Consumers are bombarded with information. Communication via mail, email, text and social media was a constant stream prior to the pandemic, and the frequency has only escalated since 2020. That makes it even more challenging for financial advisors to cut through the chatter and develop robust client recruitment and engagement conversion programs. But that's only part of the problem. Many financial advisors are unable to nurture and engage potential prospects because they are not conducting any outreach.
Sobering statistics
Consider the following:
- Studies have shown that more than 50% of all business leads end up unused. Research from Inc. and Forbes magazines found that 71% of internet-generated leads go to waste. That's a lot of missed opportunities, especially for advisors who want to grow their business.
- A lack of regular and meaningful communication drives 81% of clients to leave their current financial advisor or insurance agent.
- 70% of widows move their accounts within nine months of their husbands passing.
- Only 2% of children remain with their parent's financial advisor.
Simpler solutions
Luke Acree, the President of ReminderMedia, says most financial advisors try to grow their business by purchasing lists or buying marketing campaigns. The lead generation consultant suggests an easier method is to cultivate the client database you already own. That's not to say you should eschew any marketing program; that's an integral part of the growth strategy.
He points to a statistic often shared by renowned communications and sales professional Dale Carnegie that 91% of customers will provide meaningful business referrals, but only 11% of business professionals ask for them. And Acree adds that financial advisors who utilize in-person seminars and workshops for lead generation often fail to nurture and engage prospective clients from the events.
How should a financial advisor fix this problem? Acree suggests becoming unforgettable.
Frequency
Consider how many times a week you should be engaging with clients. Then double it. That's closer to what marketers have identified as an optimal amount. Sounds like overkill? Consider how often you communicate with a close friend through phone calls, emails, text messages and social media. Each instance is a touchpoint and many marketing consultants suggest a minimum of 26 touchpoints every two weeks or about 200 a year.
The touchpoints don’t have to be long or exhaustive. It could be as simple as sharing an article or recognizing a birthday, holiday or other family milestone. The concept of frequency illusion — noticing all the red cars when you've bought one — can be advantageous to advisors who increase their touchpoints and spread them across communication channels.
Deliver impactful messages and avoid the "lottery marketing" approach of hoping to engage a consumer with the right message at the right time.
Personalization
Conduct a thorough assessment of your client database and assess the information in terms of family, occupation, recreation and dreams. This information can help drive touchpoints. Be a relationship-driven advisor, not a transactional one. Utilize a mix of education and lifestyle themes in your touchpoints.
Consider showcasing your accolades or sharing testimonials to create trust. The Securities and Exchange Commission's new marketing rule allows for the broader use of endorsements, but work with compliance officers to remain within accepted guidelines.
Automation
Two hundred touchpoints per client per year is a lot for an advisor to manage. Automate the process, but don't automate the client relationship.
Email marketing programs can create automated birthday, anniversary and holiday touchpoints. The remainder could be scheduled updates or financial tips on evergreen topics such as estate planning, risk tolerance or diversification.
Consider reaching out to five people in your database each day. At that pace, it's possible to connect with an entire client base in one to three months. Then make sure to ask for referrals. That's one way to ensure a nurturing and engaging marketing program.
The following was adapted from the Nurture & Engage session offered during White Glove's 2023 Virtual Summit. To access the full Virtual Summit Key Takeaways Guide, click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
White Glove
White Glove is an advisor-built, advisor-owned marketing services company dedicated to helping growth-minded financial professionals attract, connect, and engage with quality leads.
Read White Glove's Bio