Traditional vs. Social: How Email & Social Media Stack Up

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Traditional vs. Social: How Email & Social Media Stack UpAs 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

Pros-

Email:

  • Inexpensive
  • Easy to track for conversion and calculate ROI
  • Sign-ups have expressed interest in your brand and message

Facebook Ads:

  • 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!

Cons-

Email:

  • Reliability of landing in the inbox and being opened
  • One-way communication

Facebook Ads:

  • 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!

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About Author

Amy Jones

Amy has been a marketing professional in Huntsville for over 15 years. She has a diverse background in marketing, special events and public relations from the corporate world, shopping center management and non-profit performing arts. As an account manager with Move Digital, Amy enjoys helping clients tell their story through a dynamic digital footprint. Amy is also the web content manager for Our Valley Events, a hyper-local website keeping the Rocket City in-the-know. During her non-screen time, Amy is the busy mom of 2 boys who likes to obsess over musical theatre, Doctor Who and Snapchat (in that order).