6 steps for financial advisors to create a successful marketing strategy

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by Samuel Pordengerg Jan 24, 2023 News
6 steps for financial advisors to create a successful marketing strategy
6 steps for struggling financial advisors to develop a successful marketing strategy.

According to a recent Broadridge Financial Solutions survey, a defined marketing strategy can lead to greater success in a challenging environment.

According to the fourth annual financial advisor marketing survey by Broadridge Financial Solutions, only 43% of advisors see an increase in inbound prospect requests.

According to the survey, independent broker-dealers and registered investment advisers need to find innovative new solutions to overcome these challenges.

It has been a challenging year for financial advisers, with many struggling to adapt to new compliance and regulatory guidelines, increased market volatility, and ongoing hiring and talent retention challenges.

Despite evidence that staying on offense with a sharp marketing strategy yields business growth, we have seen advisers shift back to defense and fail to allocate the right level of time, money and effort to their marketing strategies.

Developing sound marketing strategy

Kevin Darlington, general manager, head of Broadridge Advisor Solutions.
Kevin Darlington

The impact of smart investments in marketing is having a big impact on growth oriented advisers. He said that wasted time and money is caused by increased spend without planning and measurement.

Advisors begin relationships with new clients by understanding their goals and coming up with a plan to get there. He said that advisors' marketing plans should be goal driven.

Financial advisors can use the following steps to develop a marketing strategy that can be measured and maximized.

  1. Define specific and measurable business growth goals, concretely outlining the number of new clients to be acquired and the growth of assets from existing clients.
  2. Clearly define specifics of the ideal target client. This needs to go beyond just their level of net investible assets; instead, it should be a more well-rounded set of target attributes: age range, key wealth building needs, occupation(s) and much more.
  3. Identify the key needs and relevant topics that are likely to engage this audience. “For example,” Darlington asked,” if you are looking for small- business owner clients, what might be key needs they have that can be leveraged into your marketing and content plans?”
  4. Identify the key ways to reach and engage this audience: paid channels (advertising), owned channels (websites, social email, etc.) seminars, networking, etc.
  5. “Build out your plan of how you will use your mix of content, channels and promotion to reach these prospects and connect more with your existing clients,” he said.
  6. Perhaps most importantly, Darlington asked, when new prospects are engaged, “how can they be nurtured over time to become clients?”

Marketing spend up, ROI satisfaction down

The percentage of revenue allocated to marketing was down to an average of 3.0% in 2022, compared to 3.6% in the previous year.

Only 10% of advisors said they were very satisfied with their marketing return on investment, down from 15% in the previous year.

Only 28% of advisors have a defined marketing strategy, up from 26% in the survey. The survey said that advisors who have a marketing strategy are more likely to achieve better business outcomes.

A majority of advisors with a defined marketing strategy feel confident in their ability to meet practice growth goals.

An advisor with a defined marketing strategy has on-boarded more than two times the number of new clients in the past year.

The top challenge when it comes to marketing activities is the development of a marketing plan/ strategy. Managing compliance and finding the time for marketing efforts are the next two things.

Digital media 'a bright spot'

Digital media usage is a bright spot and continues to show upward-trending success, as advisors double down on digital strategies and maximize the use of websites, Linkedin and Facebook to generate leads.

According to the survey, advisor success in converting social media leads to clients is going to increase in the next few years. This is an increase from last year. More than half of advisors with a marketing strategy converted a social media lead to a new client.

According to the majority of advisors, their websites could be more effective. Thirty-one percent of people plan to spend more on their websites this year.

Mseka has been reporting on the financial services industry for more than three decades. She was editor-in-chief of NAIFA's advisor today magazine. She can be contacted at amseka@INNfeedback.com

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