Business

HOW TO UP YOUR EMAIL MARKETING GAME IN THE FINANCIAL INDUSTRY

Published

2 years ago

June 13, 2021

admin

Sam Holding, Head of International, SparkPost

The secret to a successful marketing campaign, no matter the industry, comes down to a well-oiled email programme.

In the financial industry, high volumes of emails are being sent every day, and it is vitally important that customers trust the sender and understand the information that is being shared through the email. And in the financial industry, this is even more true. But ensuring that emails are being received correctly, both in terms of deliverability and content, is much easier said than done. How can organisations ensure that their emails are reaching customers and prospects successfully, and sending the right message?

While financial services firms certainly need to consider the content and branding of their emails, they must also prioritise the foundational elements of email, namely deliverability, in order to make email the ROI machine it can be. That said, deliverability, content, and branding are the combined ingredients necessary for financial services to fully realise the potential of their email programs.

For high volume senders, even a seemingly nominal decrease in deliverability rates can represent a huge decline in how many customers are actually seeing their emails. More than that, with financial institutions, the value of each converted customer can be quite high meaning that even a 1% decrease in inboxing rates can mean major losses. Once financial organisations understand the pounds and pence of deliverability, it’s time to start implementing tactical best practices to avoid the pitfalls of declining deliverability rates.

Step 1. Improve your reputation as a sender

For financial organisations, using email to help boost their credibility and reputation is essential. Actions such as sending on new IP addresses with unproven reputations, can seriously impact an organisations reputation with current and potential customers, therefore it is vital that email activity is set up to improve a company’s reputation and not the other way round. It is important that anything considered personally identifiable about a customer (or PII), like their phone number, account number, or address, are properly protected and only shared with the customer themselves. On the other hand, another way to build customer trust is by letting them know information that you will never ask for over email, so that they can easily identify any suspicious communication that occurs, without finding out the hard way.

Also, when it comes to building a solid sending reputation financial firms shouldn’t send too much, too soon, from a new IP address.

Relevant email sending is key

Once the more technical aspects of email sending are in place, organisations must next ensure that the content they are sending in their emails is truly relevant to the recipients. No matter how engaging and interesting an email is, if it is not relevant to the recipient, it simply will not yield success. The more relevant the emails are, the more likely they will be well received by consumers.

Financial institutions should be mindful when building lists for sends and use data like past purchases, traffic logs, and on-site search to inform who they’d like to send to, avoiding the temptation to blanket their whole audience with a single email in the name of efficiency. In order to get the most out of email communications, sending highly targeted messages will be much more effective in not only building reputation, but building out a strong and engaged list.

Produce high quality content

Once the relevant audiences have been defined through segmentation, the next task is to decide on the content of the emails. When it comes to sending out marketing messages, financial institutions should consider the kind of information their recipients find valuable and produce content that is in line with their needs. One way of ensuring marketing emails resonate with the audience is through promotions. Who doesn’t love a good offer? Customers need to be able to see the value in subscribing to emails, and offering valuable educational seminars and content and special offers tailored to their financial picture via email is a simple way to do that.

Another best practice for financial institutions is to pay close attention to writing great subject lines. Since many customers won’t see more than the first few words — especially on mobile – senders should put the most relevant and targeted terms up-front, making the value to the customer immediately clear. With smart content informed by great segmentation, financial firms can really leverage the power of email in their marketing strategies.

Use strong branding to boost integrity

The last foundational ingredient to a great financial services email strategy is branding.

To ensure brand integrity, it is essential that every aspect of an organisation’s messaging — visual identity, voice, value proposition — is consistent and compelling. A common pitfall is to use different systems or third-party providers for automated transactional emails, marketing emails, and other types of messages. This can lead the look and feel of the messages customers receive to vary widely, creating a confusing brand experience. By managing all messages through a single system, financial firms can build a stronger connection with customers and make each email they receive feel part of a coherent and valuable relationship.

As part of a financial services organisation’s branding strategy, it’s a good idea to use the brand name in the “from” field that shows up in the recipient’s inbox. Some marketers use an individual’s name with the belief that it will seem more personal, but this can also make it seem like spam. Instead, use a name customers will expect to see, then stick with it consistently across all emails to build recognition and trust. Using a solid and consistent brand is a best practice for any brand that sends email!

When it comes to your email marketing strategy, different approaches will work for different organisations, and will depend on the intended outcome. For large volume senders, like financial organisations, this is particularly true, and it is even more important that you know why you are sending your email and who it is intended for in order to get the most success possible. By following best practices, and taking care in your approach, email can be the gateway to a higher reputation and more loyal customer base.

