How to Use Trigger-Based Direct Mail for Financial Services

As more and more people move to online and mobile financial services, fewer people are physically walking through the doors of banks, lending companies, and other financial organizations. This lack of traffic makes it more challenging to market fintech products effectively — especially when aiming to send personalized messages.

It's no secret that direct mail is highly effective —in fact, 67% of marketers say it delivers the best ROI of any channel they use—so why not take your fintech mail strategy to the next level with trigger-based direct mail?

This method will allow you to use consumer behavior to create more personalized, relevant messages that deliver higher response rates and ROI.

What is trigger-based direct mail?

In the past, triggers were limited to online activity, but not anymore. Advances in technology have allowed marketers to deliver personalized, relevant messages to consumers at home through the power of digital-level automation.

Trigger-based direct mail is physical mail sent in response to a specific consumer event or action. There are endless trigger variations, so the ones you choose highly depend on your industry and goals. The key is to align triggers with your goals and the needs of your target audience.

In the world of financial services, these events are typically behavioral triggers. For example, a person may have recently looked up their FICO score or paid off their credit card. Their actions are the triggers, which may result in offers. Would the consumer benefit from an upgrade? Perhaps they would be interested in debt consolidation?

This approach leads to higher response rates and ROI. Best of all, direct mail and email mail marketing work better together. Take a look at the stats:

• On its own, direct mail has a 13x higher base response rate than email
• With previous purchase the response rate increases to 18%
• Combined with email, responses go to 27%

Recommended reading: What About Offline? FinTech's Digital Transformation Initiatives Miss an Important Touchpoint

Examples of how trigger-based campaigns apply to fintech direct mail

• Trigger a customer acquisition offer to prospects based on browsing history.
• If new cardholders are not active in the first month of receiving their card, a direct mailpiece can be sent to educate them about the card's unique features and the perks of using it.

• If the card came with a promotional offer, such as 0% interest over 12 months, this is something to reinforce.
• The same applies to active users. Promotions can be emphasized to increase card usage. For example, if data shows that certain cardholders are low-level users, incentives can be sent to encourage greater use, such as extra bonus points during a specific period.

If there are signs of potential account closures, you could market high-level services or point out benefits to convey the product's value. The goal here is to improve customer retention. Trigger-based fintech mail campaigns can also address triggered appreciation letters.

Check out this example from PenFed Credit Union that was used to acquire new customers:

How to get started with a trigger-based direct mail strategy

To create triggers for your fintech direct mail campaign, take the following steps.

• Step one: Outline your goals and need for a trigger. For example, is there a point in the customer journey where response tends to drop off? If so, this is a great place to start.
• Step two: Decide on what your trigger criteria will be. When will it occur?
• Step three: Ensure your CRM or marketing automation platform has the data you need for the triggers you intend to use. Then, ensure your automated direct mail platform has integrations that make the entire process seamless.

When you initially select your triggers or choose new ones based on emerging data, focus on what aspects of your business can be improved through trigger-based direct mail campaigns. What action do you need your audience to take to achieve that improvement? What data do you have available to leverage and support your goals? Is there data missing that you should start collecting?

By asking these questions, you can define events and criteria that would trigger a piece of relevant fintech mail.

Related: The Anatomy of an Awesome Financial Services Letter

Lob can power your fintech direct mail campaigns

If you want to automate offline communications and eliminate costly manual workflows, Lob can help.

With Lob, you can:

• Integrate direct mail with your internal systems, triggering communications based on milestones or customer behavior
• Know when mail is sent and when the recipient receives it
• Standardize address data at the point of entry and verify every address before your mail is sent
• Meet security and compliance regulations

Recommended reading: See how Saylent improved customer engagement for banks and credit unions.

Schedule a demo to see just how to trigger direct mail using Lob's automated direct mail and address verification.