6 Steps For Financial Advisors To Create A Successful Marketing Strategy

A recent study by Broadridge Financial Solutions found that while market volatility, increasing compliance pressures, and a competitive environment have created challenges for financial advisors seeking new clients, the right marketing strategy can lead to greater success.

According to Broadridge Financial Solutions' fourth annual Financial Advisors Market Survey, only 43% of advisors see demand leading revenue, while 63% are actively seeking new clients.

To address these challenges, independent broker-dealers (IBDs) and registered investment advisers (RIAs) must find new and innovative ways to do business, the study says.

Kevin Darlington, CEO of Broadridge Advisory Solutions, said: “It's been a challenging year for financial advisors as many have had to adapt to new requirements and regulations, increased market volatility and continued challenges in hiring and retention.

"Despite the evidence that striking with a clear marketing strategy can lead to business growth, especially in volatile markets, we have seen advisors go on the defensive and not invest the right time, money and effort in their marketing strategy," he said. . She says:

Develop a strong marketing strategy

Darlington adds that smart investing in the market has a big impact on growth-focused advisors, setting them apart from their growth counterparts. According to him, increasing costs without careful planning and measurement will only result in a waste of time and costs.

Consultants usually begin a relationship with a new client by understanding the client's goals and then developing the best plan for achieving those goals. Referral marketing programs also need to be targetable, measurable and optimized, he says.

For financial advisors, Darlington suggests the following six steps for developing a strong marketing strategy that can be measured and improved.

1. Set specific and measurable growth goals for your business, detailing the number of new customers you need to acquire and the growth of your existing customers.
2. Clearly define the characteristics of your ideal target customer. This must exceed the modest rate of their net investment property. Instead, it should be a more comprehensive set of target characteristics: age range, basic wealth needs, occupation, etc.
3. Identify key interests and current topics that might interest this audience. "For example," says Darlington, "if you are looking to find customers for a small business owner, what are their top interests that you can incorporate into your marketing and content programs?"
4. Identify the main ways to reach and engage this audience: paid channels (ads), niche channels (websites, social media posts, etc.), workshops, networking, and more.
5. "Develop a plan for how you will use your content, channels, and promotions to reach those prospects and better connect with your existing customers," he says.
6. Perhaps most importantly, Darlington asks as new prospects arise, "How do you nurture them over time to become customers?" he asked.

Marketing costs increase, ROI satisfaction decreases

With the average growth in marketing consultant "spend" ($17,433 in 2022 compared to $16,090 in 2021), the share of revenue spent on marketing has declined from 3.6% in 2022 to an average of 3.1%. Question.

Plus, according to the survey, 10% of advisors say they are very satisfied with their marketing ROI, compared to 15% in 2021.

According to the survey, despite increasing marketing spending, only 28 percent of advisors have a specific marketing strategy, compared to 26 percent in 2021. According to the survey, these consultants are more likely to achieve better business results compared to their counterparts who do not have a clear marketing strategy .

Seventy-six percent of consultants with a clear marketing strategy are (somewhat or very) confident in achieving their practice development goals, compared to 61% of consultants who have no marketing strategy.

In addition, advisors with specific marketing strategies attracted more than twice as many new clients in the past 12 months. That's an average of 41 new customers compared to 17 for those without a specific marketing strategy.

82 percent of consultants say that developing a marketing plan or strategy is the biggest challenge in marketing activities. This is followed by time for marketing efforts (81%) and compliance management (79%).

Digital media is a beacon of hope.

"As advisors double down on their digital strategy and leverage websites, LinkedIn and Facebook, the use of digital media is a bright spot and success will only increase," said Darlington.

On the lead management side, research shows that the success of advisers in converting leads from social media to customers is steadily increasing, reaching 41 percent in 2022. That's a 34 percent increase from 2019. 57% of consultants. These had a distinct marketing strategy that converted social media prospects into new customers, compared to 36 percent who had no strategy at all.

The majority of consultants (61%) believe their website can be more effective at attracting potential clients. According to the survey, 31% plan to spend more on their website this year, the highest share of spending in any industry.

Ayo Mseka has more than 30 years of experience in the financial services industry. He was previously the editor of NAIFA Advisor Today magazine. Contact him at [email protected] .

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