In our blog ‘Harness the power of Direct Mail automation’, we explained how direct mail automation can transform customer communications by providing a physical connection between businesses and their customers. Something that cannot be achieved via an app, email, text, or social media marketing. This is especially true in the financial services sector, where trust is the main driver of successful customer communications. For a customer, receiving personally addressed mail conveys confidence, professionalism, authority and above all, trust. The customer experience via an app or text message doesn’t carry this level of trust. In this blog we are going to highlight the benefits of direct mail automation for financial services and why it should be included as part of a multi-channel marketing strategy.
The benefits of Direct Mail Automation for financial services
FCA PS22/9: A new Consumer Duty
This July, The Financial Conduct Authority set out the final rules for higher and clearer standards of consumer protection across financial services, which require companies to put their customers’ needs first. The new rules will come into force for existing products that are open to sale or renewal on 31st July 2023 and for closed products or services one year later.
The new regulations are all about how companies design, sell, service, and price their products and services, the characteristics and objectives of their customers and how they behave at every stage of the customer journey. Financial services companies are, therefore, encouraged to
Send tailored, segmented packs to ensure every detail means something to the recipient
Not to over-complicate communications or misguide people
Act in good faith
Communicate in a timely manner, so customers can make effective, timely, and properly informed decisions
An Example
The Gecko team worked with Saffron Building Society on a project to notify savers when fixed-term savings products were approaching maturity. This normally involved two separate mailings and would result in many inbound calls from confused and complaining customers. Unfortunately, the consequences cost many administrative hours, and Saffron lost customers as a result. Our team recognised that delivering the right details at the right time, relevant to individual customers, would prevent them becoming overwhelmed by too much, and often out-of-date, information.
The Gecko team created a platform using real-time data so personally tailored information packs could be delivered to customers. This included up to six recommendations, cross-sell offers, branch-specific reply devices and partially completed application forms. All the information is data compliant in accordance with ISO 27001 data security standards. As a result, Saffron has saved 235 working hours per month and customers now receive the right information to help them make informed decisions for their circumstances, with the vast majority now remaining brand loyal. Read the full Saffron Building Society case study.
The benefits of Direct Mail Automation for financial services
Clarity of detailed information
By their very nature, financial services companies quite often need to convey complex messaging and service provisions. Such complex messaging is not easy to set out in an email, and the reader may get bored very quickly by reading a lot of text on a screen. Direct mail provides multiple options regarding layout and copy along with the longevity a customer may require, should they wish to review at a later date, or even compare benefits with different providers. Many customers prefer the comfort of having tangible mail in a physical form from their financial service providers, even though they may bank online.
Running this type of direct mail campaign in-house can be very difficult and expensive, especially where customer communications need to be 100% secure and 100% accurate, tailored to a specific customer.
An Example
The Gecko team worked with The Claims Guys on just such a project. Our data analysts put together a system to handle a complicated communications process for thousands of their customers managed to ISO 27001. This resulted in sending out 120,000 personalised direct mail packs per week, all with 100% accuracy using the latest available data, sometimes within just a couple of hours of receiving it.
The benefits of Direct Mail Automation for financial services
The customer experience
Customers want to feel that they are important to a brand, and personalised direct mail can address this need and encourage brand loyalty. Recent research undertaken by Royal Mail Outreach asked people whether they trusted postal mail from certain sectors, and an average of 71% said that they did, rising to 78% in the ‘credit card provider’ category. The research also demonstrated that mail signified importance to the reader at twice the level of digital communications.
An integrated approach, using both tangible and digital communications can improve the customer experience and encourage customer loyalty:
Direct mail can point customers to a website or landing page
Personalised mail may direct customers to a webpage to access documents or policy updates
Personalised URLs or QR codes printed on a welcome pack could send a customer to a contact page, where they can download an offer code or lead magnet in exchange for their details
Data from a contact form can be streamlined to automatically send a personalised pack to individual customers, tailored to their preferences
Gecko has a large direct mail and print facility all in house, no need for outsourcing and therefore breaking any security breaches with third party couriers/companies. We are on hand to help financial services companies with their customer communications, including bills, statements, appointment reminders, updates, T&Cs, new policies, welcome/informational packs and beyond. All can be produced in different formats and finishes to help financial service companies to convey that sense of trust, authority and professionalism to both new and existing customers. What’s more, we can even offset the carbon used in your mailing! If you would like to talk to us regarding targeted personalised direct mail, contact us and we will talk you through the benefits of Direct Mail Automation for financial services.