Direct mail is undeniably effective in the digital age. In the face of email fatigue and digital noise, younger generations, in particular, are embracing the physical nature of mail. While the popularity of postal mail has taken a backseat since the introduction of email, direct mail remains an important and effective component of the marketing mix.
Businesses in the financial services industry rely on their reputation to attract customers. The top factors that keep these businesses afloat in the market are trustworthiness, stability, and integrity. Any financial institution that fails to earn these things will almost certainly begin to lose money. As a result, it is crucial that these characteristics or qualities are strongly communicated to the public. This is why financial services direct mail marketing is often the first choice for businesses operating within the sector.
But what exactly is financial service direct marketing? What does it bring to the table that makes it worthy of the hype? What features of direct mail marketing make it effective and reliable for finance marketing? Let us answer these questions in this blog by understanding different aspects of direct mail marketing for financial services.
What is Financial Service Direct Mail Marketing?
Services in finance Direct mail marketing is the practice of sending printed marketing materials to specific clients in order to advertise their products or services.
It enables financial services marketers to appeal to prospective and current customers while also distinguishing their organization. Direct mail items scream “Open me” to recipients, allowing them to get the attention their brand deserves.
Reasons Why Direct Mail Is Such an Effective Marketing Tool for the Financial Service Industry
There are several reasons why direct mail is extremely effective for marketing in the financial services industry when compared to other online and offline channels. Some of the main reasons are as follows:
1. Direct Mail Builds Trust and Authority
Because of the tactile nature of direct mail, brands have long been able to convey trust and authority, which is especially important for financial brands. A high-end piece of direct mail, for example, printed on premium paper with embossing conveys professionalism and integrity. With digital pieces, the recipient does not have the same physical connection.
Receiving mail in their mailboxes also makes recipients feel valued and gives them a better impression of the organization than simply receiving emails. Direct mail conveys a sense of permanence and purpose, which can help combat customer skepticism. Together, these tangible qualities allow direct mail to cut through, establishing trust.
2. Direct Mail Enables Clarity and Longevity
Financial services, by definition, provide complex services and propositions. Direct mail marketing allows brands to simplify their services through the use of white space and finely crafted copy, as well as a creative to ensure clarity.
You can provide an explanation that incorporates digital, directing people online if necessary. Direct mail also provides longevity, which is ideal for products that require in-depth review or as reference pieces. As a result, it is an excellent choice for financial services because it can provide the detailed information required to make an informed decision at the recipient’s discretion.
3. Multichannel Strategy Lifts Engagement and Response
We have seen it time and again: integration and multichannel campaigns produce the best results. Using direct mail and digital together in a planned, strategic campaign complements and adds value to each.
This approach can be used in a variety of ways by financial service providers. You may want to drive traffic to your website at the top of the funnel in order to capture leads and download assets such as whitepapers. As the sales cycle progresses, you can combine it with a personalized landing page to allow users to access product or policy documents.
4. Millennials Love Direct Mail
Financial services are increasingly important to the millennial generation. 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 direct mail, this is not the case. Millennials who are tech savvy are more likely to read and interact with their content. According to USPS, 63% of millennials who responded to direct mail in the last three months also made a purchase. Direct mail is successful because of its popularity among the masses; it provides a welcome break from the digital environment.
5. Variable Data Printing
Every direct mail piece can be easily personalized with variable data printing. PostGrid can assist you in personalizing direct mail to effectively reach your target audience. Personalization is essential for a successful direct mail marketing campaign. You can tailor your designs, offers, texts, and CTAs to your target demographics.
Financial institutions typically identify the primary reason why a person requires their services and advertise accordingly. This way, both financial service providers and people benefit because they both get what they want.
6. Direct Mail Offers Control Over Marketing
Direct mail allows financial institutions to be creative and innovative with their marketing strategies. They can choose the design of the direct mail, the size of the campaign, and other factors which can hugely impact the overall response it gets from receivers. Direct mail marketing is an offline marketing method that allows you to control and track everything.
Even a massive billboard on a busy street may not produce the desired results. It adds more to the location than it does to your brand. Direct mail allows businesses to control what is sent, to whom it is sent, when, how, and everything else. You can use EDDM or mailing lists to target high-income areas.
Direct mail stands out as a powerhouse in financial services marketing. Its tangible nature builds trust and authority, offering a personal touch that resonates with recipients. Moreover, direct mail for the financial industry simplifies the intricate nature of financial offerings, making it easier for the recipients to understand what’s in it for them.
Surprisingly, millennials, known for their digital affinity, embrace direct mail, providing a refreshing break. With variable data printing enabling personalization, financial institutions gain control over their marketing narrative. In essence, direct mail is not just a tool; it is a reliable ally in conveying trust, simplifying complexity, and engaging audiences effectively.