A new survey found that that 77% of advisors have no defined marketing strategy and that only 49% of advisors are confident that they will meet their practice growth goals within the next 12 months.
However, 75% of advisors with a defined marketing strategy are confident they will meet their practice growth goals over the next 12 months, compared to only 41% of advisors without a defined marketing strategy, according to Broadridge Financial Solutions.
Ninety-one percent of advisors report that developing a digital marketing strategy is a challenge, and 86% of advisors report that it is challenging to find the time for marketing efforts.
Additionally, 86% find it challenging to select the appropriate marketing technology tools to leverage.
“As investors continue to look for more personalized services in all aspects of their lives, it is important that financial advisors create a defined marketing strategy to ensure they are connecting with their prospects in a manner consistent with their preferences, for example, which social media channel or the time of day,” Michael Alexander, President, Wealth Management, Broadridge Financial Solutions, said in a statement. “Those advisors that are taking the time to define their target audience, understand where they should share relevant content and how to nurture leads through digital channels, have proven better equipped to engage clients and drive a higher return on marketing investment.”
Solo advisors and independent broker-dealers report finding various marketing elements more challenging than advisor teams and RIAs do.
Capturing digital leads becomes paramount
Marketing spends decreased from $19,194 in 2019 to $12,939 in 2020 due to the economic impact of the pandemic. Twenty-three percent of financial advisors decreased their marketing spend during the pandemic, and 22% of advisors maintained the same marketing budget but reallocated their spending during the pandemic.
Ninety-one percent of advisors agree that digital marketing has taken on greater importance as a result of the pandemic.
While marketing spends decreased year over year, advisors plan to shift the remaining future spend into digital channels to meet clients and prospects wherever they may be.
As advisors turn to social media to connect with prospects, the study finds that 37% of advisors have obtained a lead that became a client through social media.
Of advisors who obtained a lead through social media, 68% reported obtaining a lead on LinkedIn, followed by Facebook at 58%. However, more than six in 10 advisors have never obtained a lead that became a client through social media.
Advisors are also struggling to convert leads to clients through their websites and landing pages. Forty-one percent of advisors report that they generate less than five leads per month through their website, and 34% do not generate any leads through their website.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
