Digital marketing for financial advisors can be the COVID-19 lifeline that many firms need. The COVID-19 era (2020-2021) is reshaping many facets of Americans’ lives. Now when we leave the house, we make sure we’re not only carrying our wallets and car keys but also our masks. Movie theatres are still showing promotional posters for movies that were released in March 2020. Of the restaurants that have been able to open, many are still required to cap their occupancy at 50% or less - sometimes much less. The lines between our professional and personal lives blur as our living rooms become our offices and our guest rooms become classrooms.
Who knows what the future holds? We do know financial advisors need to adapt to these unprecedented times along with the rest of America.
What Does COVID-19 Mean for Financial Advisors?
Amid the many COVID-19 changes, there has been a positive shift for financial advisors. That is, more Americans are seeking financial advice from professionals due to increased market volatility. Plus, the way that investors are connecting with financial advisors is entirely different than it was pre-pandemic.
For starters, print content is going the way of the dinosaurs. Subscriptions to print media have plummeted, especially as digital subscriptions have grown in popularity over the past decade. Who wants to read yesterday’s news. Already on the descent, print subscriptions took even more of a hit as concerns about COVID transmission via infected surfaces proliferated. All of this is to say that firms that continue to focus their advertising efforts on print media will be speaking to an ever-shrinking audience.
As a whole, the financial services industry spends less than other industries on digital marketing. That’s because companies rely on the sales skills of hundreds of thousands of professionals to sell their financial products. Consequently, they have focused much of their marketing efforts on in-person interactions that started with a cold call or piece of direct mail. Of course, many of those activities are currently on hold. And without in-person meetings and events to connect with prospects and reconnect with clients, advisors are scrambling to find digital alternatives that work for them.
These circumstances have already forced many advisors to pivot to new strategies for sales and retention. In fact, since the pandemic, there has been a 50% increase in the use of digital marketing among financial advisors.
How Does Digital Marketing Help Financial Advisors Adapt to the New Normal?
Financial advisors are eager to capitalize on the increased demand for their services during the pandemic. Digital marketing tactics offer precisely that, with a promising ROI to boot. Plus, digital tools can help financial advisors maintain connections with their existing clients as the pandemic continues on for the foreseeable future.
Here’s what advisors stand to gain from digital marketing during COVID-19:
Smarter Marketing Strategies
Financial advisors are discovering that digital marketing provides significantly more sophisticated targeting and tracking mechanisms than traditional marketing, for example, print advertising. Pinpoint the precise demographics that you want to reach with your content, rather than hoping your target audience sees your print advertisement. Watch prospects move all the way through the sales funnel and nurture their progress as they evolve into clients.
Digital marketing methods typically have more potential for campaign tracking than traditional advertising. Data related to exposure, engagement, and lead generation can, with the right tools, be available with the click of a button. Experiment with different marketing methods and then use cold, hard data to fine-tune your methods into a fully optimized strategy.
Plus, a fully optimized strategy means a more cost-effective strategy. Put your marketing dollars where they produce the best results and monitor performance to make sure you are producing the results you expect.
A method of social selling in the time of six feet apart
Building trust can be an indispensable tool when selling a service as high stakes as handling other people’s money. That’s why many financial advisors have relied on social selling methods like invite-only lunches and evening soirees to help create new business opportunities. Those face-to-face moments can help humanize a business and set it apart from its competitors
Social media, when used as part of a digital marketing strategy, can offer a similarly humanizing experience to prospects and clients alike. Reassure clients that they’ll have continued access to you by expanding your online presence.
At the same time, help prospective clients get to know the people behind the business. Nowadays, consumers conduct a hefty amount of research before even contacting a business to inquire about a product or service. Help them get to know the business as much as possible. The more familiar it becomes, the more likely they are to request online interviews..
Stronger bonds with existing clients
If your clients are anything like the rest of America, they’re spooked. This year, the stock market has exhibited a performance worthy of Six Flags. That, coupled with threats of the greatest recession the nation has seen, has investors, retirees, and soon-to-be retirees in a panic.
That’s why clients need to hear from their advisors more than ever. Yet, most firms’ pre-COVID communication strategies are insufficient right now. Two phone conferences per year aren’t going to cut it for clients anymore.
Financial advisors are likely to find that - pandemic or no pandemic - this transition to increased digital communication was bound to happen. We’ve entered an era of constant and instantaneous communication through the availability of texts, direct messages on social media, client service chatbots, and more. Investor expectations have shifted, and financial advisors need to be ready to adapt - during COVID and beyond.
Personalized attention both inside and outside of the office
Many firms are used to providing personalized service during client meetings and phone calls. They know it can go a long way when it comes to strengthening relationships with clients. Now, financial advisors can continue that effort beyond the walls of an office.
The right digital tools make it possible to send regular, personalized communications, featuring content about what matters most to each individual client. Remind them that you’re working for them and creating a safety net for their hopes and dreams. Turn them away from the ledge of bad investment decisions before they even walk toward it.
Digital marketing opens the door to the use of newsletters, video conferencing, virtual speakers and events, webinars, video libraries, and more. Demonstrate to clients that they are still a priority. At the same time, regularly share content that positions your firm as an authority on the topics that matter most to your clients and prospects.
Conclusion
Since the pandemic, there has been a 50% increase in digital marketing among financial advisors. That’s because digital strategies offer the precise tools advisors need to capitalize on increasing demand for their services during the pandemic. And they do so while also providing the resources advisors need to maintain relationships with their existing clients.
However, what’s perhaps most important to recognize is that digital marketing is more than a temporary solution to a temporary normal. Digital marketing for financial advisors has a host of advantages - pandemic or no pandemic. That’s why advisors who use it will set themselves apart from their competitors even after we all go back to hugging one another and crowding restaurants.
