The United States economy is still roaring back from the Covid-19 pandemic. The stock market’s performance in the first 100 days of the Biden Administration is the best since the 1950s. During this period, the S&P grew more than 24%.
There are several reasons behind the rapid growth. For one, the U.S. government is pumping money into the economy via stimulus checks and other federal benefits. Also, demand for products and services is high as the nation turns the corner on the coronavirus.
There are so many opportunities out there to increase your wealth. Read on to learn how a wealth manager should market these opportunities. Explore our comprehensive guide to marketing support for wealth management consultants.
What Is Wealth Management?
Many people do not know the difference between wealth and income. They also do not understand what a wealth management advisor does.
It is important to define wealth management to prospective clients. This is an effective way to convince customers that a wealth management consultant is worth their time and money.
Your business profit or capital gains on investments are considered income. While an important part of generating wealth, they paint an incomplete picture of your financial status. There are several other factors in play that require consideration.
For example, what about your personal or business assets? The business property that you own outright is a valuable asset. It contributes greatly to your overall wealth.
The same goes for individuals that have a large equity stake in real estate. Boats and vehicles are other potential assets.
Your personal wealth also takes liabilities and debts into consideration. That boat or sports car is not an asset if you owe more than its worth.
A wealth management advisor reviews your entire financial picture. They look beyond how much salary or profit you take home.
Most importantly, a wealth management consultant points you towards opportunities to increase your wealth. They conduct comprehensive evaluations of your business and assets. Coaching is provided to instruct you on how to leverage cash flow and assets to multiply your wealth.
Why Is Marketing So Important to Wealth Managers?
Did you know that 50% of small businesses fail within the first five years? After a decade, only 3 out of 10 businesses remain open.
You might be a terrific wealth manager and the business still fails. It is not easy to get the word out that your wealth management company gets incredible results.
This is why marketing is so important. Your business has to generate leads in order to create sales conversion opportunities.
There is no silver bullet to create leads. Instead, your wealth management advisor will help you generate a sustainable flood of new leads.
It is also important to recognize that effective marketing strategies evolve over time. Marketing strategies that worked in the early 2000s may no longer be effective today.
For instance, a few decades ago every successful business had a large portion of their budget invested in print and radio advertisement. Those days are long gone as newspapers are obsolete. Radio is another dying industry as drivers turn to satellite radio without commercials.
Our marketing team will help your business develop a strategy that is appropriate for the modern era. A targeted digital marketing campaign is necessary to succeed now.
What Is Your Niche Market?
It is a mistake to execute a one-size-fits-all approach to marketing. The end result is almost always a low conversion rate. Also, the return on investment (ROI) on your marketing expenditures is sure to underwhelm.
Instead, the proper approach is to identify your ideal client. There are a number of questions to ask before identifying a target customer base.
What is the proper income level to benefit from a wealth manager? The conversion rate is not going to be strong on New York City residents earning less than six figures per year. While there may be some diamonds in the rough, the vast majority will be managing personal debt.
Obviously, location plays an important role in wealth management marketing. A dollar takes you farther in states with a low cost of living.
Age is another factor to consider when identifying the ideal client. Generation Z and younger Millennials may not be established enough to pursue. Again, there may be some good clients hidden away but the majority is not ready for wealth management.
Data clearly reinforces the notion that marketers should target certain age groups. For the 35 to 44 age bracket, the median net worth is over $91,000.
On the other hand, the 45 to 54 age bracket has a median net worth of nearly $169,000. This represents an 85% increase from the lower age group. The median net worth grows even more for people aged 55 to 75 years old.
There are other demographics to consider. Factors like occupation, education level, and homeownership may apply to your business model. Our wealth management advisors will coach you up on the ideal client for marketing efforts.
This tailored approach is critical to producing a positive ROI on your marketing budget. Your expenditures are now laser-focused on the customer base most likely to see opportunity and sign up.
What Is Digital Marketing?
An effective marketing strategy requires a digital footprint. Digital marketing promotes products and services using technology.
Contemporary marketers recognize the many hours that people spend on computers and mobile devices. In fact, Americans spend more time on their mobile device than they watch television.
As a result, marketers wisely try to reach people via the software applications on these devices. This is where your target customer base comes into play.
Today’s potential customer spends hours on social media per day. On Facebook, for example, you can tailor your advertisements to reach certain age groups and other factors. The advertisements only display to users that meet the pre-defined criteria.
There are many other social media applications to advertise on. Instagram and Snapchat are popular apps for photos and videos.
Social media users prefer interactive media to reading. While online, many people are quickly scrolling through and only offering a glance at text content.
Videos, for instance, are more likely to catch a prospective customer’s attention. Surveys show that nearly 3 out of 4 people prefer video content over text. The bottom line is that video content is certain to produce more leads than a blog or social media post.
How Do You Communicate With Customers?
In this digital era, prospective customers seek a quick and constant line of communication. When an inquiry into wealth management is made, they are looking for an immediate answer. A failure to respond quickly may push the client to another company.
This is where automation comes in. Successful companies are turning to live chat features or a chatbot. Automatic confirmation e-mails are another way to show prospective clients that you are present.
What does your website do when a new person visits? A chatbot feature helps point website visitors in the right direction. This helps convert a lead to a sale.
An e-mail list is another way to frequently communicate with existing and prospective customers. Remember the old saying, “out of sight, out of mind.” This holds true in marketing and how to retain existing customers.
For starters, you have to find a creative way to ask for a customer’s e-mail address. Perhaps they receive a promotional offer by signing up for e-mails.
With recurring e-mails, you can promote new wealth management services. You can stay in the customer’s ear about reinvesting that annual bonus.
What Do Prospective Customers Want to Hear?
When developing your company’s message and brand, it is important to consider what your customers want to hear. What message will catch their attention and push them to follow up?
When it comes to wealth management, customers want to hear success stories. They want statistics showing what percentage growth your existing customers are experiencing. Also, they are looking for customer testimonials showing that they can trust you.
Marketing materials are a great place to highlight your credentials. While things like education and experience are important, today’s customer wants to get straight to the bottom line. Can you help them multiply their net worth?
The digital space is saturated with quality and junk content. You can raise a potential client’s eyebrows by showing what you did for someone else.
Consider an example in which you took on a client with a $1 million net worth. Within one year, this business increased its net worth to $1.5 million. This 50% annual return is going to pique a person’s interest who wants to make more money.
Marketing Support for Wealth Managers: Is It the Right Time?
There is never a wrong time to start marketing your business. While every company has a different marketing budget, there are many different ways to get the word out.
Our wealth management advisors will help you spend the marketing budget more efficiently. They specialize in increasing marketing ROI and generating more leads.
If you are interested in marketing support for wealth managers, contact us today to get started.