What is A/B Testing & why RegTech marketing teams care about it?
The RegTech industry is booming, and it’s widely reported that the global market will grow to more than $33 billion by 2026. Excellent news for organisations in the space. But with opportunity and investment comes competition and we know it’s tough out there.
So how do you set yourself apart? Subscribing to Gungho’s vast global data set of AML, FinCrime, Compliance & Risk personas, enables RegTech vendors to create fast, efficient & targeted emailing campaigns. With over 95,000+ email addresses in over 50 jurisdictions, subscribers access a launch pad to increase audience engagement and grow brand awareness.
Dedicated Gungho Account Managers help pinpoint the perfect audience by job title, geography, industry, time zone, size (& many other criteria) and combine this with proven A/B Testing to drive brand awareness and engagement.
In this guide, we’ll explain what A/B testing is and how it can improve open and click-through rates for the global RegTech industry.
A Brief Description of A/B Testing
A/B testing is a way for RegTech companies to turn small changes into big results.
The study of sending two slightly different emails to separate audiences is a great way to test content and understand engagement. A/B testing is the process of sending one variation of an email campaign to a subset of email subscribers and a different variation to another subset of subscribers, with the ultimate goal of working out which variation of the email campaign garners the best results.
A/B testing varies in complexity, and simple A/B tests can include sending multiple subject lines to test which one generates more opens, while more advanced A/B testing could include testing completely different email templates against each other to see which one generates more click-throughs.
The purpose of A/B testing is to gain valuable insight, allowing marketing executives inside RegTech companies to constantly refine email strategy and improve engagement rates.
To build subscribers, attract the best ROI & pool of opportunity, click through and engagement rates, read our Favourite A/B Tests for RegTech Vendors.
Our Favourite A/B Tests for RegTech Vendors
1. Date & Time
Sending out an email campaign at the right time can improve engagement performance. There is no universal time that guarantees the best results for all vendors and audiences. The best time can vary based on time zone, time of year, industry, and job title.
2. Subject lines
The subject line is one of the most prominent elements of an email campaign when viewed in the inbox. The ideal length of email subject lines is a hot topic in email marketing, and a recent study from Return Path shows that the optimal length is around 61-70 characters.
3. Word order
The order in which words are placed in the email subject line can make a difference and can potentially impact open rates. Front-loading the benefit can help improve open rates. Consider the two example subject lines below for the same email:
- Use this discount code to get 25% off your Delegate Pass at RegTech World
- Get 25% off your next Delegate Pass at RegTech World using this discount code
In the second variation, the benefit of opening the email (getting 25% off the Delegate Pass) is placed at the beginning of the subject line and always secures better results.
4. Copy & Content
Amongst many of our long term RegTech clients, there is a trend towards using shorter copy. The length of the copy depends on email design, audience, and the complexity of the product. We regularly debate this topic and recommend testing to see whether short or long-form copy secures more subscribers to click-through and engage.
If the email contains multiple pieces of content (like a RegTech Industry Newsletter, for instance), we recommend testing different pieces of content as the subject line. This is a great way to improve open rates and learn what kind of content resonates best.
5. Visuals & Style
Research shows that the human brain processes visuals 60,000 times faster than text, which means using images in email campaigns is a powerful way to get the message across. We frequently recommend that our clients don’t just have to stick to Plain Text and using different types of visuals can help identify which works best.
6. Calls to action
The call to action is the most important part of any email marketing campaign. The call to action needs to be clearly explained and laid out to the reader. Getting this right will increase the email click-through rate. Generally, there are two options for creating calls to action in email campaigns: adding buttons or using simple hypertext links. We’ve found that using buttons is a better approach, and generally our campaigns get an increase in click-throughs by using a button instead of a text link.
The popularity of A/B Testing is widely known, and it is well suited to helping RegTech companies, especially their marketing teams, answer questions like, “What is most likely to make people click? Or buy our product? Or register for our event?” By experimenting – deep insights can be rapidly gained and put to effective use, helping drive engagement rates and brand awareness.
We’d love to share how we support many companies in the RegTech industry with email marketing and A/B Testing, do get in touch to find out we can help grow subscribers and increase click through rates. Contact firstname.lastname@example.org or phone +44 203 326 8150