Traditionally, referrals are one of the best sources of new business leads for financial services.
There is no point in arguing with you about it.
Financial advisors rely heavily on referrals as a source of new clients and lead generation. This is why referrals and testimonials should be a PART of your marketing strategy, but not the ONLY aspect of your the same.
Let us tell you why!
According to a study from Deloitte, millennials and Gen X are more likely to do their research when opting for wealth management solutions. They prefer using the same search engine that most people use for researching things- Google, of course!
As we work with leading financial brands, we identified trends that are common to the direct mail industry based on activity levels, formats, and channel improvements. Whenever possible, we help our clients monitor real-time reports based on usage, business requirements, campaigns, and more as a way to validate our observations.
Now that’s true…. Direct mail marketing is still effective!
Direct mail is still thriving, as any person with a mailbox can tell you about the same. Marketing through email is the most common method, followed by social media. Despite the substantial decline in physical mail people receive owing to the rise of digital communication, they still look forward to the daily visits of the postman.
Direct mail items are perceived as more personal than other forms of solicitation by the average person because they are reviewed within a day of receipt.
But, wait up!
Before starting with the same- let us talk about a few trends.
Direct Mail Trends & Formats
You may want to consider combining direct mail with email when targeting existing customers – especially since most already receive your emails. You increase your message’s chance of being seen by including direct mail in your email campaign. Direct mail is opened 90 percent of the time, but only 18% of marketing emails. However, response rates can be increased by up to 35% when these two channels are combined. Now, what does that means?
A bank that only communicates changes through email or digital channels risks losing a vast audience. Also, this audience is less likely to use online banking services or be digitally savvy. For instance, banks can use direct mail marketing to inform non-digital patrons of changes to their services and to encourage them to utilize online channels for more convenience.
Improving Direct Mail Strategies
Below are the best practices that will help you maximize your response rate and boost the overall effectiveness of your direct mail marketing campaign.
- Know your Competition & Market: You will get the greatest return if your offer stands out or is at least proximate to that of your market. Check out your competitor’s services or products before making your offer. Also, if you are unable to compete on the prices then focus on emphasizing your brand image and value proposition, which includes trust, premium services, and more.
- Get a Little Creative: Despite its long history, direct mail still has room for improvement. One such example is a Massachusetts-based credit union that used seed paper mailers to promote a new branch opening. Plants could be planted in the mailers, and they can be exchanged for gift certificates to local nurseries for anyone who brought them into the branch. Now, this modern approach is quite innovative. But it is also grounded when talking about the values of the local community, which include, residents living and supporting their businesses.
- Fetching Outcomes Through Personalizations: Many Financial service providers can reap positive outcomes with a personal touch with variable data printing. Somehow, this practice will help you extend your direct mail marketing campaign and its ability to reach out to the targeted audience. To do so, you can start with making a few minor changes like designs, and color palettes, verifying addresses using some of the best address checker tools, and more. Furthermore, this unique process can allow you to speak confidently in a more intimate yet human manner.
- Sending Your Mail Items to Non-Consumers: So, here is a secret instead of buying a customer mailing list having questionable precision, try working with a partner that can help identify inaccuracies and more according to your demographics. So, when you have stepped in the interesting prospects, the company will help you identify the right ones and work with you to grab their attention with informative mail items. For instance, well-designed flyers, and oversized postcards can be a little more effective because you don’t have to put them in envelopes.
- Adding a Multichannel Strategy: Today, customers wish to connect with financial institutions or service providers through print & mail with the flexibility to access online or mobile banking. It is why direct mail items are effective, can complement, and work in tandem with other modes of online marketing, etc. For instance, adding QRL or personalized URLs can enhance your response rate from non-customers by opting to combine your offline with online campaigns.
Well, money despairs are never distant from the lives or minds of people, especially when talking about times of trouble. Your direct mail campaign can play an important role and if you ask us- It is a relevant tool to stand out from others in the market, including your competition.
Lastly, always treat your potential and existing customers as people not as numbers. Remember that they have dreams, hopes, and a lifestyle to follow and achieve with your help. So, value it embrace it, and connect with them accordingly.