Editor's note: This blog article was originally published on December 9, 2015 and has been completely revamped and updated for accuracy and comprehensiveness.
You are already a virtual financial advisor when you use the Internet, telephone, and Zoom to interact with your more remote clients. You may have become a virtual financial advisor when there was substantial distance between you and the leads, prospects, or clients - that could be 25 miles or 100 miles from your office. You don’t want to waste time driving to the investor’s location and the investor does not want to take the time to drive to your location.
Kick-off 2024 with the right financial advisor marketing strategy! Connect with Paladin Digital Marketing today!
Your alternative is virtual communications and it pays to be good at it.
Paladin: Very few financial advisors say they are using virtual marketing tactics to win new relationships - but they would like to if they thought it worked. Their current use of virtual communications is to serve current clients. And many of those current clients are virtual due to relocation.
The question that we address in this article is how can financial advisors win more clients using virtual marketing business practices.
Do investors have preferences?
We would have to answer this question with a resounding yes. Based on Paladin’s research over the past 20 years, 62% of investors have expressed a strong preference for local financial advisors they can meet face to face. This makes a certain amount of sense when you consider the personal relationships that many investors have with their financial advisors. Is this advisor someone I would like and respect? This also creates a substantial competitive advantage for the local financial advisors who are willing to meet face-to-face.
Paladin: The 62% is even higher for investors with substantial assets. They prefer local financial advisors and other types of professionals (CPAs, attorneys).
If we dive a little deeper into why this is true, a high percentage of investors are making subjective decisions when they select financial advisors. And, a significant part of the subjectivity is based on the personalities and communication skills of the financial advisors. And, both aspects of this sales process are enhanced when there is face-to-face contact during the marketing phase of the relationship.
Once the investors have made their financial advisor selection decisions and a level of trust has been established (very important), investors may be increasingly comfortable with virtual relationships, in particular with the use of Zoom. It is simply a more efficient way to meet than traditional relationships. In particular when you compare it to driving to meetings in large congested cities.
Paladin: Virtual communications flourished during the Covid years.
Servicing virtual clients, when there is an existing relationship, is not the challenge. The real challenges are marketing to people you don’t know and being competitive with other financial advisors - both local and virtual.
Can you overcome the face-to-face bias and convince investors to select you without meeting you in person?
What is the difference between leads and prospects?
The first step is distinguishing between leads and prospects. This can have a major impact on your marketing communications strategy.
A lead means you have the investors’ contact information, but there has not been any contact. Chances are the lead submitted their contact information on a landing page on your website.
Two types of leads matter. The best financial advisor leads want to schedule initial interviews to determine if you are what they are looking for. You also want to screen the investors to determine if they meet your requirements - for example your minimum asset requirement.
A lead becomes a prospect when you have communicated and established mutual interest.
A second type of lead is seeking information. It could be information about your firm or a financial topic. You will want to contact the investor to determine if you can convert a need for information into an interview. If not, these investors will end up on your drip list until they are ready to start interviewing financial advisors.
Should you give leads and prospects a choice?
It is always a good idea to provide leads and prospects with choices. For example, most of your communications with leads will be by phone or Zoom. You and the lead don’t want to waste time if there is no mutual interest.
On the other hand, if a lead turns into a qualified prospect, this is a good time to determine the method of communication for the interview that works best for you and the investor.
Chances are you and the investor will have a threshold for driving distance. Who is doing the driving may also be an issue. You may be willing to drive further than the investors. However, the investors may be retirees who do not want to meet in their homes, so the only alternative is your office or a neutral location (Starbucks).
Paladin: Choices should be considered a strategic marketing tactic.
What are the three types of communication processes for prospects and clients?
At the risk of stating the obvious, three types of communication are used by most financial advisors, but the actual type may selected by the investor. The method of communication has to work for both parties
When do you make this determination? Once you know the lead fits your requirements you could offer investors three methods of communication for the next steps in their selection processes: Face to face, telephone, or Zoom.
The initial contact should be by phone to avoid wasting time if the investor does not meet your requirements. That is also true for the investor. A convenient, easy type of communication is best at this stage. Do you fit what the investor is looking for? Does the investor fit what you are looking for?
Based on what you know at this point, including the investor’s location, you offer them a choice for the next step’s method of communication. Then be prepared to compete based on the method of communication that is selected by the investor.
Paladin: The Internet is a game changer. The investor may already know a lot about your firm.
Millennials versus Baby Boomers
Many financial advisors have developed marketing practices that assume the 78 million baby boomers are less savvy in using technology compared to their children and grandchildren. We would say that is no longer true based on Paladin’s interaction with investors for the past 20 years.
For example, the most popular classes at retirement communities can be the use of the Internet, search engines, and social media to find the information, services, and products they are seeking. Several digital services can also be interactive.
This is particularly true for baby boomers who have the amounts of assets that many financial advisors prefer to work with. And one of the most successful marketing strategies for these advisors is retirement seminars with an emphasis on digital applications.
Financial Advisor Websites
Virtual marketing starts in the search engines and moves quickly to your website where investors can learn more about you. This can make your website an important part of your digital marketing strategy that lays the foundation for virtual relationships. After all, the investor more than likely found you on the Internet or used the Internet to learn more about you. This makes them much more receptive to a virtual relationship.
Paladin: Your financial advisor website is the electronic entrance to your business. You have seconds to create a positive first impression and 2-3 minutes to convert visitors into leads.
It is a powerful and complex form of marketing because your website has to:
- Deliver the right information about you and your firm
- Create high levels of trust and credibility
- Convert visitors into leads
Traditional and Virtual Marketing Practices
Based on recent Paladin Digital Marketing research, 72% of advisors said they wanted to provide traditional and virtual communication alternatives to their clients based on types of service, locations, asset amounts, and revenue potential.
However, only 23% of the advisors said they had an existing plan for dealing with the marketing challenges that impact their digital marketing business practices:
- Making their websites hubs for new leads
- Using traditional and virtual marketing practices to convert leads into prospects
- Giving investors choices for methods of communication
- Building sales strategies for each method of communication
- Making sure the strategies are competitive with local advisors
Paladin: Make sure your website conveys the type of information that benefits investors who are seeking financial advisors.
About Paladin
Paladin is a digital marketing agency that has worked exclusively with financial advisors since its founding in 2003. Paladin’s team of digital marketing professionals has more than 100 years of collective financial industry experience marketing our clients' services to individuals, families, and businesses. Plus, our team has decades of experience providing digital marketing services to financial advisors. Our clients range from start-ups to firms with billions of dollars of AUM. We are a full service agency that provides website, SEO, SEM, Video, and Fractional CMO services. Want more information about our digital marketing services for financial advisors? Email: Info@PaladinDigitalMarketing.com to schedule an introductory call. We protect your privacy.
