Page 20 - Investment Advisor June 2023

InDuSTRY InSIGHTS

source of new business for advisory firms Two of the most important benefits ics. You can also create content, such as
continues to be referrals, and they’re under of an organic growth engine are that it a webcast or a blog post, that showcases
pressure as a reliable source of growth as increases income today and that it’s a your expertise in these areas.
partnering professionals like CPAs rapidly powerful valuation driver that firms get From there, promoting those assets on
enter the wealth business. Thus, tradition- credit for when they sell their entities. search engines, social channels, YouTube,
al referral activities are just not enough to So, beyond being a critical stabilizer to proactive emails and your website will
make up for client withdrawals being used keep firms sustainable, organic growth provide the stimulus to drive these high-
to fund retirement spending. has now become the most valuable mul- ly desirable prospects your way. These
When combined with a much more tiplier RIA firms can achieve. promotions and advertisements need to
volatile market climate, advisors find they have a clear “call to action” to engage
can no longer rely on steady market-fueled Hone your MessAGe with your content in the form of down-
windfalls every year to drive their growth When working on new growth strat- loadable guides, checklists, webcast invi-
and compensate for lost revenues tied to egies, it’s also a must to refine your tations and similar materials so that you
client turnover and asset decumulation. marketing efforts so you have a clear can gather their contact information and
definition of what your target market put them into your sales funnel.
tIMe to rev uP your enGInes is. This allows you to develop a precise A critical component to develop as
All of these trends are put- part of your organic
ting most RIA firms in a pre- A critical component to develop growth engine is a fol-
carious predicament that low-up process to reach
points to only one solution: as part of your organic growth out to leads quickly,
They must regain the mar- qualify them and close
keting muscles they once engine is a follow-up process to the business. Even the
had in their earlier, scrap- most powerful lead-
pier start-up days. reach out to leads quickly, qualify generation systems can’t
Plus, they have to replace the human-to-
embrace a key business pri- them and close the business. human interaction at the
ority: immediately re-learn final point of sale.
and re-invest in marketing their busi- marketing message for your value prop- Thus combining advisor education
nesses using the tools of today’s digital osition that will resonate with prospects. programs on how to use video with robust
age. As consumers rapidly seek out ser- While many firms fear they may miss online profiles is critical to cementing the
vice professionals online and through out on opportunities by becoming more deal. Prospects go online to confirm their
social media, advisors need to consider focused in their messaging, the real- purchase decision by researching advi-
new approaches to the ways they market ity is actually the opposite; a general, sors, reading reviews, checking out their
and sell their advisory offerings. high-level message does not create the content — just like they would when con-
Where should they start? Marketing same urgency to take action as one that sidering a new restaurant, hotel, doctor,
experts generally agree that the best is personalized and tailored to solving a lawyer, accountant or plumber.
first step is to build an “organic growth specific financial planning and invest- The good news is that the ecosystem
engine,” meaning an end-to-end capa- ment management need. that supports advisors is responding by
bility for sourcing optimal leads, nur- “Look-alike” marketing is a process creating new organic growth tools, tech-
turing them with personalized content, that you can employ to analyze your nologies, platforms and advisor coaching
and then closing these business deals existing client base to determine the programs that firms can leverage to regain
through proactive outreach. attributes and characteristics of your cur- their marketing swagger and remain rel-
Fortunately, million-dollar advertising rent top clients and then replicate them. evant in a much more competitive, com-
budgets, call centers and expensive “mar- For example, if the group of investors plex, challenging and digital world.
tech” systems are not needed. Advisory that you service best includes young
firms can leverage low-cost digital chan- tech executives with equity-based com- Timothy D. Welsh, CFP, is president, CEO and
nels for lead generation, create their own pensation, you know what messages will founder of Nexus Strategy, LLC, a leading con-
content (or leverage online-content plat- appeal to them (such as how to optimize sulting firm in the wealth management indus-
forms) and convert leads through their stock options), and where to reach them try. He can be reached at tim@nexus-strategy.
own, personal follow-up. based on their interests and demograph- com or on Twitter via @NexusStrategy.

18 Investment AdvIsor June 2023 | ThinkAdvisor.com