Binary Options Broker Case Study
“80% of our FTDs are directly or indirectly related to email advertising”
In two years a burgeoning binary options white label has grown into a very successful broker, accumulating over $125,000 in first time deposits (FTDs) with overall deposits in excess of $370,000 within the first 6 months alone.
In 2012, the CEO (a former Forex Trader turned Binary Options enthusiast and Forex affiliate / IB) saw a way to turn his passion and interest into a viable and profitable business.
He admits, “I had grown a list of over 23,000 email addresses, but as a PPC, banner and article affiliate marketer I knew little to nothing about leveraging my email addresses other than knowing that I had a pot of gold waiting for me to siphon.”
Not being sure what to send clients over email, the marketing head started sending emails sporadically with information similar to the content from blogs. Emails were being sent twice a month and over the course of a few weeks the list went from a 23% open rate to 2.4%.
One big problem was that the leads within the list were not always interested in the content as some were veteran traders who knew the basics already. Some others were new traders who didn’t understand all the financial jargon being used in the messages.
After a free email marketing audit the following issues were identified:
- The leads didn’t trust the sender
- The leads were not confident in their skills hence would not deposit or trade
- The leads already had trading accounts with competing platforms
After a thorough analysis of the specific business circumstances, Inspired Publishing were able to distinguish 3 main areas where the email marketing strategy being used was causing issues.
As Tiz Corta, CEO of Inspired Publishing explains, “Our 3-pronged approach of focusing on a) segmentation, b) message and c) end goal allowed us to really drill down to the root of the issues and develop a strategy of email marketing that cut to the heart of what the business wanted to achieve – more FTD’s, more retention deposits and more overall trading activity on the platform.”
Understanding the clients’ mentality, Inspired Publishing decided to focus on creating a sense of personality, trust, expertise and value within the email content being sent.
This was achieved by:
STEP 1 – Tailored landing pages for lead acquisition. Lead magnets were produced for each group of traders (technical traders, trend followers, “gamblers”, stocks or currency traders, beginner or experienced traders, biz opp traffic, etc). Localized/translated versions where produced in 3 languages (Russian, Arabic and French).
STEP 2 – Segmentation of current and new leads based on the trading interests above. For each of the main lead segments, a dedicated lead nurturing email funnel was developed to increase self-conversions and boost sales agent conversions. Call centre conversions increased drastically as the majority of client onboarding was now done by email. The sales agent’s role had now become only answering final questions and taking payment details.
STEP 3 – Drip-feeding of email funnels specific to the trader type, which built a personal relationship between the lead / depositor and the sender (aka the binary options brand). Recipient were able to trust and interact with the email content on the operator’s site, on social media, Youtube, etc. To make content more engaging, storytelling was used amidst technical / educational content.
“80% of our FTDs are now directly or indirectly related to email advertising”, said the brand’s CEO. When surveyed, 80% of first time depositors (FTDs) stated that the email content they received from the brand contributed or contributed strongly in their decision of depositing with the company instead of the competition. 43% of depositors placed their investment within receiving the first 5 educational emails from the broker.
“We get a lot of customers who decide to educate themselves before placing an investment. And email marketing is one of the best ways if not the best ways to deliver that training. It’s great because both parties feel like they have gained something from one another and this reciprocation cultivates a great relationship between trader and broker,” says Roger M., VP Sales. “They feel that they have received value from us right from the start and continue to receive training and signals from us throughout their time on our platform which works wonders for retention and trading turnover”
Whilst automated email marketing increased deposit volumes and FTDs, it has also enabled the business to reduce the number of call centre representatives. Telephone costs also decreased as most of the educational questions about the platform and binary options were answered through drip-fed emails ahead of sales calls.
You might also like to read:
- Free Training – Boosting Your Online Business Profits
- Examples of email designs and funnels
- Product Presentation
The CEO and the brand have asked to remain anonymous for the purposes of this case study.
Edwin Moossaian, Co-founder, Newpage Technology Inc - “There’s a reason you guys do what you do. I’m very impressed with the campaigns.”
David Moeller, CEO, CodeGuard.com - “I LOVE the new copy!!!! So strong!!!”
Josh Van Tassel, Arlington (VA), United States - "I highly recommend DVFX"
Marketing Director, Financial Services Company, United Kingdom - “We made our investment back 4X with the first email blast”