By Kasey Dean, Simplicity Lone Beacon’s Senior Director of Accounts.
According to a recent 2024 digital ad spending study by EMARKETER, financial services saw the 2nd largest growth in digital ad spending compared to 2023 (~18% growth). The findings in this study plus the results of our recent advisor case study show that digital is the future for scaling financial advisor’s growth. Recently we performed an in-depth case study of a financial advisor’s closes by source from 2023 and 2024. We learned 3 key insights from this case study which show the compounding success financial advisors see when consistently investing in digital. [1]
3 Key Insights from the 2024 Lead Flow Analysis
- Referrals Increased Year-Over-Year
- ROI on Digital Event Marketing Skyrocketed
- Google Resulted in Incremental Closes
Now, you might wonder how this advisor achieved these results. The answer is this: they succeeded by committing to a consistent budget for digital marketing platforms and prioritizing their sales infrastructure internally.
How Digital Can Increase Existing Marketing ROI
The results display how financial advisors can generate substantial returns by reallocating even a small portion of their marketing budget to digital efforts. In 2024, direct mail campaigns for this client brought in a 74% ROI for events, while digital marketing generated a 548% ROI for events on only a $1,000-per-month budget. This stark contrast demonstrates that digital strategies not only enhance lead generation but can also offer a higher return on investment when remaining committed to their strategy.
For financial advisors running consistent events, reallocating a portion of your monthly budget from direct mail to digital marketing can help reach prospects where they’re at on their terms and foster stronger connections. . Not only that, but the year-over-year referral growth shows that keeping your firm in front of clients on the platforms they use can lead to creating more and better brand advocates who are more likely to grow your referral business year-over-year.
Why Building a Strong Sales Infrastructure Is Important
Success with digital isn’t just about spending money. This case also underscores the importance of combining digital investments with a robust sales infrastructure. This advisor has remained committed to building their sales system to follow up with leads, track performance, and engage with prospects and clients.
So, how do you replicate this strategy for your advisory? It can be broken down into 2 simple parts: people and process. Hiring or training the right people with the skills and fortitude to call prospects not just once but multiple times over weeks of time. While we wish it could be done in a snap, lead prospecting takes time and effort. And results don’t come immediately.
The second part to this equation is having a documented and repeatable process that can be tracked in your Customer Relationship Management (CRM) system. Remember, a CRM is just a tool or product to help guide you and your team (just like an annuity or investment option is for your prospects), but your internal process will set up your team for success, which can be felt by your prospects and clients, ultimately leading to them trusting your advice over the other 4-5 firms they may be meeting with. Without proper sales tracking, even the most well-funded marketing campaigns can fall short of their potential.
Actionable Steps for Financial Advisors
These results showed tremendous success for this advisor, but how can you apply these strategies to your advisory today? There are several immediate actions based on the successes revealed in this case study:
- Commit to A Consistent Annual Digital Plan: It takes time to get enough 1st party data to truly see the impact on your bottom line, but the results will compound the more consistent you remain in executing your strategy… and your clients will notice.
- Consider Re-Allocating a portion of your event marketing budget to digital: Shifting even a small percentage from direct mail to digital campaigns can significantly boost your return on investment. In addition, if you are spending money on radio or events, you need to consider how those channels can complement each other by incorporating consistent Google, Facebook, and LinkedIn budgets.
- Prioritize building sales infrastructure: Two key components to successful sales infrastructure are people and process, both equally important to track and measure success. Without that, you’re flying blind so you and your team will have trouble committing to timely follow-ups.
Embrace the Power of Digital
This advisory’s lead flow data shows that even a modest digital marketing budget can yield impressive results when combined with a strong sales process. Financial advisors who embrace digital strategies and commit to regular follow-ups will see greater returns on their marketing investments, expanded reach to prospects, and stronger client engagement. All this not only helps gain clients but helps retain them and transform them into your best salespeople—referral generators.
[1] EMARKETER, “US Ad Spending by Industry 2024,” September, 2024.
About the Author: Kasey joined Simplicity Lone Beacon from the sportswear industry where she was a marketing manager overseeing the strategy, content creation, execution, and analysis for New Balance Athletics’ first-ever customer rewards program. She has also managed a million-dollar media budget, creating content and measuring performance for paid and organic marketing campaigns. Kasey graduated from Brandeis University with a double major in Business & American Studies, where she was also a two-year captain of the Varsity Women’s Basketball team. In her free time Kasey enjoys being active and traveling as much as possible.
