Wealth Management Marketing: The Winning Recipe for Forward-Thinking Wealth Management Firms
Wealth management firms have been behind the curve in terms of adopting digital marketing strategies, compared with firms in other agencies. According to Forrester Research, “Digital teams at financial services firms have been slower than digital teams in other industries to adopt game mechanics. But the success of game mechanics in sectors like airlines and education has encouraged digital teams in banks, wealth management firms, and insurance companies to adopt these tactics to encourage digital sales and service use.”
But it’s not just game mechanics that stand to disrupt an otherwise traditional industry. bcg.perspectives reports that digital technologies are transforming nearly every aspect of both the personal and professional lives of many people. Wealth management clients don’t differ in this regard, yet wealth management firms have been slow to adopt digital technologies. With digital gaining ground in every facet of modern life, forward-thinking wealth management firms are leading the pack through digital marketing strategies that capture and engage buyers in the right place at the right time. Here’s a look at the winning digital marketing strategies for wealth management success.
1. Focus on Relationship Management
You might think that marketing is about customer acquisition, not retention, but it’s just as important to continue nurturing relationships with existing clients as it is to acquire new clients. In fact, it generally costs much more to acquire a new customer than it does to retain an existing client. That’s because when you’re starting from scratch, you don’t have the benefit of an established, trusting relationship that makes it easy for an existing client to make another purchase, choose to stay with your company, or even increase their spend with your company.
That’s why there’s an increase in customer loyalty programs and other customer retention efforts that focus on nurturing relationships and securing ongoing business from existing clientele, particularly in industries like wealth management that require an ongoing commitment between client and firm.
2. Big Data and Analytics Drives Relationships with New and Existing Clients
“Big data and advanced analytics are on the cusp of transforming the WM industry, with new ways to engage with new clients, manage client relationships and manage risks,” according to Deloitte’s 10 Disruptive Trends in Wealth Management report. Also changing the game in the wealth management industry is the “re-wired investor,” which includes a new generation of investors encompassing both Gen X and Gen Y, as well as baby boomers who have been influenced by their younger peers, according to the Deloitte report.
What’s different about the re-wired investor is the way they expect to interact with advisors. Instead of being treated as just one member of a given market segment, the re-wired investor demands being treated as a unique individual. Enter Big Data and analytics, critical for achieving this level of personalization.
3. Client Advisory Boards Offer Real Insights into the Minds of Target Clientele
While it’s not a new concept, the client advisory board is a proven strategy that both facilitates strengthened relationships with key clients and provides meaningful insights into the minds of a firm’s target clientele. A well-rounded client advisory board consisting of valued clients representing various facets of a firm’s overall target market is critical for gaining visibility into the market’s needs, wants, and demands.
Client advisory boards can be utilized for a solitary purpose, such as discussing and gaining feedback on the firm’s plans for growth, or as an ongoing initiative that provides clients with a voice in strategic decision-making. These efforts not only strengthen client relationships but enable the steering of modern wealth management firms in the precise direction for maintaining and strengthening client loyalty.
4. Content Rules for Providing Self-Serve Research and Advice
Armed with Big Data and analytics, wealth management firms can provide a custom experience tailored to every individual client. But it’s also imperative to give clients a sense of ownership over their portfolios, with a 360-degree view of their assets as well as easy access to self-serve research and advice. This research and advice comes in the form of content, provided through a knowledge base or resource center that clients can access at any time to get the insights and latest research they need to either inform their own decisions or drive discussions with their personal wealth managers.
What’s more, the data that results from clients and prospective clients accessing and downloading specific content assets can provide deeper insights into the specific needs of each individual, enabling wealth managers to reach out with precise messaging that answers their most pertinent questions – without clients ever having to ask. It’s this level of personalized service that enables wealth management firms to lead the competition in the digital age.
While wealth management firms may be slightly behind the curve compared to other industries in terms of digital adoption, there’s a tremendous opportunity on the horizon for firms that embrace the power of digital to engage, inform, and influence customers. Big Data coupled with customer retention and efforts to empower clients to take a more active role in managing their wealth is the winning recipe for forward-thinking wealth management firms.