In an article in Entrepreneur Magazine, a new study by McKinsey & Company has found that email continues to be a significantly more effective way to acquire customers than social media. In fact, email marketing
is nearly 40 times more effective than Facebook and Twitter combined.
Are you surprised by this? In financial services, I don’t think it is all that surprising. Social media has been much more of a tool for exposure and a way to convert referrals — not necessarily a source for a stream of new qualified clients. It doesn’t seem that people often use social media to choose a financial advisor to manage their life savings.
However, the study did talk about something that fewer advisors are doing that is critical to marketing today: email.
The McKinsey Study states that email is just one part of a series of interactions. Your email should lead the reader to a customized landing page
that features the offer presented in the email. Here’s a key statistic: The landing page can increase conversion rates by more than 25 percent. Think about this as a way to get people to attend your seminar, watch a webinar
, download a free report, or schedule a retirement analysis.
The study also emphasizes the importance of mobile device marketing. Nearly 45 percent of all marketing emails today are opened on a mobile device. And that is a very big deal because Google says 61 percent of users are unlikely to return to a mobile site they had trouble accessing. Even worse, 40 percent visit a competitor’s site instead. Have you optimized your website for mobile devices?
Now, I do still think social media is effective for financial advisors. It continues to serve a purpose in generating exposure and converting referrals. But if you are looking for new clients, there may be some better ways today that should be considered.
One important email marketing mistake that could be hurting your conversions
Why isn't social media working for you?
ProducersWEB survey results: Are members benefitting from social media? [infographic]