The changing perception of emails
At one time, emails were at the forefront of the digital age. They were cool. So cool, in fact, that they were once frowned on by financial institutions, who stuck to the good, old-fashioned letter. Emails weren’t corporate enough. They weren’t conservative enough. Not highbrow enough.
But that’s all changed. The ever-evolving digital landscape means that emails have lost their cool. The young and trendy hipsters of today communicate via WhatsApp, Snapchat, and Instagram. Not by email.
This has led to a mindset shift in the finance industry, which now feels emails are a safe option. Having said that, emails are still mainly being used in operational communications, such as managing accounts and customer relations.
Why the reluctance?
So, why have banks and other financial companies been reluctant to make use of email for marketing purposes?
One reason is a concern about compliance issues – email platforms need to adhere to SEC and FSA requirements, for instance. Another could be their fear of annoying customers by clogging-up their inboxes. The distrust caused by dodgy scammers promising a share in a fake million-pound inheritance in return for your bank details might also be putting financial companies off using emails.
Missing out through poor execution
What’s more, with average click-through rates at a paltry 2-3%, those within the financial services sector who are using email marketing aren’t even doing it very well.
But if used properly, email marketing could open up a wealth of information and opportunity for financial firms. By using marketing analytics data to carefully measure online behaviour and segment audiences, finance companies will be able to send targeted and personalised emails to customers in an efficient and cost-effective way. Do this properly (potentially with a good email marketing manager in tow), and engagement levels will hit the roof.
Let us know what you think of more finance-related emails coming to your inbox by commenting below or tweeting us @strattoncraig.