Digital marketing for financial services companies
The Internet has drastically transformed the way companies engage and promote their services to customers, and nearly every industry has embraced this change. However, companies in the financial services industry are usually slow to change. Many banks, credit unions, financial advisory firms, and insurance companies have set ways to do things, and usually initiating any changes require a lengthy process due to regulatory rules.
Each day, the digital environment is picking up momentum. Since financial services companies are reliant on client acquisition and retention, and above all, on developing great client relationships, they must keep up or run the risk of losing customers and market shares.
Luckily, digital marketing allows financial services companies to be agile when it comes to creating customer-centric communications and experiences while being compliant with regulatory rules.
How financial services companies benefit from digital marketing
An effective digital marketing strategy is a great way to engage and build a relationship with your clients. Trends among today’s clients in the financial services industry show that they want a digital relationship with their institution – in fact, they prefer it. If you want to deliver a great customer experience, it entails creating and optimizing a strong digital presence, not just in how you provide actual services but how you market those services.
Over 70% of potential clients are perfectly happy to research their financial options through entirely digital means. This means that investing in only advertisements isn’t the way forward, but rather your company needs to look at how it can provide advice that will lead a client through the customer’s journey while building trust in your brand. The more you can focus on engaging with your clients on how and where they want to be engaged with, the better you should be able to convert.
Here are a few results that your company will obtain:
- Increase direct engagement with your clients
- Lower customer acquisition and retention costs
- Generate quality leads
- Higher overall conversion rate
- Receive insights into consumer behavior
- Deliver a better customer experience
6 digital marketing strategies for financial services companies
1. Content marketing & Search engine optimization (SEO)
Content marketing is one of the most effective digital marketing strategies that help you to deliver truly relevant and useful content to potential and existing clients. When financial companies combine various content forms, such as blogs, video, white papers, e-books, webinars, case studies, etc., they can capture the client’s attention and provide the reasons for doing business with you. Since the financial services sector is heavily reliant on personal relationships, content marketing is necessary to strengthen that relationship and establish trust.
SEO is the tactic of optimizing your website to increase the quantity and quality of web traffic being received through organic “free” search engine results. Since 70% of clicks on search engines go to organic traffic, ranking at the top of search engine result pages (SERPs) should be at the top of your marketing priorities.
A dynamic SEO and Content Marketing strategy can increase your site’s ranking and web traffic, turn visitors into clients, grow your brand awareness and online reputation, build trust and credibility, and engage current clients to learn about other products you offer.
2. Social media
Financial services companies need to harness the great power of social media to enhance customer service, manage their reputation, and obtain a competitive advantage. Social media humanizes customer service, brings businesses closer to their stakeholders, and makes information more accessible.
Social media is a great way to connect with your target audience and build brand awareness. For example, you can show how real people work at your company to bring the best products to them. Also, you could post some success stories of your clients, as this directly reflects the kind of service you provide.
3. Pay-per-click (PPC) & Retargeting ads
Pay-per-click advertising is a type of paid marketing that can appear on search engines, social media platforms, and a variety of other digital channels. Pay-per-click is one of the most effective forms of advertising that allows you to simply pay a fee each time one of your ads is clicked. The main benefit of PPC advertising for your financial company is its ability to drive targeted visitors to your products. Instead of marketing to everyone, you can use digital ads cost-effectively by focusing on relevant target groups.
Since your target audience may take time before converting, using retargeting ads will enable you to reach out to those who have interacted with your company on one of the digital channels that you have a presence on. The data that you have collected will allow you to re-engage with them by showing tailored ads that meet their criteria to get them to take a specific action with your company.
4. Marketing automation + CRM
Marketing automation is software that automates marketing efforts, such as emails, social media posts, and other online activities while tracking and measuring programs to improve ROI. When utilized properly, marketing automation helps you manage your business’s communications and marketing, ensuring that qualified leads are being properly directed into the sales funnel. Also, it allows for the right messages to get to the right people at the right time.
By using marketing automation, you’ll take most of the guesswork out of the equation at the same time as you create a standard operating procedure for important tasks. This way you can also stop worrying about tedious marketing tasks and focus on more profitable activities.
5. Affiliate marketing
Affiliate marketing is the practice of advertising your products or services on websites that your customers visit. Since finance companies are increasingly focusing on acquiring valuable customers while maneuvering through this competitive industry, it can be smart to partner with an affiliate that your target audience is influenced by.
For example, you can collaborate with Rachel Cruze from The Rachel Cruze Show to reach people who are interested in saving for the future, or NerdWallet.com to educate people on selecting the right mortgage. These financial advice websites rank high for people searching for “best way to start with investments”, “best small business checking accounts”, etc. One of the main benefits of affiliate marketing is that it’s a great tactic because you only pay a commission for leads or sales after they occur.
The potential that customer data brings is enormous, which is something that companies understand and spend more time investing in. The real value in data and analytics is the ability to turn it into practical and actionable insights that are used as a basis for the business strategy. Using the insights from data and analytics to improve the customer experience, and optimize risk controls and business outcomes are a few of the best things you can do to secure the growth and profitability of your company.