Many years ago, I lived in Boston on a meager salary. Every workday, I would jump into my car and snake through the city, finally arriving at the office some 80 minutes later.
But on special days, I’d treat myself to the toll road. Straight, no stoplights, no dodging pedestrians, and smooth 70 MPH sailing. My commute time was cut in half. Even though it hurt to spend $2.25, I’d look forward to it.
I soon got a job that paid well enough, and I could afford the daily transaction. After the toll road became part of my normal daily commute, I couldn’t fathom the idea of going back to the old snake labyrinth. The idea of spending twice as long in the car with all the stopping, going, and congestion seemed—well, crazy.
Paying the toll
No one likes to pay the toll. It’s like a little paper cut, it won’t kill you, but you don’t like it.
I think about it a lot when reviewing my company’s expense reports. For items I know we need, of course, they’re non-negotiable: lease, phone, and internet, among others. But then I see other expenses and think, do we need these?
Some advisors feel the same way about marketing. What are we paying for and do we need it?
When we begin a new advisor conversation, we ask:
- What marketing do you do today?
- How much do you invest in your marketing?
From that, we usually have a good base of information and can open a meaningful dialog. The responses range from:
- All my business is from referrals.
- I do email campaigns, digital ads, blog articles, social media, events, and more.
We’ve heard the gamut of replies and many are amazing, to say the least,
For instance, “How much do you invest in marketing?”
Responses range from zero dollars to millions per year (yes, some enterprise financial services companies invest millions per year.)
For the companies with a defined marketing budget, the next portion of the conversation is a little more delicate. We ask them how their business has grown since implementing their marketing campaigns? The reason it’s more sensitive is simply that we believe that all marketing works.
Think of it like this, prior to purposeful marketing, what percentage did your total business grow per year?
Let’s say your firm invests $5,000 per year in marketing and your total business grows by 20 percent.
Do you think your marketing efforts helped? If so, what do you think were the driving forces behind the success? Look at year-over-year growth and factor in marketing investments to learn your total marketing ROI.
A recent study found that RIAs planned to spend more on marketing in 2018, as they consider it the No. 1 way to drive growth. Additionally, a different survey found that in 2017, 46 percent of firms created a documented marketing plan and 49 percent had a defined marketing budget. More and more advisory firms are realizing the benefits of investing in marketing.
Fast Pass
Yes, while it does sting a little to pay the toll, most people realize that it’s a lot better than sitting still in traffic. Same for marketing; the initial investment or shift to a monthly subscription may seem daunting, but after you take the plunge, you’ll wonder how and why you ever went without it.
Marketing is an investment in your business that will lead to a reduction in the time it takes to acquire more plans, while building your professional reputation as a plan advisor to help generate more inbound referrals. Purposeful marketing is the EZ Pass for your retirement plan practice, and puts you in the fast lane for total business success.
About 401(k) Marketing
Our clients are the best professional retirement plan advisors, TPAs, and industry partners in the business. They care deeply about saving America’s retirement future. We are proud to share their voices through industry writings, professionally-designed marketing materials (including websites), and expert content collateral. We lend support by promoting businesses through on-going awareness campaigns. 401(k) Marketing is based in San Diego, CA.
Check us out at www.401k-marketing.com.
Rebecca Hourihan is Chief Marketing Officer with San Diego-based 401(k) Marketing, a modern marketing agency for the retirement plan industry. The company supports clients through custom engagements, content marketing campaigns, sales material innovations, thought-leadership consulting, interactive workshops and speaking events. Its mission is to empower the retirement plan industry with high-quality marketing, ultimately inspiring Americans to become financially prepared for their future. Rebecca also hosts The 401(k) Marketing Podcast.
