Social media has entered our lives for quite some time now and it’s slowly found its way into our daily routines, becoming an integral part of our day to day interactions.
Social media statistics show that there’s an average of 3.2 billion users globally* (which equates to 42% of the global population). Additionally, Forbes emphasizes the importance of the impact of a positive customer experience on social media, with 71%** of consumers who have had a positive experience with a brand saying that they are likely to recommend the brand to their friends and family.
Clearly, social media is not simply a platform through which you can attract new customers, it is much more than that. Social media platforms are a vital part of the CLV (Customer Lifetime Value) equation in our age and time. Your social media strategy should strongly focus on client retention, which in turn should increase your volumes. Social media platforms provide fx brokers with the opportunity to build on client relationships as well as providing an interaction and communication avenue where forex brokers can build trust and loyalty with their followers.
Why is a retention strategy important in increasing volumes and lifetime value?
If you are in FX Brokerage marketing and sales, there’s a high chance that ROI (Return on Investment) is a word that occupies quite a significant amount of your time. Incorporating customer lifetime value in your social media strategy allows you to stay in the know of your clients needs and wants.
Forex marketing tips
Retaining your current traders is far less expensive than acquiring new ones.
Three strategies to increase your CLV
We have prepared a short list of 3 strategies you can implement within your social media strategy that should enable you to increase volumes, the CLV of your forex traders and therefore your forex marketing ROI.
Increase amount per deposit: Within your social media strategy your goal should be to motivate traders to increase their deposits or redeposit based on incentives and market movements. This is more of short term strategy and focuses on the individual deposits rather than the quantity of transactions.
Increasing deposits over time: Whereas the previous strategy focuses on individual deposits, in this approach brokers are encouraged to focus on the quantity of transactions by creating loyalty to the brand and a diversification of the products / services. Brand loyalty and diversification allows brokerages to increase the volume of transactions over time and as such the CLV. For example, introducing services such as news, reports, educating your traders over social media, hosting live webinars, attributes unique value to your channels and creates a relationship with your followers which will in turn increase the engagement with your brand.
Reducing your costs: Emphasizing on your customer support (CS) and offering CS through social media platforms enables you to significantly lower your HR operating costs which includes your sales as well as your customer support teams. That means that by lowering your costs, the value of each trader will increase your bottom line. Two simple examples of how this can be achieved is as follows:
- Automating your social media channels and serving unique content through natural language generation which will consistently offer your traders the latest news and reports on time and branded, eliminating the need for an analyst and a social media manager to handle the accounts.
- Social media chatbots can be implemented to navigate users through the first steps of their interaction with your brand. Enabling users to get answers right away, directing them to customer support agents only when necessary.
Increasing your CLV and in turn your volumes is directly related to the social media strategies developed both in the short and long term application of the chosen strategies. Stay ahead of your competition by investing in customer retention, prioritizing client relationships and trust will increase both your CLV as well as your clients trading volumes.
Invest in tools that matter.
*Emarsys, 2019 – https://emarsys.com/learn/blog/top-5-social-media-predictions-2019/