Summary: Email may not have the
cutting edge, high-tech appeal of some of the other marketing tactics. However,
when done right, email marketing for financial advisors can be remarkably
effective. In order to build a productive email campaign, advisors should begin
by examining the needs of their audience. A broad-based “spray and pray”
approach is the quickest way to burn through your hard-earned email list. On
the other hand, highly targeted value-add communications will help you build
trust, drive referrals, and stay connected to your prospects and clients. Read
on for best practices (by email type) and some common email marketing mistakes
to avoid.
Recently, I was fortunate enough to participate in a lively discussion
with a thought leadership group comprised of forwarding thinking, young
marketers. The topic eventually turned to the effectiveness of email marketing
for financial advisors. Although opinions differed greatly on the types of
campaigns financial advisors should leverage, there was one thing we could all
agree on: Email marketing, when done correctly, is widely effective.
But what does that mean for financial advisor email
marketing, now that we are in 2019?
Email has certainly become a standard mode of communicating with clients
and prospects, but it is overused? Do people care about the emails they get
from a financial advisor? Isn’t newsletter marketing dead? And, most
importantly, should you make it easy on yourself and sign up for one of those
services that will generate and send marketing emails for you?
As with many things marketing, getting hard numbers and data can make
the difference between a great strategic decision and a dead-end money pit. So,
let’s look at some numbers.
- According to
CampaignMonitor data for 2019, average email open rates across
surveyed industries is 17.92%. Financial services enjoy a slightly more
favorable open rate than the average (18.23%).
- No
surprise here: It’s better to have prospects opt into your campaign. The same resource suggests that
open rates for permission-based campaigns (i.e. ones where a prospect or a
client has given you permission to email them) range between 30% and 40%.
That’s a significant upgrade!
- According
to HubSpot, 99% of people check their
email at least once a day. That means you have a good chance of
your prospect or client seeing your message when it comes in (as long as
it doesn’t get caught by the spam filters).
- CampaignMonitor
supplements that stat: More
than 50% of their survey respondents check their personal email account
more than 10 times a day, and it is by far their preferred way to receive
updates from brands.
- Finally,
marketers who use segmented campaigns note as much as a 760% increase in
revenue (CampaignMonitor, 2019 data).
So, the data would suggest that the
optimal combination for successful financial advisor email marketing should
look like this: Ask for permission, send regular emails, make your messaging
relevant for the recipient.
Which sounds like common sense.
As always, the devil’s in the detail. And so, I wanted to share with you
some common questions and specific best practices for financial advisor email
marketing campaigns. These are the types of campaigns that a firm of any size
can use with success. Campaigns can be super-simple, or you could go all out
and have them professionally designed to suit your style. So, don’t feel that
email marketing isn’t for you unless you have a big budget.
Should financial advisors build an email list — or
buy one?
Most advisors I know would prefer to do things in the most efficient way
possible. From that perspective, one might imagine that buying a list of
(ideally) pre-screened prospects from a data company would be faster and better
than building your own list through a sign-up form on your website.
The reality is a bit more complicated.
First off, the CAN SPAM Act of 2003 requires
anyone who purchases an email list with a commercial purpose to abide by
certain rules. While those rules do not include obtaining explicit permission
from the individuals on the list, they do require accurate transmission
information (i.e. who the email is from), non-deceptive subject headings, a
clear identification that the message is an advertisement, and an opt-out
provision that gives the recipient a choice about whether they wish to receive
future emails from you. If you are interested in a deeper dive into this
subject, this FAQ article has good
information. In summary, though, as long as you follow those
requirements, you can send emails until the recipient opts out — at least in
theory.
In practice, buying a list of emails exposes you to additional risks.
There’s a risk that the list was assembled through shady or outright illegal
means (such as address harvesting or dictionary attacks). Plus, there’s an (admittedly
small) chance that someone on the list has already opted out of receiving
emails from you before you purchased
the list. Either one of those risks can expose you to fines under the CAM SPAM
Act.
What exactly is permission in this
context? It could be implicit permission in the case of email recipients who
already have a relationship with you (through doing business together, being
acquainted socially, or being a part of the same charity or club). Or, it could
be explicit permission, like when a prospect types in an email address to
download a whitepaper or a checklist.
What about “renting” an email list?
There is another practice in the industry that’s known as “renting a
list”. When you “rent” someone’s email list, they email their list of
contacts on your behalf. You don’t get to
see any of the email addresses. Think of it as buying an ad that someone will
share with their list for a fee.
Is “renting” a list better than “buying” a list? Not necessarily. It’s
true that the risks are different. For one, even if you are merely renting a
list, the recipients did not give you permission.
The reader is not expecting an email from you, so they may feel annoyed and
sold to — not the mindset you need to convert skeptics into clients.
