A rapidly rising number of investors are turning to the Internet to find and research financial advisors. That’s because they can maintain their anonymity while they conduct their searches for financial advisors and the information that validates their expertise and trustworthiness.
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An even bigger reason can be their ultimate control over the process. They get to pick the financial advisors they eventually select for introductory interviews. The number of advisors they contact will vary by investor, but a common number is four when their goal is to eventually select one.
Our surveys show 82% of investors will visit financial advisor websites and 64% will search advisors' names on Google seeking information about potential advisors. In the digital age, it is crystal clear that an online presence is not just an option, it is a critical marketing element for financial advisors of all sizes.
This also means financial advisor websites and their online presence must be competitive with other advisors that are being researched by investors. This can be a major challenge for online financial advisor information that tends to look a lot alike (top 5). For example, a high percentage of financial advisor websites say they are:
- Planning and investment experts
- Financial fiduciaries
- Independent financial professionals
- Compensated with fees
- Specialists that provide personalized services
This makes differentiation very difficult for investors who may be seeking particular types of financial advisors.
There are really only two types of investors seeking financial advisors on the Internet. One is investors who are seeking their first financial advisors. The other is investors who are replacing financial advisors. In both cases, they want to limit their risk of selecting the wrong advisors and are not exactly sure how to select the best financial advisors (an excellent eBook topic).
Here's what investors are looking for when they navigate the web in search of financial advisors.
Investors are seeking credible experts they can trust
Investors are primarily seeking someone they can trust with their financial future. This begins with a professional, well-maintained website that provides clear, easy-to-find information about your qualifications, experience, and the regulatory body under which you operate.
Testimonials and case studies can be effective tools for building trust, showing prospective clients that you have successfully managed the financial needs of others.
Investors are seeking advisors who work with clients like themselves.
Investors want to know if you have experience working with clients whose financial situations resemble their own. They are more likely to engage with advisors who understand their specific demographic and financial challenges.
Be sure to include details about the types of clients you typically serve, whether it’s retirees, high-net-worth individuals, families, or small business owners.
Investors prefer advisors who provide comprehensive services.
Prospective clients are not just looking for investment advice; they want to know if you offer a comprehensive suite of services that cover all aspects of their financial interests. Make sure your website clearly lists all the services you provide, such as retirement planning, risk management, tax planning, and advice on Social Security.
Detailed descriptions of each service can help investors understand how you can assist them in various aspects of their financial lives.
Investors prefer financial advisors who practice transparency.
Transparency about fees is crucial in establishing trust. Investors want to know how you are compensated for your services. Whether you operate on a fee-only, commission-based, or a hybrid compensation model, make this information readily accessible and easy to understand.
It is fair to say that most financial advisors choose to withhold important information from financial advisors. For example, very few publish their:
- Fee schedules
- Potential layers of fees
- Asset Under Management
- Number of clients
- Average account sizes
- Retention rates
- Investment decision making processes
Investors prefer financial advisors who provide educational content.
What better way to prove you are a financial expert? Offering educational resources on your website can set you apart as an expert and an advisor who cares about clients’ understanding of financial issues. This could be in the form of blog posts, articles, newsletters, and FAQs. Educational content not only helps in SEO but also establishes your authority in the financial field, helping clients feel more confident in your advice.
Investors prefer financial advisors who make contact easy.
Your website should make it easy for potential clients to get in touch with you. This includes having a simple, straightforward contact form, your phone number, email address, and perhaps an online scheduling tool for initial consultations. The easier you make it for investors to reach you, the more likely they are to engage your services.
Investors prefer financial advisors who can provide differentiating characteristics.
Investors often prefer financial advisors who can clearly differentiate themselves from their competitors because these unique qualities can signal a more personalized and potentially more effective advisory service.
In an industry saturated with professionals offering similar services, advisors who stand out in specific ways are more likely to attract clients whose needs align closely with these distinguishing features.
Differentiation can be based on various factors, including unique investment strategies, specialized knowledge in a particular sector, superior client service, or innovative use of technology. For instance, an advisor specializing in sustainable investments or possessing an advanced understanding of tax strategies might appeal more to clients with specific interests or needs.
This sort of specialization not only helps in attracting the right clients but also sets a foundation for more tailored and effective financial advice.
Moreover, in the digital age, the initial screening of potential advisors often happens online, making it crucial for financial advisors to showcase their differentiating characteristics prominently on their websites. A well-designed website that clearly communicates what sets the advisor apart can be a decisive factor in an investor's selection process.
If investors can quickly ascertain how an advisor's unique approach aligns with their financial goals, they are more likely to consider engaging their services. Therefore, advisors should leverage their online presence to highlight their unique qualifications, testimonials, case studies, and any accolades or certifications that might enhance their credibility.
This not only helps in building trust but also significantly increases the chances of attracting clients who are looking for exactly what the advisor is offering.
Differentiation also helps financial advisors by not only attracting more suitable clients but also by fostering longer-term relationships. When clients feel that their financial advisor truly understands their unique needs and has the specific expertise to manage their financial situations, they are more likely to remain engaged for the long haul. This can lead to increased client retention and higher satisfaction rates, which are crucial for the growth and sustainability of a financial advisory practice. In essence, by effectively differentiating themselves, advisors not only stand out in a crowded market but also build a client base that is more loyal and satisfied, ultimately contributing to the success and stability of their practice.
Conclusions
By focusing on these key areas, you can better align your online presence with the needs and expectations of prospective clients, thereby increasing the likelihood of attracting and retaining them as clients. Remember, your website and online footprint often make your first impressions on potential clients, so it’s imperative to continuously refine and update your digital presence.
