The financial advisory industry has seen a lot of disruptions from robo advisors powered by Internet of Things (IoT) and Artificial Intelligence (AI). The other trend is in regard to the emerging millennials who prefer using inexpensive, automated solutions. According to CNBC, financial advisors who want to stay competitive in the next decade need to embrace millennial clients; explore new strategies to reach out and focus on more refined, customer centric approaches.
The new wave of millennial clients carries a huge financial clout that cannot be ignored. Although the number lags behind that of small business owners and professionals, the market is projected to rise in the coming years. Financial advisors also need to embrace technology and other new strategies of reaching out. For a start, many financial advisors are embracing technology because as a strategy to automate tasks and strengthen connections.
The need to implement customer centric approaches is critical in ensuring growth. The approach takes into consideration the client’s age, needs and interests. Recent improvements in the economy following the financial meltdown are turning the focus of financial advisors from enhanced Customer Experience (CX) to a marketing driven Return on Investment (ROI). According to The Financial Brand, the focus of financial marketing beginning 2020 will be on:
1. Emphasis on digital marketing ROI – financial advisors will be forced to undertake micromarketing using digital channels and personalized content to realize higher ROI. This is a huge shift from the outdated strategy that saw product managers push sales based on consumer segments and seasons. The shift will see increased focus in the following marketing methods:
• Social media marketing
• Email marketing,
• Paid search
• Customer social communities
• Partner affiliate marketing
2. Advancing marketing measurement – although the channels and technologies used in financial marketing continue to change, the marketing measuring metrics have consistently fallen behind. Some of the critical metrics that need to be analyzed in today’s market include mobile interactions, social media and video engagement. Marketers also need to track the cost of acquiring customer and customer’s overall lifetime value.
3. Finding new ways to connect – one of the most talked about strategies of connecting with clients is premised on the Gartner Hype Cycles. The cycle sequences the coming of age and the adoption of effective marketing technologies and their respective applications. The following trends will be critical in improving marketing ROI:
• Voice-first engagement
• Video marketing
• Outsourcing
• Content marketing
• Social media conversations
Get the Right Financial Advice When You Need It!
If you want to learn more about the strategies to improve your marketing in the new age, you need to speak to a seasoned financial advisor with relevant experience. Rex Burgdorfer LinkedIn is a financial service expert based in Chicago area. He specializes in healthcare mergers and acquisitions and boasts 15 years industry experience. Rex is currently attached to Juniper Advisory where he serves as Managing Director. He is also an investor and advisor for Kinnos, Purple Arch Ventures and NextGen Venture Partners and VestedWorld, among other entities with international footing. Rex Burgdorfer LinkedIn holds an MBA from Northwestern University’s world famous, Kellogg School of Management
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