It is not too early for financial advisors to start thinking about their marketing strategies for 2023. In some cases, you may need to add essential marketing resources in the fourth quarter of 2022, so they are available for use by Q1 of 2023.
It’s vital to note that these marketing tips work best for fee-only financial advisors (RIAs and IARs) who own their brand and financial advisor website. Many of the marketing tips will not work for other types of advisors.
This article will cover seven difference-making recommendations that can make 2023 a fantastic year for adding clients and turning current clients into better sources for high-quality referrals. We will show you how to:
In a recent coaching session with a financial advisor, we determined he was an exceptional planner and money manager. But, the advisor did not believe he was very good at marketing his firm's services.
When we dug a little deeper, the advisor acknowledged that he did not believe marketing was a good use of his time. He was more productive when he focused on the needs of his current clients. He was able to dramatically improve his results by letting digital marketing for financial advisors do more of the work for him, as he:
The net result: His rate for converting leads into clients more than doubled (15% to 36%).
It stands to reason that financial advisors spend more time communicating with their current clients during volatile markets. As the saying goes, “a bird in the hand is worth two in the bush.”
However, turbulent markets also create unique marketing opportunities because money is on the move. The movement of assets creates significant marketing opportunities for more enterprising financial advisors.
Following are three examples of movement:
You have heard of the DIY (Do It Yourself) investors. They are comfortable managing their assets in bull markets, but a high percentage of them seek professional help in turbulent markets.
We have already heard from several investors that their “financial advisors went dark” during volatile markets. It turns out many of their advisors were commission sales reps. They went dark because they had already been paid and did not want to face the consequences of their sales pitches.
Millions of baby boomers will retire in 2023 and are very concerned about managing their assets during turbulent times. How much money will they have, and who will manage it for them?
Needless to say, to be effective, there are big differences between traditional and virtual marketing tactics.
For example, sales skills matter more when financial advisors are face-to-face with their prospects. However, the importance of sales skills diminishes in virtual sales situations. What matters most is the ability to communicate the following information that helps investors make the right selection decisions:
It does not hurt to document this information, so prospects don’t have to rely on verbal communication. Retention rates for verbal information average 20% and are lower when investors interview multiple advisors. You create a competitive advantage when you are the one they remember.
Step one in any sales funnel is how you are found. Your potential client could be referred to you by a friend, family member, or center of influence, but these referrals are usually few and far between. Millions of investors do not know you—they are the most likely to look for financial advisors online.
Step two is using the Internet to screen you. Most investors are reluctant to give up their anonymity until they are ready to initiate contact.
If they like what they see, they are more likely to contact you. This is the front end of the funnel that produces leads for your services.
Imagine if there were two ways to market your services.
That is the power of digital marketing for financial advisors.
Would you go to a brain surgeon if you needed a knee replacement? No, you would go to an orthopedic surgeon on the basis that a specialist will produce a better result.
We are conditioned to select specialists when we choose doctors; this carries over into other professions.
Another way to view this preference is through web pages. One of the most visited pages on a financial advisor website is the “Who We Serve” page. Investors want to know if you work with investors like them. They believe specialized knowledge will benefit them.
Many financial advisors miss out on this opportunity. They are concerned they will miss a major investment opportunity if they are specialized. Instead, they say they will work with anyone who meets their minimum asset requirement.
This is a major mistake.
The answer is absolutely: A financial advisor’s best type of lead is a referral from a satisfied client. The predisposition of the referral is to hire the financial advisor based on the experience of the referral source – a significant competitive advantage.
Financial advisors should use webinars to communicate with clients and encourage them to invite friends, family, and associates to the “free" webinars.
Another application is email marketing which encourages current clients to forward certain financial advisor communications to people they know.
If financial advisors sponsor Resource Centers on their websites, they should encourage current clients to visit the center and invite their friends.
The standard tactic for these applications is to use the Internet and digital marketing to promote your brand through people you already know to reach the people you don’t know.