Financial Advisors Services is a competitive and regulated industry. The cost per customer acquisition is high, and encouraging customers will continue to be challenging with more competitors and alternative solutions for clients. Financial advisor marketing must continue to tweak their marketing strategies to align with their customers’ motivations to achieve their financial goals.
Growing and maintaining your clientele will NOT get any easier in the future. Based on the U.S. Bureau of Labor Statistics, employment of personal financial advisors is projected to grow 13 percent from 2022 to 2032, much faster than the average for all occupations. About 25,600 openings for personal financial advisors are projected each year, on average, over the decade. Many of those openings are expected to result from replacing workers who transfer to different occupations or who exit the labor force, such as via retirement.
Here are the financial advisors marketing strategies that financial advisory firms should be paying attention to:
Personalization and Customer Experience for Financial Advice
Tailoring marketing efforts to individual customer preferences and behaviors was already crucial. Your ideal client will need different financial advice depending on their life stage or motivation. For example, a recent grad will need advice for early-stage retirement planning.
Advanced analytics, AI, and machine learning will be used to create personalized experiences. It includes offering relevant products such as estate planning and enhancing customer journeys. We see analytics and AI being used with dynamic content and paid advertising campaigns.
Video Marketing and Webinars to Convert Prospects
Video content continued to gain traction. Financial advisors will continue to use videos for client education, market updates, and hosting webinars to engage with both existing and prospective clients.
91% of consumers want to see more online videos from brands. (HubSpot)
Financial professionals can use seminar footage for video marketing to attract potential clients. This allows you to use traditional marketing tactics and transition to digital marketing to connect with prospects outside of your geographic area but still in your niche.
Client-Centric Approach and Relationship Building for a Profitable Future
Financial Planners are prioritizing personalized client experiences by leveraging technology for tailored communication and services. Building and nurturing client relationships through regular communication, education, and personalized advice remained crucial.
You'll hear the phrase, omnichannel marketing associated with a client-centric approach. Smart Insights defines it as "Omnichannel means planning and optimizing always-on and campaign-focused marketing communications tools across different customer lifecycle touchpoints to maximize leads and sales - all the while delivering a seamless customer experience to encourage customer loyalty"
It's a wide range of marketing tactics such as search engine optimization and a lot more. The bottom line is a better user experience, increased brand awareness for your types of financial services, and increased revenues.
Utilization of CRM and Marketing Automation For Better Results
Customer Relationship Management (CRM) systems, sales automation, and marketing automation tools were being used to streamline client communications, manage leads, and personalize interactions. Automated processes freed up time for advisors to focus on high-value activities.
Marketers who use a CRM are 128% more likely to say their marketing strategy this year was very effective compared to those who don't. (HubSpot Blog Marketing Trends Report, 2024)
CRM systems play a pivotal role in helping financial advisors streamline operations, improve client relationships, segment clients and ultimately grow your business by delivering more personalized and efficient services.
For example, wealth managers can keep track of important deadlines, appointments, and tasks related to client servicing. This ensures that no critical tasks or client interactions are missed.
There are several options such as HubSpot, Wealthbox, Salesforce, and Redtail.
Focus on Niche Markets and Specialized Services to Stand Out
Advisors were identifying and targeting specific niche markets or specialized services to differentiate themselves in a competitive landscape and wealth transfer. According to wealth management firm Cerulli Associates, some $53 trillion will be passed down from boomers to their Gen X, millennial, and Gen Z heirs, as well as to charities.
There are some options to focus on when you consider niche, services, wealth transfer, and your firm area of expertise. For example, divorce financial planning for women and wealth management for physicians.
Firms specializing in divorce financial planning assist individuals in navigating the financial complexities of divorce. They help with asset division, alimony, child support, and long-term financial planning post-divorce.
Financial consultants might specialize in serving healthcare professionals, such as doctors, dentists, or veterinarians, who often have unique financial needs due to their specific career paths, high earning potential, and complex compensation structures.
Put a Marketing Plan in Place to Take Advantage of the Trends
The financial advisor industry is constantly evolving and becoming more competitive. With the projected growth in employment and the rise of alternative solutions for clients, it will only become more challenging to attract and retain customers. However, by understanding your customers' motivations and utilizing effective marketing strategies such as personalization and video marketing, you can set yourself apart from the competition. Remember to focus on niche markets and use CRM and marketing automation to better connect with your target audience.
By taking these steps now, you can position yourself for success in the future. So don't wait any longer - put a comprehensive marketing plan in place that incorporates these trends and techniques to effectively grow your clientele. As a trusted financial advisor, it's up to you to stay ahead of the game and provide your clients with personalized, client-centric services that will help them achieve their financial goals. The time to act is now so go out there and make an impact!
