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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].



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