Good marketers are constantly looking for ways to innovate and to reach consumers in a way that will lead to conversions. After all, the point of most marketing campaigns is to connect your business to the right customers at the right time. So, with all the pressure to innovate, why haven’t we abandoned traditional marketing methods like direct mail?
The reality is, direct mail isn’t the same as it was 20 years ago. Advancements, especially in the financial sector, are constantly changing the marketing landscape. Direct mail marketing for banks is more digital-aligned and effective than ever—if you use it wisely.
What the Future Holds for Direct Mail in Banking
98% of the global population (age 16+) own a mobile phone of some kind. The world is saturated with technology, and most people are both connected with and overwhelmed by it. So, how do you cut through all the digital noise and get your customers to engage? Banks need to use direct mail strategies that integrate mail with technology. Here are just a few of the rising trends in direct mail and how financial institutions can capitalize on them.
1. Personalized Communication at Scale
Personalized marketing can’t be a lofty goal for the future anymore. It’s now the standard. People don’t want to be bombarded by irrelevant advertisements, app notifications, or postcards that will go straight to the recycle bin. 73% of customers expect better personalization as technology advances. Think about what that could look like for your company:
- A customer nearing retirement receiving content about retirement savings plans with customized savings insights.
- First-time home buyers getting information on mortgage options paired with pre-approval offers.
Financial institutions collect a wide range of data from their customers. Use that data to hone in on your recipients’ pain points, preferences, and ideal timing, and your message will resonate better with your customers.
2. Interactive and Integrated Formats
What is the biggest drawback of direct mail? Tracking its effectiveness. However, with interactive mail, calculating your ROI is becoming easier and easier. You can still use more traditional methods of integration, like providing your mail recipients with a unique phone number or URL, but there are new options out there too: QR codes, augmented reality (AR) overlays, near-field communication (NFC) technology, etc. As a financial institution, you could explore the following:
- AR Experiences: Don’t just tell your audience about the perks of your credit card—show them. AR experiences allow people to interact with your advertising on their mobile devices.
- NFC-Enabled Mailers: Customers could tap their smartphones on a postcard to open a personalized loan application form or schedule an appointment with a financial advisor.
These technologies (and others) make it easy to track conversions and integrate technology with your traditional marketing efforts.
3. Eco-Friendly and Sustainable Direct Mail
One concern consumers have with direct mail over digital is its ecological impact. In a 2022 study, IBM found that 51% of respondents said that environmental sustainability was more important to consumers in 2022 than it was in 2021. Banks can address increasing concerns about sustainability by implementing the following:
- Recycled or biodegradable materials
- Plant-based ink
- Partnerships with carbon-offset programs to neutralize the environmental footprint of large mail campaigns
Consumers are concerned about sustainability, but that doesn’t mean you have to ditch your paper (and your direct mail campaigns) entirely.
4. Automation and Predictive Analytics
Artificial Intelligence (AI) is extremely prevalent right now. The number of companies using this new technology has exploded in the last few years, and that’s a great thing for banks that use direct mail marketing. But, how?
- You can use predictive models to identify customers who are the most likely to open a new savings account, which prevents wasted mailing expenses.
- You could automate mailing schedules to ensure delivery times are aligned with marketing touchpoints or customer lifecycle moments.
Make technology work in your favor. Automation and predictive analytics can help you connect with your customers at the right time and for the right reasons.
5. Regulatory Changes and Compliance Tools
Data privacy is a hot topic right now, and that makes it even more important to stay on top of regulatory changes. Maintaining compliance in all areas of your business is important, but it’s especially important in marketing. In October 2024, The Consumer Financial Protection Bureau (CFPB) finalized their Personal Financial Data Rights Rule, changing how financial institutions handle customer data. Here’s why this matters:
- Consumers will be able to easily move their data between institutions. They will also have the right to ask institutions to remove their information from their systems.
- Competition for business is likely to increase, which means your relationship with your customers matters more than ever before.
When you stay up to date on regulations, you protect your company and build trust with your customers.
Stay Informed, Stay Competitive
With new innovations changing the landscape of direct mail marketing for banks, it’s important to stay informed. This will help you beat the competition, connect to your customers, and improve your ROI. In order to stay competitive, here are some of the things you look out for:
- Innovations in print technology and formats
- Changes to customer expectations around personalization and environmental issues
- Regulatory updates that impact financial marketing compliance
Staying on top of these changes is no walk in the park, but you don’t have to do it alone.
CPMI Solutions Keeps Your Business on Track
Navigating direct mail marketing in the banking sector requires expertise, insight, and a proactive approach. That’s where CPMI Solutions comes in.
At CPMI, we’re marketers first, and we specialize in direct mail marketing for banks. We help financial institutions carefully cultivate their messaging and strategy so they can reach the right customers at the right time.
Don’t get left behind. Partner with CPMI Solutions today and keep your direct mail strategy ahead of the curve.
