This article was written by Anna Becker, CEO of All Sherpa. Learn more about how data intelligence and behavioral science can drive redeposits.
Many in the retail trading industry lament the increasing regulation which restricts aggressive marketing and bonuses. Brokers have complained that regulation is interfering with one of the core ‘proven’ marketing techniques helping them to convert and retain their customers.
The truth of the matter is, that these hard-sell techniques were dead long before regulators got involved. Starting in 2015, we started working with some forward-thinking brokers about how to replace aggressive marketing programs that were ineffective and certainly cost-inefficient with smart marketing programs.
Free dog food for all
Here is an insight we shared with a retail broker April 2015.
‘Bonuses are like free dog food. For some, they are great. They have a dog, they were going to buy dog food anyways, so why not! But for many others, who don’t like pets, or own a cat… no amount of free dog food is attractive.”
Those of you long enough in the industry know that in the last three years brokers were relying heavily on free dog food strategies. Acquisition and conversion efforts focused on aggressive trafficking and pushing bonuses. First on the landing pages, then with retargeting campaigns, and eventually with automated ‘smart’ emails.
This marketing approach targeted unsophisticated customers. They played on unsuspecting clients by using aggressive marketing tactics.
Brokers had a bonus tool at their disposal, and boy were they happy to use it aggressively to bring new traders. Wild promotions and bonuses were heaped on time to create a sense of urgency. A bonus on top of a bonus.
Broker and affiliate marketing became a grey zone, but brokers were trapped by their own success.
Enter profitable marketing
Profitable marketing means offering dog food to dog lovers, cat food to cat lovers and filet mignon to premium customers.
With ever-increasing regulation, brokers cannot continue using aggressive marketing to gullible clients. The regulatory requirements will affect brokers all across the industry. Instead, clever marketers can offer the excitement of trading the markets to interested clients in new compelling ways. By identifying what motivates a potential trader, and how to satisfy them, brokers can build robust, reputable and profitable businesses.
For example, identifying customers’ motivation, whether they are interested in learning new skills, attracted by taking an active role in their finances, or just for a pastime activity, brokers can design offerings and experiences that attract and satisfy those customers.
Imagine that you know all the personal details of your next prospect. You know their income, their family status, education, spending habits, and even character. Could your marketing team craft an effective campaign for this prospect?
We know that your marketing team can be more effective with this customer, than by using non-compliant aggressive sales tactics.
As a matter of fact, our work with data-savvy brokers has shown that by successfully integrating 3rd party profiling data into campaign funnels, brokers can improve conversion by several orders of magnitude vs. similar funnels based solely on bonuses and call centers.
Winning with customer data
More and more brokers have business analysts to turn their own data into profit. Cutting edge brokers have seen that combining internal profitability and usage data with 3rd party data can bring profit breakthroughs and operational savings.
Sherpa augments client profiles with 3rd party data so that brokers can know who customers really are – not what they say on a call, or what they write on their forms.
If you know true information about your clients, you can use it improve your brokerages’ bottom line.
See who your clients are – iFX EXPO opportunity
And now, for the perk. Sherpa will take an active role at the upcoming iFX EXPO International, which is kicking off this evening. First, you are invited to attend the Marketing Funnel Revisited panel on May 25th, at 10:45. I will be there to run my theory and practice of data-driven marketing against other industry experts.
Second, Sherpa will be offering a full customer profile for free to 10 brokers. This is your opportunity to harness your data and our experience for your own ROI. To see if you qualify for the customer profiling, contact us here, or come to say hi at the show.
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