
Lob simplifies direct mail for financial services, offering the only automation platform to transform direct mail into intelligent mail. Ready to start exploring the power of connected, personalized, and measurable direct mail? Sign up for your demo today.
Before you talk to our direct mail marketing experts, want to dive into the topic of direct mail for financial services more in-depth? Get your complimentary copy of our eBook, The Modern Marketer's Guide to Intelligent Direct Mail: Financial Services & Banking Edition!
