Raise your hand if you’ve ever tried doing something the hard way, only to find out there was a technology that made things exponentially easier. I know I certainly have, and I am sure some of you have. This confusion can sometimes happen when it comes to fintech.
The term fintech can encompass any technology used in the financial industry. This term can refer to the technology used by private investors, clients, industry professionals, and financial advisors. Understanding the basics of fintech for financial advisors could set your practice apart by bringing you to where your clients want you to be.
No matter how experienced and skilled you may be in financial advising and wealth management, you may find yourself falling behind in the ever-changing world of financial technology. That is why I have decided to create this series; to help financial advisors learn of the latest fintech and maybe fall head over heels for them.
In today’s 2nd installment of “Falling for Fintech,” I will explore what Email Marketing Software is and how it may be worth swiping right on.
What is Email Marketing Software?
To understand what Email Marketing Software is, you first need to know what email marketing is. Simply put, email marketing uses email as a form of direct and mass digital marketing. To practice email marketing as a financial advisor, you would use emails to communicate marketing information to prospects and clients. Email marketing could be used for any client or candidate, regardless of their stage in the buyer process.
Marketers have a long history of attraction to email marketing. The first email marketing campaign was in 1978. This campaign was sent to around 400 prospects and generated about $13 million in sales[i]. Email marketing has always been an object of attraction.
Furthermore, a study by Statista shows an estimated 9.62 billion daily email users and 306 billion emails sent daily[ii]. Most likely, you are familiar with or have used email marketing in your practice, but did you know there is a fintech to help you in your email marketing endeavors?
This fintech is Email Marketing Software. In our last installment of “Falling for Fintech,” we discussed using Customer Relationship Management software to keep in contact with clients and prospects. Email marketing software is another way to stay in touch, focusing specifically on email marketing communications.
5 Reasons Why You Should Fall for Email Marketing Software.
You may think you’d be better off on your own and don’t see the value of bringing Email Marketing Software into the mix. Email Marketing Software has many benefits beyond just sending emails.
Here are some benefits of Email Marketing Software:
- Email Automation: A significant benefit of Email Marketing Software is email automation. This feature allows you to write an email campaign, approved by your compliance department, and schedule times for each email to be sent. In this way, email automation could potentially save you time.
- Personalization: Many Email Marketing Software allows the possibility of personalization without having to edit each email. The software has a feature that will autofill details about your prospects, like their first name or title. This level of personalization can make large campaigns seem intimate and tailored to each prospect.
- Analytics: Most Email Marketing Software collect data with the sending of emails. The data collected shows the number of emails that get opened, response rates, and link interactions aggregated onto one platform.
- Affordability: Email Marketing Software is significantly more cost-effective than other marketing channels such as print or digital advertisements.
Email Marketing Red Flags.
There are countless benefits to Email Marketing Software, but it is not without faults. A drawback of email marketing, in general, is the risk of spamming your prospects and clients. Over-sending emails that do not add value could be labeled spam and negatively affect your brand reputation. A way to combat this is to ensure you are constantly adding value to your email communications. Becoming familiar with the CAN-SPAM Act, which outlines specific email marketing guidelines, is also essential.
Benefits of Email Marketing Software for Financial Advisors.
Even after reading this far, you may not feel the chemistry between your practice and Email Marketing Software. That’s okay! When deciding which fintech is right for you, it is crucial to consider it carefully. It is also worth noting that no fintech should be considered without running it by your firm’s compliance department. But if you are wondering how this pertains to your firm, here are some benefits of Email Marketing Software, specifically for financial advisors:
- High Open Rates: In a study by an Email Marketing Software called Constant Contact, 22.28% of emails sent as marketing communications in the financial services industry get opened[iii]. That number also includes completely cold emails!
- Compliance: Many Email Marketing Software out there allow for compliant archiving. There is also software that allows for encrypted emails if necessary.
- Education for Clients: Some financial services and concepts are not easily explained in a 30-second advertisement. A written email campaign that educates clients and prospects on financial concepts may create a more robust client relationship.
- Make Important Announcements: As a financial advisor, you sometimes have to communicate announcements quickly to your clients. An Email Marketing Software that lists all your clients is an efficient way to share such announcements.
Today we have talked about the charming points and red flags of Email Marketing Software for financial advisors. There are many broad benefits and benefits specific to financial advisors in this fintech. Remember, finding the fintech for you may be lengthy, but I encourage you to take your time and find the fintech worth falling for.
Is there a fintech for financial advisors that have caught your eye recently? Submit your topic ideas, and you may see them in installments in the weeks following.
This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax, or investment advice or an investment recommendation, or as a substitute for legal counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy, or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC.
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