12 Benefits of Cold Emails to Financial Services

Through many years, the most dependable source of financial services leads and new clients has been referrals. Referrals are a huge source of new business opportunities for financial advisors and one of the better generators of new leads. That’s why one of financial services marketing strategies should be referral and testimonial generation, but that’s not the ONLY strategy.

Introducing Cold Emails

Cold emails played a major role in the success of many businesses in terms of sales, financial services is no different. Cold emails can be considered as a double edged sword that can either ruin your business and can get your domain blocked by email service providers and email servers or gain more clients and sales.

If properly executed, cold email is probably one of the most effective marketing strategies in this modern era. Oftentimes, most financial advisors rely solely on their website to the point where they turn it to a 24/7 sales representative, invest in Local SEO, get noticed by search engines and continuously generate reviews. 
These obviously are some of the well-known marketing strategies today that still work. But when cold emails started to emerge and become one of the most powerful tool in marketing, many businesses and companies adapted this strategy to generate more leads and sell products and services. Financial advisors should also start building their financial services cold email to level-up their marketing game.

Here are some benefits of cold emails to financial services:

Benefits of Cold Emails to Financial Services

  1. Cold emailing is cost-efficient. You don’t have to hire dozens of SDRs to do email outreach – you can do it yourself. All you need is a reliable software platform.
  2. It offers a high ROI. Email marketing is known for its incredible ROI of up to $44 for every $1 spent. So, those $55 you spend to set up your email outreach can actually help you generate over $2,400 in revenue.
    Email Marketing ROI
  3. The process of cold outreach can be automated. This means more time to focus on actual sales, not routine manual tasks.
  4. It can also be easily scaled using the same software, unlike other outbound sales tactics, e.g. cold calling.
  5. Cold emailing is a multi-purpose strateg – Cold emails aren’t used solely for sales purposes. You can also rely on this strategy for
    • PR outreach, e.g. when submitting guest publications.
    • Recruiting, e.g. reaching out to potential candidates.
    • Networking, e.g. getting in touch with industry thoughts leaders or fellow-startups.
  6. Sheer scope and scale you can achieve with cold emailing
  7. Cold email marketing allows you to fill your B2B lead funnel quickly
  8. Cold emails reach users where they spend the most time — their inbox. For many, the inbox is the core of their day.
  9. Cold emails are persistent. A sales pitch on Twitter or Facebook has the potential to be seen by thousands of people, but anyone who isn’t checking their timeline right then will likely miss it. An email waits on the recipient.
  10. Enhanced Brand Awareness. Every mail sent to the targeted audience is a stepping stone towards conversion. It is through such emails that the audience is made aware of the products.
  11. Less interruption for customers. If we are to call a lesser evil between the two tactics, cold email is the way to go. With prospects having much more control on their inboxes than phone calls, cold emailing can be less annoying for them.
  12. Numerous Shares of the Email. Emails are very easily and conveniently forwarded through which the subscribers can share the deals, offers and the news with their companions by simply clicking the forward option. This is the process through which the subscribers help in promoting and advertising the brand. It further helps in better brand marketing. Therefore, just a single click by the subscribers helps in enhancing credibility and exposure.

Cold emails can be really handy when it comes to selling a product or a service, especially for financial services. As per a recent survey, it was reported by E&Y that 20% annual growth gets a boost when you promote your product and services via cold emails.

But again, it has to be executed correctly. How to send an effective financial services cold email? The answer is: Experimentation and Persistence.

 

Woman planning for a Cold Email campaign

Experimentation:

Find your target audience and devise a series of measured experiments until you find the message that works with your target audience. If you have more than 50-100 existing customers, then start with an analysis to find out who is your ideal customer profile.