And then there is the elephant in the room.
At the end of the day, the provider of the list (whether they sell it or
rent it) is in the business of selling or renting lists. It’s in their best
interest to sell/rent a list as much as they can to maximize their profit. That
leads to the people on the list getting spammed with a high volume of
unexpected and unsolicited offers. Your offer can get lost among them. You may
also experience a high degree of unsubscribes, bounces, and spam complaints.
All of that adds up to a low ROI.
Bottom line: Buying or renting
an email list may seem like an inexpensive shortcut to reaching more prospects.
In reality, doing this can negatively affect the deliverability of the emails
you send to legitimate prospects, spoil your reputation, and result in a poor
ROI.
The names on any list you might buy or rent are likely to be “burned
out” by too much spam. Think about it… If you spent years building a solid list
of people who had opted into getting messages from you, would you sell it for
just cents per email address? So, if a list is available for sale, it’s
probably not the high-quality goldmine that the list company would have you
believe.
What should you do instead?
Build your own list by having people opt into getting emails from you.
Yes, a home-grown email list takes time to develop and nurture. However, doing
this will keep you on the right side of the anti-spam rules — and it will be
much more effective in terms of ROI and long-term practice growth potential.
Give your audience plenty of opportunities to subscribe to your emails by
adding a form to several locations on your website. Limit the volume of data
you collect up front (first name and email address are usually enough to get
started). In other words, make it very easy for them to say “yes” and join the
list.
Best practices for financial advisor email
marketing
So, you’ve developed a list of emails from prospects or clients. How can
you build an email marketing campaign that will nurture those relationships?
Here are some ideas that can work well for financial advisors.
1) The financial advisor newsletter
is alive!
Believe it or not, the tried-and-true newsletter format is still an
effective way of establishing an ongoing communication cadence with your
clients and prospects. Most financial advice firms have transitioned the
newsletter from the traditional hard-copy/printed format to digital. A digital
newsletter is inexpensive and relatively simple to pull together. Even if you
choose to invest in a professional layout template, you get to reuse it
multiple times, which can lead to a solid ROI.
If you are considering adding a newsletter (or if you have one and are
wondering if you set it up the right way), here are 5 best practices that can
make it or break a financial advisor newsletter.
- Choose a frequency and stick to it. You may not think of
it this way, but a newsletter can become an important component of
building trust with the prospects who don’t yet know you. If you promise
them a monthly newsletter, be sure to deliver a monthly newsletter.
Generally, it’s better to pick a lower frequency that’s sustainable for
you — than to promise a weekly communication and fail to keep it up.
- Create a central theme and a structure for
your newsletter. Nothing
wrecks your readership-bounce-rate like a mailer that’s disorganized or
hard to follow. You might brainstorm some re-usable topic categories that
would strike a chord with your audience (perhaps highlighting an upcoming
decision or action deadline, sharing a budgeting tip, a market performance
update, a summary and take-aways from a recent book you’ve read, or a “get
to know” section to present profiles/updates from team members).
- Make a clear path for someone to opt-out. The number one sin when
executing a digital newsletter campaign is trapping your audience in a
slow and painful “death by email” spiral. Nothing deteriorates your brand
faster than spamming disengaged customers. Give your readers a clear
off-ramp. Your newsletter will be better for it. At the very worst, you
will know that your messaging needs to be refined based on an alarming
rate of unsubscribes.
- Give your images alt tags. Email clients (such as
Outlook, Apple Mail, or Gmail) can be a tricky beast, and you never know
what settings your recipient has enabled. If you are trying to spotlight a
project, or if you have invested time in creating a beautiful layout, you
surely want your recipients to see it! Giving an image an alt tag will
allow alternative text to appear if the image doesn’t load. Also, be sure
to test the formatting of your newsletter to ensure it will display right
across different platforms.
- Reduce load times. Be sure to optimize
high-quality images for digital viewing. Compress your images to maintain
quality while reducing long email load times. Your clients and prospects
are experiencing heavy information overload. You have just 1-2 seconds to
grab a prospect’s attention. Don’t allow long load times on your emails to
sabotage your chance!
- Promote your newsletter through your social
media. Each
time your send a newsletter, share one point on your social media profiles
— and encourage your followers to subscribe to the list. This step takes
virtually no time or effort — and can seamlessly deliver more eager
subscribers.
2) Drip sequences can work,
too.
After a prospect has signed up for a lead magnet (such as a report, a
white paper, or a checklist), some advisors follow up the initial delivery with
a short series of emails (something known as a drip sequence). The purpose of a
drip email sequence is to build trust, deliver value, and give the prospect an
opportunity to take the next step in the relationship if he or she is ready.