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Business

In-platform solutions are only a short-term enhancement, but bespoke AI is the future

Published

1 day ago

September 27, 2023

editorial

By Damien Bennett, Global Director, Principal Consultant, Incubeta

If you haven’t heard anyone talking about artificial intelligence (AI) yet, then where have you been? Conversations about AI and its advantages to society have been a key talking point over recent months, with advances being made in the generative AI race and ChatGPT opening a whole plethora of possibilities. Many have highlighted the advantages of AI, but notably it’s ability to create human-like content.

But these discussions have only scratched the surface of what AI is capable of doing. It is for far more than just essay writing, adding Eminem to your rave and photoshopping dogs into pictures.

In marketing, we have been using AI for years, for everything from analyzing customer behaviors to predicting market changes. It’s enabled us to segment customers, forecast sales and provide personalized recommendations, having a huge impact on how our industry works.

It is even, for the more savvy marketers of the world, becoming a key tool in maximizing budget efficiency – which is apt, considering over 70% of CMOs believe they lack sufficient budget to fully execute their 2023 strategy.

Now, as AI becomes more intelligent, the number of efficiencies it can unlock continues to rise. Not only can it help brands get the most out of their available resources and identify any areas of waste, but it can also help highlight new opportunities for growth and maximize the impact of your budget allocation.

The trick, however, is to veer away from the norm of using in-platform solutions with a one-size-fits-all approach and create your own, bespoke solutions that are tailored to your business needs.

Pitfalls of in-platform solutions

In-platform solutions aren’t by any means a bad thing. In fact, built-in AI tools have become increasingly popular, owing to their ease of integration, user-friendly interfaces and minimal set up requirements. They come pre-packaged with the platform, offering the user the ability to leverage AI technologies without the need for in-depth technical expertise or the upfront cost of building a solution from scratch.

However, the streamlined and accessible nature of in-platform AI solutions comes at the expense of complexity and customization. They are designed to serve a broad user base, but for the most part are built using narrow AI solutions with predefined features and workflows.

This makes them great for assisting with common AI tasks, but they lack the flexibility to tailor functionality towards unique business requirements or innovative use cases, limiting the potential efficiencies and cost savings that can be unlocked. Additionally, if a business’ competitors are using the same platform, they are probably using the same AI solution, meaning any strategic advantage gained from these will be reduced.

Bespoke AI solutions, on the other hand, may carry a higher initial investment – but can offer a significantly more attractive ROI over a short amount of time.

Why customized and adapted AI is the key

The difference between bespoke AI and in-platform solutions is similar to that between home cooked food and a microwave meal. Yes, it is more time consuming to prepare, and yes it likely carries more of an upfront cost, but the end result is going to be far more appealing and will carry more long-term value (financially… not nutritionally).

That’s because bespoke solutions, by nature, will have been tailored to address your brands specific needs and challenges. These custom-built tools allow for much greater efficiencies by streamlining workflows across different channels, automating more complex tasks, and providing deeper, more relevant insights.

The increased level of optimization can significantly improve productivity and reduce operational costs over time, offering a higher ROI. The increased flexibility of bespoke AI also allows brands to implement innovative use cases that can significantly differentiate them from their competitors.

The data analyzed can be specifically chosen to match business requirements, as can the outputs of the AI tool, providing a significant advantage when understanding and acting on the insights provided.

Additionally, these tools are, by nature, more scalable. They can be updated, upgraded and expanded as needs change, ensuring they continue delivering value as the business grows. They can also be designed to integrate with any existing IT infrastructure, from CRM systems and databases to marketing platforms and sales tools – leading to more efficient and effective decision-making.

Managing finances with AI

It’s no secret that AI in marketing automation has, and will continue to, revolutionize the way marketing is done. It has a bright, if slightly terrifying, future and can help CMOs to unlock new efficiencies, maximize the impact of their budgets and increase their ROI. And as this technology becomes more advanced, its impact will only increase.

But we already know that…and so does everyone else.

So, in order for businesses to make themselves stand out from the crowd , they must look to fully adopt the power of AI. Creating a customized and unique AI solution could be the way to set yourself apart from your competitors. A bespoke AI tool can provide brands and businesses with features unique to them and their business needs. As a result, companies will benefit from more useful data and better results to make more data-driven decisions for their business. Ultimately, this will help brands to maintain a competitive edge over their competitors, deliver ROI and most importantly optimize their budgets.

