Nearly everyone in America, from Generation Z to the Silent Generation, has experienced what it’s like to live through a recession or depression. Thus, it’s not surprising that when the economy begins to falter, consumers may become more protective over their money and financial decisions. But, with every ebb and flow of the economy, there is an equal adjustment you can make to your marketing strategy to attract and retain clients.
Use the following tips for marketing financial services regardless of the economic condition.
Don’t Get Paralyzed
When the economy shows signs of weakness, the marketing budget is often the first expenditure to be slashed. Unfortunately, this can do more harm than good for your business. Without marketing financial services, your business could lose relevancy and recognition, both of which help bring customers through the door.
Rather than halting your marketing outreach, extend your strategy. Perform customer research to reexamine your customers’ changing needs and realign with their expectations. For instance, rather than focusing on stocks and investment funds, you may discover your clients are looking for credit repair help.
Hold a steady pace, but redirect your vision. Rather than eliminating marketing efforts, take a step back to see how a changing market affects consumer behavior. Then, realign your messaging to stay relevant.
Help as Consumers Rebuild
Many Americans are still rebuilding from the 2008 recession. During that dark period of American economic history, eight million jobs were lost, unemployment skyrocketed beyond 10%, and the Dow and S&P 500 lost half their value.
Businesses were ruined, and families lost their retirement savings, homes, and sense of self-worth.
Regardless of the current economic outlook, no one wants to go through that pain again and credit repair specialists have an obligation to help repair and re-educate their community so that they are better prepared for an economic downturn. Craft your credit repair company’s brand messaging to position yourself as a leader and a resource for weary consumers.
By continuing to help consumers rebuild and preventing them from experiencing financial hardship from poor financial decisions, you’ll be providing an invaluable service.
Don’t Put All Clients in the Same Bucket
Each client experiences the effects of an economic change uniquely. Rather than creating a marketing message to cater to a mass market, develop and refine personas for more precise messaging.
Personas are a component of digital marketing for financial services that enable you to define your customers based on market research and data from existing customers. Consider these fictional examples:
- Frozen Fred: Might represent the group most vulnerable to economic hardships. In this example, Fred may be very meticulous about where his money is going. To land Fred as a client, he may need to know that your financial services can help him rebuild his credit and straighten out his finances so he’s less affected by the financial changes.
- Dented Denise: This segment of clients may be impacted by the downturn, but not paralyzed. Denise can carry on with some aspects of her life, though she’ll need to pull back on others. Denise may need occasional comforts and reminders of how to stay strong and prepared in the changing climate.
- Comfortable Curt: He feels about the same today as he did before the downturn. However Curt acted before, he will likely continue the same routines. Using the marketing message that’s worked for you in the past could still work well with Curt.
- Living it up Liv: She may not feel the impact of the economic downturn, and may even notice gains in her personal bottom line. Not only might she still comfortable and confident in financial institutions, but she’s also ready to take advantage of opportunities that may have appeared due to the downturn.
The aforementioned personas are not based on market research. For you to build more specific representations, get to know each of your clients, conduct market research and draft personas to help revitalize your marketing efforts for more effective outreach.
Customizing marketing messaging to reach each type of your consumer will help you maximize your reach and your services. Build personas to help you maintain consistent and effective marketing messages.
Continue to Show Great Results
Customers who see the positive results of your services will continue to spend their money to employ you regardless of what the economy looks like. Better yet, customers who see results are likely to spread the good word to friends and family, too.
According to a Nielsen study, 92% of consumers say recommendations about a product or service from friends or family do more to persuade them than advertising. When it comes to matters of finance, referrals are especially important. Consumers want to know their money is in good hands, and by hearing it from someone they trust, they can feel more confident in choosing to work with you.
The best marketing tool a credit repair company can have are the referrals from loyal clients. No matter how the market looks, quality service will prevail. Continue to provide great work and the pipeline of clients will be endless.
Financial services professionals have a unique opportunity to help clients regardless of the economic environment. During uncertain economic times, financial service professionals should continue to have a strong marketing presence by redefining clients and identifying new customer behaviors in order to keep a full pipeline and high conversion rates.
Learn how you can add more products, including credit repair, to your financial services business so you can help your clients regardless of economic trends.
Understanding Bitcoin as an Investment
Analyzing Bitcoin as an investment
Bitcoin has been at the forefront of financial news for a while now. More people want to also understand bitcoin as an investment. Every day, more and more talk about Bitcoins is occurring, not only as a digital currency but also as a financial investment. Many people are intrigued by this digital currency, but they also have reservations about it as well. For now, we will discuss how to evaluate bitcoins as an investment.