Here are some best practices for financial advisor email drip sequences.
- Segment your prospects. Relevance is the key factor
that can make the difference between an email that’s perceived as valuable
— and one that’s promptly sent to trash. If you reach out to different
categories of clients or prospects, make sure that you have different drip
sequences to suit their needs. In other words, pre-retirees and business
owners should get different emails. This ties into developing your value
proposition as a financial advisor; see this article for more
tactical advice on that.
- Make sure that every email in the sequence
adds value. The litmus test I like to use is whether my
target audience is likely to save the email, print it out for reference,
or forward it to someone they know. If the answer is “probably not”, then
you need a different email — or you risk burning out your new subscriber
quickly.
- Use storytelling techniques to get the
reader’s attention. Remember, they don’t know much about you yet.
Stories are a powerful tool for connection and trust-building. A
well-chosen and well-told story can immerse your prospect into what it’s
like to work with you. Think of personal stories that will give your reader
a glimpse into your personality, expertise, and experience. There are many
great books about effective story structure, and this topic alone could
make for a whole other blog post. For now, keep in mind that a story is
most effective when you can clearly define a challenge or the stakes, walk
the reader through several different emotions, and provide closure.
- Subject lines matter, a lot. You may spend a couple
of hours refining your email to be just right, but if you don’t have an
intriguing subject line, chances are that your open rates will be
disappointingly low. According to a digital
marketing consulting company Convince & Convert, 35% of
email recipients open an email based on the subject line alone. So, invest
some time to come up with a subject line that piques the reader’s interest
and gives them the reason to click “open”.
- Watch your open rates and unsubscribes. One or two people
dropping off the list is not a big indicator, but if the pattern indicates
that a significant percentage of subscribers opts out of your list on
email # 3, perhaps you should reassess that specific email.
3) Use email to pre-announce events
Are you planning to attend or host a local event? Email is an excellent
tool to inform prospects and clients about it. If you are going to a local
event and it’s open to the public, let your readers know and invite them to
join you. A targeted email blast can allow you to begin networking at an event
before it ever starts.
Before promoting your own event, keep these best practices in mind.
- Give your readers a reason to care about the
event. Just
because you have decided to host an educational seminar, a wine night, or
an art auction isn’t enough to entice a prospect to show up. You need to
let them know why they can’t afford to miss it. Highlight future
take-aways. If your key selling point is raising money for a charity or
having fun, focus on that. Don’t make your audience wonder why they should
go.
- Tailor the event to your audience. This is another
opportunity to segment your list and really think about what each
client/prospect set would value most. A generic workshop may not be
exciting enough to entice participation. It may be better to host two smaller,
highly targeted events that will be well-attended.
- Make your email actionable. It’s not enough that the
client or prospect learns about the event. Give them a specific next step.
Perhaps they can register for the event or email the office for details.
An email without an action will likely be forgotten quickly.
- Deploy responsive design. Fast forward to the day of
the event, and there’s a good chance that your client will be using their
smartphone to refer back to the email you sent them with all the
logistics. Plan ahead and make sure that your email is optimized for
mobile viewing!
Financial advisor email marketing: Round-up
of mistakes to avoid
To close this take on the subject of financial advisor email marketing,
here are some common mistakes I have seen — and ways to avoid them.
1.
Unclear or misleading subject lines. It’s uncommon for
financial advisors to use an outright misleading subject line, although it does
happen sometimes. The more common mistake I see is choosing a subject line
that’s boring, not sufficiently descriptive, or repetitive. Think of your
subject line as a movie trailer: Make the recipient want to open it!
2.
Missing the mark on content. Not every member
of your audience is interested in the same content. So, segment your list and
make different content streams that are relevant to your readership. Your CRM
system should allow you to use tags to facilitate this. And remember, whatever content
strategy you start with is just a hypothesis! Be ready to monitor the response
from your audience (open rates, link clicks, other interaction with content) —
and adapt accordingly.
3.
One-way communication. Have you ever
received an email from a “do not reply” email address? This type of tactic
comes off as impersonal. It does nothing to encourage interaction. When a
company sends out mailers from a “do not reply” address, it tells the audience
that it doesn’t care to have a real conversation. Let your readers know that
you are receptive to feedback — and you will be amazed at how active your
subscribers will become.
4.
Too many links, no clear
call-to-action. Links to important content can be helpful and convenient for readers.
But, as a thoughtful content curator, it is important to tread carefully here!
Too many links can distract the reader from more important content. Don’t try
to overstuff your emails with information. Instead, choose a point of focus —
and optimize your emails to drive viewers to a clear call-to-action.
Original Post: https://modelfa.com/2019/09/05/email-marketing-for-financial-advisors/
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