It is a pretty strong statement that digital marketing is an absolute necessity for financial advisors. But, it is true. Read why!
It is safe to assume big firms with substantial marketing budgets are already using digital marketing to build brand awareness, increase the credibility of their brands, and produce high quality leads for their firms. However, we believe a significant percentage of smaller financial advisory firms, under $1 billion of AUM, are still weighing the cost/benefits for the disciplines that make up digital marketing.
Our goal in the next few minutes is to provide the reasoning behind the title of this article.
“The Internet is a game-changer when investors use it to find, research, and contact financial advisors”
Dinosaurs
Like the dinosaurs, outbound marketing and its invasive sales tactics are largely extinct. Why invasive? Financial advisors were trying to contact investors who did want to be contacted.
Eventually, rejection rates for cold calling approached 100% and CallerID made the process even more difficult. In recent conversations with financial advisors about their current marketing strategies, less than 5% say cold calling produces any results for them or their firms.
Marketing Financial Services in the 2020’s
Digital marketing is no longer a luxury for financial advisors. In the past few years it has become the best way to help investors find financial firms and professionals. Financial advisors who are still using obsolete outbound marketing tactics are missing out on the investors who are using the Internet to find and research financial advisors.
The Internet makes it easy for investors to initiate contact with financial advisors. There is no rejection because investors reach out to advisors. Of course this is a little scary for financial advisors.
What if no one reaches out? That is the role of digital marketing. It creates online visibility so investors can find advisors. It provides compelling reasons why investors should contact advisors. And, custom lead generation websites convert more visitors into qualified leads.
Level the Playing Field
Many advisors believe only the brand name firms with the biggest marketing budgets can afford to utilize digital marketing strategies. Nothing could be further from the truth.
One way the Internet levels the playing field is local search. A small firm’s website can be sitting next to the websites of the biggest firms on Wall Street.
These firms may have brand name recognition, but there is a good chance that the investors using the Internet to find and research advisors are replacing their current advisors. And, those advisors may have worked for the brand name firms. Therefore, these investors may be seeking local, independent boutiques that are acknowledged fiduciaries and work for fees.
Sales Funnels
The best sales funnels mirror the buying processes of investors who rely on financial advisors to achieve their goals. The more compatible the processes, the higher the probability investors will use them to reach financial advisors.
For example, increasing numbers of investors are using the Internet to find financial advisors. Therefore, advisors want a lot of visibility on the Internet so they are easy to find. This part of an advisor’s digital marketing strategy matches the way investors search for financial advisors on the Internet. In fact, it is fair to say, the advisors’ sales funnels start on the Internet because that is where the investors found the advisors.
A custom website, high quality content, and a social media presence are the first steps in the sales funnel. That’s because this is where investors go to research financial advisors. What they see has a major impact on which advisors they contact to schedule interviews and presentations..
Digital marketing also enables investors to educate themselves about the benefits of working with financial advisors and how to select the best professionals for their situations. Educating investors creates another marketing opportunity for financial advisors who utilize digital marketing business tactics.
Measurable Results
Another key feature of digital marketing is the amount of data that is available to financial advisors. They know what is working and what is not working on a day-to-day basis. Problems can be addressed and enhancements that produce better results can be implemented in a timely manner.
Financial advisors who adopt digital marketing business practices will see significant increases in website traffic and lead flow. It may not happen overnight, but it will happen if digital marketing is implemented correctly over a sustained time period. According to the State of Inbound Report, two-thirds (67%) of financial services marketers found that inbound leads produced better quality opportunities than outbound channels did, while only a third (33%) felt the opposite.
Cost Effective
Digital marketing is also a cost-effective strategy compared to other marketing strategies. Financial advisors can leverage their digital marketing budgets to increase brand awareness, build thought leadership and start engagements with prospects for the cost of a part-time employee.
Digital marketing SEO (Search Engine Optimization) strategies typically cost less to run than other digital advertising SEM (Search Engine Marketing) channels such as social media advertising or paid search ads. In fact, according to VentureBeat research, 67% of marketers believe SEO produces their best leads with the highest conversion rates into revenue producing clients.
Conclusion
It is also the most efficient method for marketing firms to investors. It fits the way investors make decisions. The Internet is an integral part of their research and decision-making processes.
Even if they know the names of firms they will use the Internet to conduct their research. It gives them access to unprecedented amounts of information and they can maintain their anonymity while they view it.
How can a financial advisor get started with digital marketing? Partnering with an experienced digital marketing agency that has experience working in the financial industry is a good place to start.
