Marketing for your Wealth Management Company


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When old-line brokerage firms and investment banks dominated Wall Street, financial marketing served a limited purpose. Investors and financial product purchasers had more distinct, constrained choices. But although competition among firms and among products has increased geometrically, financial marketing companies have not adopted enough modern marketing techniques to be truly competitive. Financial products are not sold like traditional products or services. Often they are sold through a two-tier sales force comprised of wholesalers who sell to retail and brokers who present the products to the customer.

Further, the sale of financial products is regulated, complicated and variable, as new products are always being introduced and market conditions constantly fluctuate. To complicate matters, financial products differ from other products in that their underlying medium — money — is highly emotional and provokes its own set of attitudes and behaviors. Variables, such as the client’s degree of control over spending and saving, investment knowledge, willingness to rely on experts and comfort with risk all affect the marketing process. The selling cycle is also different, since the financial intermediary must develop a personal relationship with the client that often has little to do with the brand name of the product itself.  Clients often will follow their intermediary to a new employer. 

Financial services companies use multiple channels to reach customers, including:

• Direct approaches — They reach out via telemarketing, direct mail or online sales.

• Commissioned brokers — These representatives work directly for the distributor, insurance company or investment company.

• Self-employed agents — Independent agents sell products from different distributors.

• Independent advisors — These advisors are paid directly by their clients and do not receive commissions from the investment or insurance company.

• Retail brokers — These sales pros work for banks, brokerages or insurance firms.

Hot button marketing

Financial services are also cost resistant, to an extent. Commissions and fees often do not matter as much to customers as convenience, potential returns and familiarity. Inertia also keeps investors affiliated with brokers or insurance companies well after an investment has gone stale. Customers don’t move poorly-performing investments more often because they think it is difficult to transfer assets or close accounts. It is not. But this inertia gives marketers an opportunity since it lowers customer retention marketing costs and fosters cross selling. Financial institutions also know more about their clients than other businesses, which facilitates more specific marketing.

Segment Analysis and Outreach

To avoid ineffective mass marketing, analyze audience segments to identify the best, most profitable prospects you can reach. By targeting, you can use media specifically designed to reach a particular audience, build the affinity client base you need for referrals, improve your returns on your marketing investment and develop a more focused message. Markets can be segmented by demographics, geography, life stage and product.

Focus on the Marketing Plan

The blueprint of the marketing process is the marketing plan, the focal point for your marketing efforts. It allows you to predict activities, measure results and achieve goals.

The plan requires preparation, but it is not static. It changes with market conditions and is unique to your firm’s type, size and mission. In an organizational context, the marketing plan relates to the business plan, so review it against your firm’s financial, operating and production plans. The marketing plan can originate at the department, product, geographic or business unit level. Some more formal plans require executive committee approval, while other plans get developed further down the organizational chart and then must seek executive authorization.

Marketing plans should incorporate quantitative and qualitative research. While plans differ significantly, each one needs an executive summary, an analysis of the competition, identification of the target audience, a determination of the product’s position vis a vis its competition, objectives, tactics, ways to measure success and an assignment of responsibilities, with a schedule, budget and list of personnel.

To implement your plan, first develop a competitive analysis to establish your position against the competition. The SWOT (an acronym for Strength, Weakness, Opportunities, Threats) analysis has proven to be a solid tool in developing business strategies. Use it to launch a competitive assessment of your marketing objectives.

Post by: Patrick Murphy

Republished with author's permission from original post.

Patrick Murphy
SiliconCloud provides high-quality, customized solutions to satisfy business objectives by leveraging the online space to drive leads and nurture customer relationships. SiliconCloud's integrated solutions of Web Creative, Analytics, Search Marketing & Social Media is designed to elevate your image, inform sales strategies and drive business. SiliconCloud means having a clear vision. Dozens of organizations in B2B and B2C arenas have counted on SiliconCloud to pave their road to the future by securing their online presence


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