By John Capuano, Co-Founder of Simplicity Lone Beacon
Almost 50% of investors with $500K or more considered switching financial advisors last year, according to a Nasdaq study. And nearly 30% of them switched in the past three years. This is 𝘁𝘄𝗶𝗰𝗲 the attrition rate of investors with less than $500K.
The fact is that investors are getting more messages from more wealth management firms than they ever had in the past, and they have access to more information. This makes running a firm or institution complicated. And it puts the industry in a constant sales cycle. And not just for new clients, but to keep your current clients. Here are two things from a marketer’s point of view that you should put at the top of your list but are too often underserved.
#𝟭: 𝗛𝗮𝘃𝗲 𝗮𝗻 𝗜𝗿𝗿𝗲𝗳𝘂𝘁𝗮𝗯𝗹𝗲 𝗮𝗻𝗱 𝗔𝘂𝘁𝗵𝗲𝗻𝘁𝗶𝗰 𝗕𝗿𝗮𝗻𝗱. It’s not easy in an ultra-commoditized industry but it’s done all the time. Everyone in your organization should know your brand identity by heart, and only then can it get transferred to your clients. Owning a brand isn’t just for huge corporations…it takes just one person to build a brand.
#𝟮: 𝗛𝗮𝘃𝗲 𝗮 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗣𝗿𝗲𝘀𝗲𝗻𝗰𝗲. Make a commitment to have a presence on social media – 𝘁𝗵𝗶𝘀 𝗶𝘀 𝗻𝗼𝘁 𝗮𝗻 𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝗳 𝘆𝗼𝘂’𝗿𝗲 𝗿𝘂𝗻𝗻𝗶𝗻𝗴 𝗮 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀. Your clients are on social media…don’t hand that ground over to competitors. And consistently market to your database. You own a list of clients and prospects…that’s a precious commodity. Nurture them en masse with consistent messages at least once a week.
How prepared are you to defend your ground against so much competition and an unprecedented amount of advisory attrition? It’s easy for clients to get courted. And with about 50% considering some kind of advisory change, it’s a good idea to think about retention.
About the Author: John grew up in Schenectady, NY & received a scholarship to Norwich Academy. He began his broadcast management career at WOR, learning spoken word marketing from the best in the business with a specialty in financial and long form. John managed broadcast sales for some of the best known sports teams in the world, at the most legendary stations. However his true passion is in the world of direct response advertising to baby boomers and their parents. In this space he has worked with some of the best brands in America. John lives in Boston with his wife, Melissa who is also a broadcast executive, and French Bulldogs Lou and Sal.
