North American financial advisors are increasingly looking to next-generation technology such as generative AI to address their marketing challenges and meet the increased personalization expectations of prospective and current clients, according to Broadridge Financial Solutions' annual financial advisor marketing survey.
Research consultancy 8 Acre Perspective conducted surveys from Oct. 20 to Nov. 15 among 403 U.S. financial advisors, primarily across independent broker-dealer and RIA channels, and from Oct. 25 to Dec. 4 among 131 Canadian advisors, across mainly IBD and regional full-service brokerage channels.
Meaningful Communications Drive Growth
As investors expect a more high-touch experience from their advisors, the research showed that 68% of U.S. financial advisors who communicate at least quarterly with their clients are confident in meeting their practice goals, compared with 51% who communicate with clients annually or less frequently.
Similarly, 71% of U.S. advisors who personalize their content marketing are more confident in reaching their practice goals next year, compared with 62%, and 30% report being very confident in reaching practice goals, versus 18%.
The content personalizers are also likelier than the non-personalizers to do these things:
- Convert social media leads to clients: 45% vs. 34%
- Use generative AI: 50% vs. 38%
- Spend more time on marketing efforts: average 2.5 hours a week vs. 1.9 hours
- Have a defined marketing strategy: 32% vs. 10%
- Generate more website leads: average 3.3 leads per month vs. 1.9
Broadridge noted that an important part of an advisor's growth strategy is personalized educational content that forges deeper relationships and helps clients achieve their individual goals, but many advisors find challenges in developing and sharing personalized education.
Forty-nine percent of U.S. advisors who do not share educational content with clients said they are uncertain how best to do so, 46% said they do not have enough time, 44% thought their clients were uninterested and 34% had run into compliance issues.
At the same time, the study found that many advisors are leveraging innovative technology solutions to overcome these challenges. Fifty-six percent of Canadian advisors are currently using generative AI in digital marketing strategies, or plan to do so, compared with 43% of their U.S. counterparts.
Advisor AI Use and Perceptions
Generative AI has enabled advisors to more meaningfully engage with clients while lowering their operating costs, according to Broadridge. North American advisors use AI to generate personalized content, develop personalized marketing campaigns, automate administrative tasks and communications and segment clients and prospects.
Along with generative AI, advisors are also ramping up their investments in social media for digital marketing, with 57% of Canadians currently or planning to do so, compared with 43% of U.S. advisors. Broadridge said this is likely because Canadian advisors are placing more emphasis than U.S. advisors on attracting millennial and Generation Z clients.
Canadian advisors have also been more successful in converting social media leads to clients, with LinkedIn and Facebook being the top two social media platforms for lead conversions across North America.
