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Market volatility, heightened compliance pressures and a competitive environment for wealth management professionals continue to challenge independent broker-dealers (IBDs) and registered investment advisors (RIAs) to keep their businesses out of business, according to a new report. We need to find new solutions to produce.
Broadridge Financial Solutions’ 4th Annual Financial Advisor Marketing Survey reveals that 63% of advisors are actively seeking new clients, yet inbound prospect requests are meeting actual demand. It became clear that no 2021 years.
As such, their confidence in meeting their practice growth goals is somewhat diminished. When asked about the practice’s growth goals over the next 12 months, just over half (52%) said they were “very or somewhat” confident, but this is his 2021 her It’s down from 63%.
Kevin Darlington, Head of Broadridge Advisor Solutions, said: “Despite evidence that going on the offensive with sharp marketing strategies leads to business growth, especially in volatile markets, advisors are back on the defensive and devoting the appropriate level of time, money and effort to marketing strategies. I’ve seen it fail to allocate.”
That said, Darlington adds that the use of digital media is a silver lining and continues to trend upward as advisors “double down” on their digital strategies to generate leads.
clear marketing strategy
When it comes to marketing strategy, the study found significant differences in results between advisors who had a clear marketing strategy and those who didn’t.
Overall, advisors’ average marketing spend continues to grow (increasing from $16,090 in 2021 to $17,433 in 2022), and the share of revenue allocated to marketing has increased from 3.6% in 2021 to It has fallen to an average of 3.1% in 2022. The percentage of advisors reporting that their marketing budget is less than 1% of their total revenue has increased significantly from 21% in 2021 to 30%.
However, only 10% of advisors reported being extremely satisfied with their marketing return on investment (ROI), down from 15% in 2021. This may depend on having a clear marketing strategy.
Despite spending more on marketing, only 28% of advisors have a clear marketing strategy (up slightly from 26% in 2021). However, research shows that these advisors are much more likely to achieve better business outcomes than those without a defined marketing strategy. In this case, 76% of advisors with a defined marketing strategy feel “somewhat or very” confident in achieving their practice growth goals, compared to He is only 43% of advisors without
Additionally, advisors with a defined marketing strategy have more than doubled the number of new customers in the last 12 months, with an average of 41 new customers versus 17 who have none. .
In terms of challenges, 82% of advisors reported that developing a marketing plan/strategy was their biggest challenge when it came to marketing activities, with more time spent on marketing activities (81%) and managing compliance (79%). Splitting follows.
Use of social media
Meanwhile, the biggest increase in marketing investment will be for digital strategies such as websites and social media, and traditional channels such as TV and radio.
In fact, research shows that the success rate of advisors converting social media leads to clients is on the rise, from 34% in 2019 to 41% in 2022. Additionally, his 57% of advisors with a defined marketing strategy converted social media leads to new clients, while his 36% of advisors without a strategy did not. Unsurprisingly, LinkedIn and Facebook are the preferred social media platforms for advisors, far ahead of other platforms such as Twitter and Instagram.
Yet content marketing remains a challenge for advisors. Lack of time (39%) and uncertainty about the best approach (37%) remain the biggest barriers among users who rarely or never share content.
At the same time, most advisors (61%) report that they find their website effective in generating leads. That said, only 31% of advisors plan to increase their website spending over the next year, the highest spending allocation of all areas reported.
Other key tactics include using digital marketing to grow your pool of prospects. The percentage of advisors growing their business outside of their region continues to grow, from his 24% in 2021 to his 27% of advisors today, indicating that they serve non-local clients. I’m here.
And young advisors who are leaning toward the idea of ​​featuring testimonials in marketing plan to take advantage of recent SEC marketing regulation updates. Survey results show that the enrollment rate for advisors under the age of 45 is 43% compared to the common 30%.
The survey was conducted by 8 Acre Perspectives on behalf of Broadridge from September 29 to October. As of 10/10/2022, of the 401 registered financial advisors, they are mainly split between his IBD (52%) and his RIA (43%) channels.
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