As a tech provider to over 150 brokerages worldwide and having been a part of the industry for so many years, we stand now with a bird’s eye view of the market and have a pulse on how the industry is changing.
Brokerages are being strained by increased competition and more awareness from traders and above all, by new changes in regulation. Regulated markets are becoming stricter when it comes to enforcement and unregulated markets such as Russia and the UAE are beginning to become regulated, effectively cutting down brokerage’s margins.
In order to survive these changes in the trade, companies will need to dramatically adjust. The classic ways to address acquisition, conversion and retention will need to be optimized in ordered to maintain or increase ROI. Even a small percentage of performance increase or decrease may mean the difference between success and failure and those brokers who are unable to adjust, will be phased out and become a part of history.
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In this four-part series, we’ll talk about tools, tips and strategies brokerages can use in order to increase their acquisition, conversion and retention rates and ride the wave of changing trends without drowning in the red ocean. Some of the tools we’ll cover are automation, social trading, convergence with binary options, geo-expansion into Asia, implementation of a success team, marketing and compliance and back-office.
“One of the main problems in online campaigns is that potential leads are leaving fictive details (E-mail/phone number) only to move on to the next stage in the funnel (they want to see how the platform looks like, or trade in demo mode). Most of these potential customers will leave your website and you will not have the ability to reach them. So what can you do? With automated systems, you can push these potential customers to make decisions when they are online, when they are interested in what they can gain from the platform, when they are still relevant. An automated system knows when and where the trader is online and activates a set of roles and messages that you as a broker have pre-scheduled. The system lets your sales staff know that this is the right moment to chat with the prospective customer, and gives you all the necessary information so you can say the right things. This is the way to really maximize your campaigns, this is the way to avoid irrelevant leads,” according to Eitan Bar-On, COO, Leverate.
Automation optimizes your conversion and retention processes by creating what we call self-conversion, or traders who convert themselves. It decreases expenses in your call center since the automated system can often take a lead from acquisition to conversion without any human interaction. An automated system is built on call to action features and messages, which are adaptable to the trader’s interactions that the broker can monitor. Responses from the system are immediate, which improves the process of conversion by not having to wait for a human to call back. Automation also helps improve a brokerage’s reach by removing the barrier of language or time zone.
So there you have it. The first tool in your arsenal to help you improve ACR rates and optimize processes. In Part II of the series, we will talk about how social trading and convergence of forex and binary options trading can assist in improving your ACR as well.