The Email Wars

If you are in the financial services industry it looks like you are now embracing the internet and the use of email marketing and email outreach at a fast pace (see article below). At eROI we have seen more and more inquiries and new accounts from this industry sector. But along with growth and use come understanding and reputation.

It is not that they are in a bad place, BUT there has been so much negative email floating out there around these industries that they need to be both cognizant of the junk as well as aware of what approach they are going to take to use email as a channel of outreach.

What this means is they need to research who might be spoofing their brand, what is floating out there about them, and decide HOW they are going to talk and interact in the email channel. It is something that cannot be entered into lightly. Reputation, setting clear communication policies and plans, as well as TELLING the customer what they are going to send is going to lead to success if the below projected use growth of 17.8% annually is going to be in their favor.

With over 40 plus financial institutions using emailROI to communicate with their customers we are always trying to educate them on these thoughts and strategies. After all, who wants to get another email letting you know your account needs to be verified or that there has been suspicious activity in your account by email?

Email and Internet Top Direct Media Choices For Financial Services
According to a recent Direct Marketing Association report, American financial services institutions are increasing their use of direct marketing. The $13.4 billion that U.S. banks and credit institutions spent last year on direct marketing advertising generated $178.8 billion in sales. These sales are forecast to hit $286.2 billion In 2012, according to the report.

The report also found that:
Banks and credit card institutions had the best return on investment in this sector in 2007 at $13.37 per dollar spent

Financial services direct marketers mainly use non-catalog direct mail (41.8%) as their primary direct marketing channel

Financial services companies’ advertising expenditures for commercial e-mail is expected to have the largest growth among all media types between 2007 and 2012 with a compound annual growth of 22.5%
Internet advertising spending in this sector is projected to grow at the second highest rate, at 17.8 % each year from 2007 to 2012

Telemarketing advertising expenditures for the overall financial services sector are expected to reach $7.4 billion in 2008 and $8.4 billion in 2012

Broadcast advertising sales are expected to climb 4.8% each year from 2007 to 2012

Insert media sales in the financial services arena will exceed $1.1 billion in 2008, with banks and credit institutions comprising half of sales

Financial services companies are projecting to spend less on print advertising than they currently do.

Banks and credit institutions’ ad spending is expected to decrease 0.5% by 2012.