Chances are you do not have a defined marketing plan. However, advisors who do have one are more confident they will reach their growth goals.
Those are two takeaways from a recent survey of advisors by Broadridge. The survey and steps advisors can take to establish marketing plans were discussed in January’s Horsesmouth Marketing Mastermind Meeting, led by Sean Bailey, editor-in-chief, and Devin Kropp, associate editor.
While only 20% of advisors have a defined marketing plan, 83% of those who do are confident they will reach their growth goals; 62% of advisors without defined marketing plans have that confidence.
“Those who operate from a marketing plan are vastly more confident they’re going to reach their goals and in fact do reach their goals,” Bailey said. “We have other data that shows that among Horsesmouth Master Members that this correlation between planning and success is consistent and repeatable.”
Understanding the marketing gap
The reasons behind this marketing shortfall are multifaceted. The Broadridge survey found that three in 10 advisors spend less than one hour per week on marketing, and 70% handle marketing responsibilities themselves without dedicated support.
Sean: “This industry is a classic example of too many hats to wear, not enough time to do it. Marketing is one of those things that tends to suffer and because people can, if you’re doing a good job with your client base, always count on a minimum amount of decent referrals coupled with a strong bull market, and people can still feel like things are chugging along fairly well. But we are here to tell you that if you’re really interested in optimizing the growth of your business and maximizing your opportunities, having a defined marketing plan isn’t that much work. And when you do have a defined marketing, the chances of you succeeding are much higher.”
The communication disconnect
But clients want to hear more from their advisors. The Broadridge survey also found
- 53% of clients want financial education from their advisor
- Only 44% of advisors share personalized content
- Just 26% of clients say their advisors meet their expectations on communication frequency
This disconnect often stems from misplaced concerns about overcommunication.
Kropp: “I often get a question [from advisors] of ‘I feel like I’m overcommunicating and I’m annoying my list and I don’t know what the right number is.’ And I’ve always held the belief that most advisors are not communicating enough. And even when you think you are, you’re probably not because not everyone reads everything that comes through.”
The evidence suggests that advisors who overcome the hurdles of establishing a marketing plan not only feel more confident about their practice growth but actually achieve better results.
Sean: “If you’re really interested in optimizing the growth of your business and maximizing your opportunities, having a defined marketing plan isn’t that much work. And when you do have a defined marketing plan, the chances of you succeeding are much higher.”
3 steps to an effective marketing framework
Kropp described three steps to developing and implementing a communication plan.
1. Communication planning
- 40–50 client touches annually
- Mix of educational content and market updates
- Regular personal communications
- Multichannel approach including email, social media and print
2. Educational events
- Monthly educational sessions when possible
- Mix of in-person and virtual events
- Focus on client-relevant topics
- Integration with broader marketing calendar
3. Content strategy
- Monthly themes aligned with financial planning moments
- Balance of technical and personal content
- Repurposed content across multiple channels
- Consistent branding across all materials
The AI opportunity
Artificial intelligence offers tools that can help advisors develop and implement marketing plans.
“We know that in this industry people are challenged by marketing,” Sean said. “The introduction of AI is the absolute perfect use case for this tool.”
Only 8% of advisors currently are using AI tools, according to the Broadridge survey. Thirty-five percent said they are planning future adoption. Half said they have no plans to use AI.
However, those who are using AI in their marketing are using it in these ways, according to the survey:
- 62% are generating personalized content
- 45% are personalizing marketing campaigns
- 41% are automating administrative tasks and communications
- 22% are segmenting clients or prospects
Sean: “I really think going forward with this new technology that everybody should be hitting their clients way more regularly…especially now with AI, because there should be no reason why you shouldn’t be able to have your own custom email client newsletter. The AI makes it so much easier.”
Bailey demonstrated an AI-based tool that Horsesmouth has developed to help advisors assess their marketing needs, capacities and goals. Horsesmouth is planning a series of workshops beginning in April to assist advisors who want to learn how to use AI tools in their marketing.