The success story of Direct mail in today’s digital world is something of a feat on its own. In the face of email fatigue and digital noise, younger generations are embracing the physical nature of mail. While the popularity of postal mail has fluctuated since the introduction of email, direct mail remains an important and effective component of the marketing mix.
In fact, for financial services companies, the direct mail format has proven to be quite effective. This makes sense and is driven by facts. According to the DMA’s most current response rate report, direct mail has a 4.4% response rate compared to 0.12% for email.
Direct mail is used by financial service companies to effectively communicate their offerings and acquire people’s trust. Finance is an issue that requires customers to trust your company. In this blog, we will take a closer look at why direct mail delivers for financial services marketing.
The Power of Direct Mail Marketing for Financial Service Company
The last decade began with businesses from various industries, including the financial services sector, adopting digital platforms for advertising. Although it received a positive response, it has since become a more regular kind of advertising – one that people have seen, heard, and grown tired of.
There are quite a few missing elements in digital advertisements, such as a lack of personalization, an inability to acquire trust, untailored content, and no targeted audience. It is a form of anonymous marketing in which firms advertise and hope that the relevant audience sees and acts on their adverts.
Banks, mortgage businesses, brokerage firms, and other organizations with physical offices that want consumers to visit are all part of the financial services industry. A post on their brand page or group may not be enough to persuade folks. Though there are various digital banks, they, too, use direct mail to instill trust in people’s thoughts by providing a personal touch.
Direct mail is also statistically superior to online marketing. Direct mail is a creative marketing tool that allows finance-related businesses to stand out from the crowd. When individuals are impressed, it is easier to persuade them to give you their hard-earned money.
- Direct mail has an open rate of roughly 90%, whereas emails have an open rate of only 20-30%.
- In comparison, 75% of direct mail receivers can readily recall brands, compared to 44% of digital advertisement viewers.
- Ad blockers are used by 46% of people aged 15 to 25 in the United States.
- Direct mail influences the purchasing decisions of 92% of millennials.
With such compelling stats, it is clear that direct mail for banks and various other financial institutions has the upper hand in the world of marketing, while digital methods are gradually losing their luster.
Why Direct Mail Delivers for Banks and Financial Services Marketing?
Direct mail marketing for financial services combines the personalization and tracking capabilities of digital marketing with the tangibility and credibility of offline channels to assist financial services organizations in providing an exceptional client experience.
But is that reason enough to recommend direct mail marketing for financial services marketing? There are several reasons why financial services direct mail marketing is leaps and bound ahead when compared to other online and offline methods. Some of the primary reasons are as follows:
Unrestrictive Advertising Opportunity
Banks, credit card firms, insurance, and other financial services companies must usually have to make sophisticated proposals to their customers. These proposals are mostly multi-layered and expressed in technical financial terminology. An average person may or may not be familiar with these terms, making it difficult for businesses to communicate about their services in a straightforward manner.
Direct mail financier services work well because it is adaptable enough to meet the complex marketing requirements of financial institutions. There are no limitations on how you present your direct mail. It is not a 30-second commercial in which you must tell everything under numerous constraints. As a result, direct mail offers an unconstrained and adaptable method of marketing.
Trust and Tangibility
Many financial firms struggle to gain public confidence and trust. These organizations, large and small, aim to improve their reputation and public awareness. Direct mail is physical, and it gives individuals the authority to see, test, and decide for themselves. They frequently include special offers that entice consumers to attend a demo or visit a branch.
People can then determine if they enjoyed it or not. Direct mail campaigns can be well-crafted to gain people’s trust and instill confidence in the company. Furthermore, conversions are more likely after taking the desired action than when they are unaware of the offered services.
Millennials are the Future
Financial services are becoming important to the millennial generation (those born between 1980 and 1999). Perhaps they are graduating from university, moving up in their careers, getting married, or purchasing a home.
While you may believe that the ‘digital first’ generation will not respond to letters, this is not the case. Millennials that are digitally literate are more likely to read and interact with direct mail proposals. According to USPS, 63% of millennials who responded to direct mail in the last three months also completed a purchase.
Direct mail is successful because of this demographic’s connectedness; it provides a welcome break from the digital environment.
Variable Data Printing Options
Every direct mail piece may be readily customized with variable data printing. Personalization is essential for a successful direct mail marketing strategy. You may tailor your designs, offers, messages, and CTAs to your target demography with the help of direct marketing experts that cater to your specific needs.
Financial organizations market their services by identifying the primary reason why a client requires their services and promoting them accordingly. This way, both financial service providers and clients benefit since they both get what they desire.
Competition is fierce in the financial services market. Every company is seeking new ways to attract clients. Direct mail marketing, on the other hand, is still used less frequently than digital marketing methods, making them unique. You may outperform your competitors by venturing outside of the digital realm and connecting with your target audience more humanly.
In general, individuals are ecstatic to get anything in the mail. It serves as a respite from online platforms and provides refreshments. Direct mailing is a time-honored method. People still enjoy and anticipate it, which is reason enough for financial services firms to employ this effective strategy.
Direct mail can assist banks and financial companies in acquiring lifetime consumers. Although advertising on digital media will generate some leads, the long-term value is poor. Furthermore, direct mailing has greater conversion rates. Customers who will stick with them for life and add value to their business are needed in the financial services industry. Only direct mail can ensure these kinds of valuable responses.
Online adverts attract untrustworthy leads who may never be converted. However, with the level of personalization and connection that direct mail marketing provides, acquiring long-term consumers becomes easier and more practical.
Direct mail allows financial institutions to be innovative and creative. They can also choose the design of the direct mail, the size of the campaign, and other factors. Direct mail marketing is an offline marketing method that allows you to control and track everything.
For the financial services industry, direct mail continues to deliver effective, measurable outcomes. Furthermore, merging postal and digital allows leading financial institutions’ marketers to create a consistent and meaningful customer experience while achieving their intended ROI.