If not, then start with breaking your target market into 4-5 small sub-segments (could be based on industry/ location/ company size etc). Then run a separate campaign for each of these sub-segments. With in each of these sub-segments, run experiments on different personas (CEO/ VP/ Manager etc)

Try different email messages (A/B testing). Be sure to measure the engagement rates (opens/ clicks/ website visits/ replies etc) for each campaign you run and double down on the ones that are working better.

How to write a great cold email?

The key to writing a cold email that really works is to make sure that it guides your prospect through a ‘journey’ – where they start off with a little idea about you, what your email is about and by the time they finish reading, they become ready to take the desired action you want them to.

The journey the prospect has to take should happen in three different stages – ‘Awareness Stage’, ‘Consideration Stage’ and ‘Decision Stage’.

  1. Awareness Stage – This is the stage where the prospect has to get an idea about who you are and what is the email about.
  2. Consideration Stage – This is where you get your prospects interested in your solution and turn that interest into serious consideration.
  3. Decision Stage – This is the final stage where the prospects have to get a clear understanding of what should be the next step of action.

And the best way to get your prospects through these stages is by focussing on the 6 different components that are the building blocks of your cold email.

  1. From Line
  2. Subject Line
  3. Introduction
  4. Value Proposition
  5. Call-to-Action
  6. Signature

Component 1: The ‘From’ Line

Objective: Letting the prospects know who the mail is from.

It is one of the first things that your prospects notices. You can use this space to build some credibility. Let your prospect know a little about yourself. Mentioning your name, or the company or both your name and your company are some forms of editing your ‘From’ line.

Component 2: Subject Line

Objective: To give the prospect an idea of what the email is about. 

Subject lines are one of the most important components in your cold email and could single-handedly decide whether your mail gets opened or not.

Component 3: Introduction

Objective: To get the prospects interested in your message.

Once the prospect has opened your email, you have about 5 seconds to persuade them to keep reading further. So, the sooner you get to your message, the easier it will be to keep them engaged. Below are some tips that will help with this task:

  • It is not about you but it should be about your prospect. Rather than starting the email with “I am the sales manager at xx…”, put the spotlight on the prospect. Eg: I noticed that you are using Mailchimp..
  • Ask them a question. But remember that it should still be about them. Eg: Are you looking for ways to scale your customer support?
  • Start with their pain point. Eg: As a fast-growing company, it must be challenging to find the right tools..
  • Lead with a compliment. Eg: Congratulations on the recent media coverage on {{company}}

Component 4: Value Proposition

Objective: To let the prospects know why you are reaching out to them.

This is the most important component of your email. The value proposition is the statement that defines how you can exactly help your prospect. Few tips:

  • Use social proof. Eg: Join companies like Uber and Airbnb, who use us to grow their social media presence
  • Exclusivity. Eg: Be among the first to use this cutting edge technology
  • The Bandwagon effect. Eg: Use the #1 Marketing automation software that can…

Component 5: Call-to-Action

Objective: To make the prospects take the desired action.

A Call-to-Action is the statement or text that prompts your prospect to perform what you want them to do; it could be anything: replying to your email, downloading a resource, booking a demo, starting a free trial, etc.

Component 6: Signature

Objective: To give more information about you and your company.

An often overlooked component, a well-polished signature can be the perfect pièce de résistance to end your cold emails. Email Signature is the part where you get an opportunity to let the prospect know more about you and your company.

Persistence:

The job is not done with finding the right message. The prospects are not going to respond with a single cold email. It generally takes about 7-8 follow ups to get a response. So following up is very important. Read our complete guide on the Art of Following up.

Use an automation tool which can help you send cold emails and follow up at scale, track the status of your sent mails, whether the prospects have opened, clicked/replied or even unsubscribed your mail.

In conclusion, cold email is a powerful tool IF done correctly. Companies can use it to promote their products and services, it is cost-efficient, meaning you don’t really need to spend a huge sum of money to make yourself known to your potential customers and still offers high ROI compared to to other marketing strategies. In our next topic, we’ll show you how to set up a Cold Email. Stay tuned!