Why Omnichannel Marketing Makes Cents for Financial Services

October 25, 2022 • Posted by DM20

Most of us can say we started receiving credit card offers in the mail as soon as we turned 18 years old. We’ve been pre-approved for a low APR, cash back perks, travel rewards, and more. Financial services have long relied on direct mail for consumer lending and this marketing method is still effective today; however, modern mail is now enhanced with multiple digital mediums in the form of omnichannel marketing.

The concept of omnichannel was first introduced to the marketing world in 2010, but it has yet to be fully adopted by the business world.

“One study concluded that nearly three out of four of all businesses surveyed had yet to successfully invest in omnichannel engagement strategies,” writes Jason Laky, Executive Vice President of Financial Services at TransUnion, in an article for Forbes Magazine. “An older study reveals this is not a new problem, as executives have struggled with integrating data, managing across channels and tracking verified identities at all touchpoints.”

Fortunately, there are technology companies that have emerged in the last few years who can provide the integration, management, and tracking of these omnichannel campaigns, such as DirectMail2.0. It all starts with the mail piece; but even before that is placed in the mailbox, other channels are deployed to prime the target audience. This strategy of touching the consumer before, during, and after the direct mail delivery is proven to be more effective than a single advertising method alone.

“In a 2019 study, marketers using a single channel saw a 5.4% engagement rate, while those who used three or more were as high as 18.96%, and purchase frequency shot up 250%; the average order value was 13% more,” explains Laky. “For consumers, the omnichannel approach offers improved experiences across devices and channels, resulting in higher loyalty as well as retention—and the revenue that comes with it.”

The competition in the financial services industry is fierce so these companies need to effectively deploy an omnichannel strategy now more than ever. But this can be difficult and time-consuming, if they don’t have the right partners with the right tools to help. Collaboration is key and MarTech masters like DirectMail2.0 make it seamless for all types of industries.

Like Laky says, “With the right collaboration, omnichannel marketing can do more than make managing multiple channels easier and more reliable: It can easily and effectively open up reliable marketing access to all channels. That’s the promise of omnichannel marketing.”

Learn more about omnichannel marketing by contacting sales@dm20.com today!

Source: https://www.forbes.com/sites/forbesfinancecouncil/2022/10/24/omnichannel-marketing-is-critical-in-a-digital-world-heres-how-its-about-to-get-better