Business

Exploring the Transformative Potential and Ethical Challenges of AI in Wealth Management

Published

2 days ago

September 26, 2023

admin

Nuno Godinho, Group CEO of Industrial Thought Group

In recent years, the advent of AI has sparked both excitement and scrutiny within the Wealth Management industry. The technology’s capabilities, including but certainly not limited to generative AI algorithms like ChatGPT, offer a new dimension to data analysis, market prediction, and portfolio management. However, while it presents a promising avenue for enhancing decision-making and elevating client interaction, AI also carries inherent challenges that demand careful consideration.

Benefits of AI in Wealth Management:

In a world where CX is key, AI enables wealth managers to provide personalised advice, improved portfolio performance, real-time insights, and convenient access to information and support. Previously it has been impossible for advisors to deliver hyper-personalisation at scale; now, AI-driven customisation lets them tailor investment strategies and recommendations to their clients’ unique financial goals, risk tolerance, and investment horizon.

AI algorithms can also analyse vast amounts of data to identify trends and opportunities, resulting in potentially higher returns on investments. And, more widespread use of automation will gradually reduce the cost of wealth management services, meaning higher-quality investment advice at a lower price. This is critical as firms fight to stay relevant for modern investors disillusioned by traditional advisory firms and private banks.

Relationship-wise, there are many other advantages. AI-driven data analytics make it easier to gain a deeper understanding of an investor’s needs, preferences, and behaviours, all of which help to build long-term relationships. Through predictive analytics, firms can differentiate their service and proactively identify new investment opportunities, such as emerging market trends or underperforming assets. At the same time, chatbots and virtual assistants facilitate constant communication to answer queries and increase engagement. By strategically integrating AI technology into their operations, firms have the power to optimise top and bottom lines, strengthen client connections and position themselves for long-term growth.

Navigating the Ethical and Practical Challenges:

While AI holds remarkable potential, major obstacles must be overcome. With AI’s reliance on large amounts of data, ensuring client data confidentiality, managing consent, and complying with global data protection regulations like GDPR are significant challenges. Another issue is algorithmic bias – as AI learns from data, it may inadvertently perpetuate inequalities or biases present in the training datasets used. Vigilance is necessary to ensure that AI systems don’t amplify these issues. A key concern is the absence of standard governance, leading to a lack of accountability and transparency. Black-box algorithms can make decisions without providing clear explanations for their reasoning, making it difficult for clients and regulators to understand and trust AI-driven outcomes. Overall, the responsibility for AI-generated recommendations remains complex, requiring collaborative efforts to establish robust regulatory frameworks.

Striving for Data Integrity and Reliability:

The efficacy of AI-driven solutions hinges on the quality of training dataset they are supplied with and rely upon. Therefore, ensuring accurate, unbiased, and comprehensive datasets is paramount to generating trustworthy insights. The absence of standardised data sharing can lead to skewed results, ultimately impacting the quality of AI-generated advice. Transparency in data usage, validation, and generation reasoning will be pivotal to cultivating client trust and minimising systemic risks, which ties back to the absence of standard governance, as the output from AI-generated advice will only be as good as the data sets provided. We need to understand the “lineage” of all data used and generated by the algorithms. Until the industry can come to some accord on how we plan to use all of our respective data, it will be prone to various biases and fragmented advice, which will lead to liability and reliability issues down the line. It’s worthwhile wondering whether we can see the industry opening up in an age of data equals value.

The Role of Collaborative Partnerships:

Amidst these challenges, collaborative partnerships emerge as a potent avenue. Established wealth management firms can harness the expertise of FinTech AI companies to augment their capabilities while mitigating the risks associated with AI adoption. A symbiotic relationship, where innovative AI solutions are developed by trusted partners, helps safeguard against potential pitfalls and aligns with the pursuit of ethical, data-driven decision-making.

Looking Ahead: Striking a Balance for Sustainable Progress:

As we journey into the AI-powered future of wealth management, it’s evident that a balanced approach is essential. The integration of AI has the potential to expedite the transition to wealth management 4.0, revolutionising personalised client experiences and advisory services. However, this progress must be underpinned by clear ethical guidelines, data integrity, and collaborative partnerships. Striking this equilibrium promises not only a more informed, efficient, and personalised industry but also one that upholds the principles of transparency, accountability, and client trust.

In conclusion, AI’s impact on the wealth and asset management landscape is profound, offering unparalleled insights and opportunities. While navigating challenges will be crucial, a collective effort to harness AI’s power while ensuring its responsible application will pave the way for a resilient, future-forward industry.