Maximizing Returns with Digital Marketing in Financial Services

Did you know traditional financial services marketing involves a significant investment in grabbing the attention of potential customers, constituting roughly 14% of the total spending on digital advertising in this industry?

However, the commitment could be much better when converting these prospects into actual customers. For every $92 spent on acquiring leads, only $1 is devoted to the critical process of turning them into paying customers. This stark statistic highlights a notable issue within financial services marketing strategies.

At first glance, the wide gap between lead acquisition and conversion investment might appear as a simple resource allocation error. But, the reality is more intricate. Financial service providers grapple with a complex marketing landscape, often burdened by regulatory and compliance hurdles and relying on traditional marketing approaches.

Companies engaged in financial services marketing must rethink their approach to boost marketing effectiveness and bridge the gap between expenditures and returns. By implementing financial marketing, they need to discover strategies to transform potential customers into loyal advocates.

If you run a finance company or have an investing firm, keep reading everything you need to know about maximizing returns with digital marketing in financial services.

Financial Services Marketing-An Overview

Financial service marketing revolves around how companies within the financial industry promote and sell their products and services to potential customers. Typically, it stands apart from other forms of marketing due to the distinct nature of financial offerings, which inherently possess higher levels of trust and credibility.

Moreover, the strategies employed in financial marketing must adhere to stringent regulatory frameworks. There are primarily two approaches to promoting financial services:

• Digital Marketing encompasses inbound channels such as blogs and outbound media like pay-per-click (PPC).
• Traditional Marketing: This includes conventional mediums like TV, radio, print, and signage.

Most financial service providers typically employ a combination of digital and traditional marketing methods. However, the historical reliance on traditional practices, such as the heavy use of print advertisements in newspapers, has increased the emphasis on traditional marketing channels.

It is worth mentioning that this landscape is evolving rapidly as digital marketing campaigns in the financial sector have demonstrated their effectiveness in reaching and engaging customers. That is to say; you may find many consumers seeking financial services turn to online channels like web searches to survive in today’s digital landscape.

For instance, 93% of accounting customers contact a business after conducting an online search. If you are present in these searches, you can avoid missing out on potential customers.

Why Does the Financial Service Industry Need Financial Services Marketing?

The financial industry’s traditional “wait and see” approach is no longer adequate due to changing dynamics, such as heightened competition and evolving customer expectations. Financial service providers are now compelled to engage their target audience to generate interest actively. That means, as a financial institution, you can no longer rely on a passive approach, waiting for customers to come to you.

Several factors have contributed to this shift from a passive stance to a more proactive marketing approach:

Commoditization

Standardizing financial products has made standing out in a crowded marketplace increasingly challenging.

Disruptive FinTechs

Aggressive FinTech (Financial Technologies) companies are challenging established norms and reshaping the industry’s landscape.

Eroded Trust

The financial sector has faced a decline in customer trust, a crucial asset that must be diligently rebuilt over time.

Fortunately, investing in digital marketing is one way to set your financial service apart from others in the saturated market.

Digital Marketing Tips to Maximize Returns

Below are our top digital marketing strategies to effectively engage younger generations, enhance financial literacy, and generate leads for sustaining long-term customer acquisition for your financial service.

Empower Through Education

The key is education when marketing financial services to customers needing more clarification on their value or functionality. Informing them about your products and their benefits is vital. While content marketing is a common practice, it holds particular importance in the financial sector.

The idea is that consistently providing customers with information can transform them into valuable leads. Content marketing doesn’t have to be limited to blogs; it’s a versatile tool. It builds trust by helping users track their finances and offers investment opportunities only after empowering them through education.

Leverage Diverse Media Channels

Financial service providers need to be present where their customers are, and today, that means across various platforms, from YouTube and social media to Google search. Multichannel customers tend to spend 30% more per purchase. While blogs can yield a high return on investment, not all customers are inclined to read lengthy posts.

Video content is highly effective in this regard. In fact, 94% of marketers have found that videos enhance user understanding of their products or services, and 43% have reported reducing product-related inquiries after incorporating video content.

Video marketing now encompasses various formats, such as explainers, Vlogs, tutorials, interviews, product showcases, social media content, and presentations. You can also opt for online reviews and explainers, as they have a compelling impact on persuading your new leads and existing customers to consider purchasing products and services.

Cultivate a Strong Social Media Presence

Social media marketing is not merely about establishing social media accounts and promoting product offerings. Generating high-quality leads necessitates delivering meaningful content with substance.

Furthermore, you need to build trust in today’s client base. It requires a commitment to social awareness and responsibility, showcasing a genuine concern for societal issues.

Create Synergy between Your SEO and PPC Efforts

SEO and PPC are two interrelated digital marketing strategies you can employ to yield more leads. Search engine optimization, for instance, involves tactics aimed at enhancing the visibility of your website or webpage within organic search engine results—those that appear when a user enters a query into an online search engine without clicking on paid ads.

PPC, or pay-per-click, on the other hand, is a feature within search engines where advertisers pay a fee for each click their ad receives. Moreover, the effectiveness of their landing pages determines their success. Pay-per-click advertisements encompass various types, including display ads, search ads, social media ads, remarketing, sequential remarketing, and Google Shopping ads.

Integrating SEO and PPC advertising strategies enhances exposure and increases your search visibility. This combined approach is instrumental in establishing your robust online presence within the financial services market.

Summing Up

Using digital marketing in the financial services sector is crucial for success. We’ve discussed various strategies to engage customers, improve financial knowledge, and attract leads for long-term growth. These strategies are designed to engage younger generations, enhance financial literacy, and ultimately foster long-term customer acquisition for your financial services.