There are Bitcoin exchanges, just as there are stock market exchanges. As of November 2017, the largest full-trading Bitcoin exchanges that are available to everyone include, Bitstamp (a Slovenia based exchange), Bitfinex allows you to swap or buy Bitcoin, Litecoin, and Darkcoins. Coinbase is based out of San Francisco in the United States and touts itself as a one-stop solution for Bitcoins. Cryptsy, based in Florida deals with most of the altcoin currencies. BTC-e (based in Bulgaria), and Kraken (based in the United States). The world’s largest Bitcoin exchange, BTC China, is based in China, but that exchange only allows exchanges of bitcoins for Chinese Yuan/Renminbi.
In order to open an account with these exchanges, you usually have to link a bank account to your Bitcoin exchange account, as you need to wire transfer the money for bitcoins to use in your account. Credit cards and PayPal are not options [at least not at the time of writing] because the transactions can be reversed very easily, whereas a wire transfer cannot be reversed (Need financial advice on this?)
Usually, only bank accounts from that specific exchange’s home-based country can be linked to the exchange account (for example, CoinBase, based in the U.S., only allows U.S. bank accounts).
Like the financial stock markets, bitcoins fluctuate in value against real currencies such as the U.S. Dollar, the Euro, the Japanese Yen, and others. One important distinction between Bitcoins and real currencies to this point in Bitcoin’s history is the fact that Bitcoin’s valuation has been much more volatile than real currencies.
In December 2013, Bitcoin’s valuation went from about $675 down to about $425 within twelve hours, about a 37% drop in valuation. That is virtually unheard of with any real currency (barring something major like The Great Depression or some other major economic event).
The reason that this sharp drop in valuation took place is that the People’s Bank of China told third-party payment processors that they should have nothing more to do with Bitcoin exchanges. As a result, Bitcoin kept getting cut off from being supplied by the payment processors; in fact, Bitcoin was cut off by three payment processors inside of a week. Banks have also been told to not deal with Bitcoin any longer.
This event reflects the major concern that most financial experts have about the currency. Many feel it is too volatile as an investment, leading to sharp price spikes and declines that are virtually not seen in other currencies, the equity market, or mutual funds. Most financial experts feel that the digital currency must stabilize in value and not be so prone to such rapid peaks and valleys for it to be taken more seriously as a solid investment.
In the past, the problem that many financial experts and institutions have had with Bitcoin is that not enough is known about how the currency is mined and how it is “regulated”, so that the currency stays on track of having 21 million bitcoins in the year 2140.
While safeguards are in place to keep the currency on that path, there have been attempts to try to disrupt the network and give a few select bitcoin miners the ability to mine as many coins as they wish. There has also been concern that a group of miners could combine together, and work toward their mutual benefit, and to the detriment of everyone else on the network. This would occur by harnessing their mining power to get more coins for themselves and leave little to the rest of the network.
Some will always question and doubt how legitimate of a currency Bitcoin is, including its true valuation. This is likely due to the fact that Bitcoin was the first digital currency, and financial experts are unsure of how to truly evaluate its worth.
More and more companies are starting to accept it as payment, but not enough is known about the mining process and how it can maintain itself to fulfill the promise of 21 million bitcoins in the year 2140. Plus, Bitcoin can be susceptible to wild value peaks and valleys whenever an event associated with the network takes place, such as when Chinese third-party payment processors and banks are told to not deal with Bitcoin exchanges.
Large companies such as Stripe and Shopify are now accepting Bitcoins as payments. This trend is only going to increase.
However, in 2017, one Bitcoin is valued at over $7000 US dollars. So, it has gained ground as an accepted currency in the digital world and does have a high-value these days.
What Baby Boomer Retirement Means for New Financial Service Professionals
Baby boomers are aging, and their retirement is making way for newer financial service entrepreneurs. With more jobs opening up and the digital world changing at an accelerating pace – professionals starting their career are in an ideal position.
A retiring generation not only means a new workforce, it also means new ideas and methods that can further modernize the financial service industry. Read on to learn how baby boomers phasing out of the industry, along with new technology in the financial services market, is setting up financial service professionals for success.
5 Ways That Credit Repair Benefits Financial Services Businesses
Are you looking to add a new offering to your business skill set? Credit repair is an in-demand service that goes hand-in-hand with other financial services. Not only can repairing credit for your clients increase your revenue, it can also help you retain clients for other financial services. Read on to learn five ways credit repair can benefit your financial service business.
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