Traditional vs. Social: How Email & Social Media Stack Up
As much as we believe in the power of social media, and especially advertising through social media, email is still king.
In fact, a new study shows that 48.2% of banks and credit unions plan to increase their email spending in 2017.
Clearly, we love email! Not just we as in me and my co-workers, but we the collective people. 86% of consumers like to receive promotional emails from companies they do business with at least monthly, and 15% like to get them daily (Statista, 2015).
If someone signs up for your bank or credit union’s emails/newsletters, it’s an open invitation to market to them. They WANT to know what you have to say and how you can help them meet their financial goals. If you’re smart about the types of emails you send, it can pay off big – helping retain current customers and potentially score new ones.
In fact, according to Campaign Monitor, a popular email marketing resource, expect an ROI 3800% and $38 for every $1 spent.
But how does email marketing measure against running Facebook ads? Is it superior, or can they work hand-in-hand?
How Email & Social Media Stack Up
- Easy to track for conversion and calculate ROI
- Sign-ups have expressed interest in your brand and message
- Ability to make edits in real time and easy A/B testing
- Reach potential customers that haven’t heard of you
The average email open rate for banking, finance, and insurance is 8.29%. Considering many quality email services are free to use (like Mailchimp and their Forever Free option) then you are already at an advantage over Facebook ads which require you to spend money for that kind of reach.
We consider the best approach is using a combination of both. Nurture and grow your email list and spend the time it takes to deliver great emails. At the exact same time, run a Facebook ad campaign that grows your email list (a lead gen ad or a link ad).
It’s utilizing the strengths of both tactics and that’s working smart!
- Reliability of landing in the inbox and being opened
- One-way communication
- More expensive than email
- Potential to waste money if managed poorly
- Time investment – set-up, monitoring, analytics
If the average open rate is 8.9%, that means almost 90% of your bank or credit union’s email list does not open your email. It can be an unreliable tactic when you have a really important message to get out. Email also lacks the social part that is such a strength of social media. When you run Facebook ads, you have the ability to interact in real-time and get a clear read on how your message is being received.
Give It A Try
There are advantages to both email marketing and social media ads, but the best strategy of all just might be using them together for your bank or credit union!