In the rapidly evolving financial landscape, independent RIAs hold a distinct advantage due to their agility. By embracing specific strategies, advisors in the world of independence can drive substantial growth.
At the core of the RIA model is the client, so any growth strategy must prioritize client needs. This approach benefits both clients and the advisory teams serving them.
Taking this into account, here are a few strategies that can help RIAs effectively drive growth and expand their footprint.
1. Hire a digital marketing specialist.
The simplest strategies can sometimes yield the most significant results, particularly for RIAs focusing on digital marketing. Yet, a recent study indicates that many financial advisory firms allocate less than 1% to 2% of their revenue to marketing.
Despite marketing's growing importance, many advisors still rely on word of mouth. Hiring a digital marketing specialist can be a game changer for these firms, while inaction only guarantees missed opportunities.
A recent survey from Broadridge indicates that advisors are struggling more than ever with marketing due to limited time and expertise. Yet, many are finding success by adopting a personalized content approach and leveraging next-generation technologies like artificial intelligence to engage prospective and current clients.
The survey also found that 70% of U.S. advisors with a defined marketing strategy saw an increase in inbound requests in the past year, compared to just 44% of those without one. The translation here is this: Hiring a digital marketing specialist or allocating a budget for digital marketing efforts is one of the fastest ways for advisors to scale.
2. Invest in a diverse team.
Increasingly, clients in wealth management span generations. Advisory teams should reflect this breadth of experience and perspective. Investing in talent isn't just about filling positions; it's about cultivating a team that can connect with and understand the distinct needs of each client segment.
To achieve this, RIAs should prioritize a mix of seasoned professionals and emerging talent. Experienced advisors bring invaluable insights and industry wisdom, while next-gen professionals infuse fresh ideas and a tech-savvy approach to client engagement. This combination not only enhances client relationships but also positions a firm for long-term success.
