Digital marketing in finance
What should a financial business consider when running a digital campaign?
For a successful online campaign, a financial business will need to consider two critical factors:
1. Conversion rates; and
2. Regulatory restriction on offers.
Conversion rates are the key metric in digital marketing. Just as financial businesses do not wish to spend on relationship managers who are not effective in capturing AUM, they should not spend on digital marketing that does not convert into AUM.
The first most powerful engine for conversion is search engine marketing or “SEM”. Customers go to search engines to look for something they want. Therefore, if you give a customer what they want, they are very likely to convert. For example, if a customer searches for “wealth management services” on Google and your result pops up top, not only does it give the image that you are the best in the industry but, at the same time, you are feeding the customer exactly what he wants: wealth management services. There is no reason for the customer not to become your customer unless the reputation, services or product are so palpably bad, that, after viewing your website, the customer decides to resume his search.
The second most powerful engine for conversion is social media. Third generation (23-32) HNWIs spend over 2 hours daily on social media. With social distancing this has increased. Think about how selling a well-positioned investment product or wealth management service on Facebook or Instagram can access viewers.