Page 34 - Investment Advisor July/August 2023

on our contact list but haven’t signed
up to work with us? Or are we going to
target our existing clients to encourage
more referrals?
Choosing which one to start with
largely depends on how much money
you want to spend and how predictable
you want the results to be.
Raising brand awareness and generat-
ing interest in your firm is usually the
most expensive strategy. Think of the cost
of sponsoring a local charity event, for
example. This could easily be a $50,000
spend. And that financial commitment is
made without knowing exactly what the
return on investment will be. Focusing on prompting existing clients to
On the other hand, if your market- give your referrals is the most inexpensive
ing push targets those on your contact
list, you can expect each prospect that way to generate new business because it
emerges to cost about $2,000 in time
and tactics. If your budget is $10,000, simply takes being diligent about having a
know that you’re going to get about great client experience. Happy clients refer
three prospects from your investment.
Focusing on prompting existing clients their friends and colleagues.
to give your referrals is the most inexpen-
sive way to generate new business because should be prepared to try a few things. ment. And effective marketing strategies
it simply takes being diligent about having Pick one, implement it consistently, for advisor firms are very clear on which
a great client experience. Happy clients then pick the next idea and implement key performance indicator needs to move.
refer their friends and colleagues. it consistently. It’s important to maintain Is the goal to increase referrals or
Many advisory firm leaders have a low a sense of openness and curiosity about leads by a certain number each month?
tolerance for uncertain returns on invest- what approaches might potentially work. Is the goal to boost the number of free
ment (ROI). And while I can say with If your strategy involves brand aware- consultations? There are 100s of KPIs to
100% conviction that consistently great ness and targeting individuals who are track, but we must have a relevant KPI
client experiences lead to strong, sustain- not aware of your business and the ser- that can quantify progress. If the KPI
able referrals, there’s no good way to proj- vices you offer, you might start with isn’t moving, adjustments have to be
ect the ROI. You just must put in the work. digital advertising, then try educational made to make it move.
Likewise, with brand-awareness seminars and/or a podcast. The point When firms want to see positive
campaigns, you must spend the money is that you must be ready to tackle the results relatively quickly, it can be hard
to see what resonates. problem from different angles and to step back and think about marketing
Even though both of those approaches watch the KPIs to determine what is strategically. In times like this, the incli-
can be quite effective, a need for predict- working and what is not. nation is to do something — anything —
ability compels many advisors to focus And finally, when dealing with your right away to bolster revenues.
first on prospects. That allows them to existing clients, your most valuable source But like setting off on a trip without a
use a marketing strategy in which they of referrals, the goal is to focus on improv- map, you will likely end up spending more
can track metrics like email open rates, ing client service. Thus, staying engaged time, effort and probably money than
click rates in the case of digital advertis- in developing your client experience and necessary to achieve your goal. Whether
ing, or appointment scheduling rates. consistently delivering excellent service. the business environment is good or bad,
The best place to start is advisor training make sure you create sustainable strate-
TrIAL AnD error to dramatically improve response time. gies that move the numbers.
Once you pick a purpose to focus your
marketing on, it’s important to under- MovInG THe neeDLe Angie Herbers is an independent consultant
stand that the first approach you try very Now back to KPIs. In business, there’s no to the advisory industry. She can be reached at Adobe Stock
likely won’t be the most effective one. You lasting improvement without measure- [email protected].

32 InvesTmenT ADvIsor July/August 2023 | thinkAdvisor.com