“There is too much email.”
“No one opens marketing emails”
“Email marketing for small business lending activity doesn’t work.”
In a survey of over 500 small business lenders conducted by Secured Research, 67% of new customers were acquired through some type of email marketing effort in 2023.
It turns out that email marketing works very well. It’s bad email marketing that doesn’t work well. In an age where social media and online advertising dominate, many have prematurely declared email as an origination engine for small business lending dead. However, when executed correctly, email remains a powerful and thriving tool. Here’s why:
1. Direct and Personalized Communication:
Email allows lenders to communicate directly with potential clients, offering personalized content tailored to their specific needs and business circumstances. Personalized emails show significantly higher engagement rates compared to generic mass messages.
2. Cost-Effective and Measurable:
Email marketing is highly cost-effective. It enables lenders to reach a wide audience without the hefty price tag associated with traditional marketing channels. Additionally, the performance of email campaigns is easily measurable, allowing for continuous optimization and improvement.
3. Building Trust and Relationships:
Consistent, informative and value-driven email communications help build trust and foster long-term relationships with small business owners. Educational content, success stories and regular updates can position lenders as trusted advisors rather than mere loan providers.
4. Segmentation and Targeting:
Advanced email marketing tools enable lenders to segment their audience based on various criteria, such as business size, industry and past interactions. This targeted approach ensures that the right message reaches the right audience, increasing the likelihood of successful loan origination.
5. Automation and Scalability:
Automation tools can streamline the email marketing process, allowing lenders to send timely and relevant messages at scale. Automated workflows can nurture leads, follow up on inquiries and remind clients of loan application deadlines, all while maintaining a personal touch.
6. Integration with Other Digital Channels:
Email marketing can be seamlessly integrated with other digital channels, such as social media, websites and CRM systems. This integration ensures a cohesive and comprehensive approach to lead generation and client engagement.
Conclusion
Email as an origination engine for small business lending is far from dead. But with most things, expertise matters. You might need help. When done right — either with the support of an expert financial marketing agency or by simply improving your own work — email marketing thrives as a powerful tool for building relationships, generating leads and driving business growth. Lenders who harness the full potential of email will continue to see significant returns on their marketing efforts.
