The 5 Biggest Marketing Mistakes Advisors Make

Feb 28, 2023 10:14:32 AM

Technology has democratized the Wealth Management Industry and, ultimately, advisor marketing. Historically, financial advisors were the gatekeepers to access products and services. That has certainly changed.   

  • What is your value proposition now?   
  • How can you stand out from your competition?   
  • How are you demonstrating your unique offerings?  

In an age where reaching potential clients is easier and less expensive than at any other time, digital marketing for financial advisors has moved from optional to absolutely essential. Not only can markets be segmented to reach target audiences with your messaging more quickly, but the advent of advanced CRM systems makes tracking your marketing and return on investment metrics a breeze.   

Historically, marketing and advertising returns have been difficult to quantify in terms of conversion. The only way to measure your efforts was against the annual revenue growth benchmark; even then, no guarantee leads came directly from marketing sources. These days, business owners can track metrics across assets from email to social to the website in real-time, allowing them to test, track, and measure the ROI of every dollar spent on digital marketing.    

Tracking marketing metrics

In our last blog post, How to Market your RIA- we highlighted that most financial professionals and advisory firms spend no more than 1-2% of revenue on marketing to reach their target audience.   

This failure is first on our list of the biggest mistakes RIAs make. If you want to grow your business and marketing efforts to reach your ideal client, read on to explore some of the biggest marketing mistakes advisors make and the top ways to create a successful marketing plan for financial advisors.   

Overlooking Digital Marketing

“I don’t need to market digitally.” 

Don’t ignore or underfund your marketing budget: it is a vital part of any business growth strategy. The first step for any financial services business is to conduct a thorough audit of your current website.

Embrace tech innovations and use them to your advantage. Your website one of the most powerful tools you have to communicate your unique value as an advisor. If your site is old or outdated, you will have no visitors, or worse- they will see how little you care about keeping current.   

Consistently create original content: blogs, podcasts, and videos which will help to boost your search engine optimization and search rankings. Promote your content (20% of your time creating content and 80% of your time promoting it) on social media. This is how new clients will find you and come to you organically. This is a strategic advantage that should not be ignored. 

Neglecting to Prospect

"I don't need to prospect. I have a great existing client base!"  

Never assume a quiet client is a satisfied client. Proactively check in on your clients. Be outgoing and practice active listening.   

Your clients need respect, high-quality service, and communication. Get clear on your client's values by having challenging conversions and remember to include the next generation in those talks.   

If you have an aging client base and maturing book of business, don't assume their children will continue with you. Instead, build those relationships by showing up with authenticity and emotional intelligence. Show your personality by making your story the star of your brand, which is the first step in marketing. Also, know when to pick up the phone and check-in. 

Outdated Technology 

“I don’t need to audit my business practice. What I do now is working” 

Are you using tech properly and efficiently as part of your digital marketing strategy? You can see if your efforts are working when you have the most current tech. Using a CRM, such as HubSpot, can help you see how well your email marketing is working to reach prospective clients in real-time.   

Tracking metrics is easy, all under one tech stack.   

  • Who is reading your emails?  
  • What is your open rate?  
  • Click-through rate?  
  • How long do they interact with your website and social media? 

This can help you audit your front, back, and middle offices by measuring the efficiency of your efforts, creating workflows between team members, and automating processes, marketing, and customer service. Paying attention to tech also helps you stay current on cybersecurity and compliance, which continue to be an ever-changing hurdle.   

Having a business plan

Underestimating the Need to Outsource

“I do not need to outsource. I can do this all myself!”

You might think that marketing is a great idea, and so is updating your website, but you don’t have the time or the capacity to deal with it. Ditch the one-man-band mentality and get efficient in your search for potential clients. Outsourcing and delegating will help you stay in front of your clients and find new ones.  

Operations can be delegated, and tech can help you organize your data. Outsource to compliant partners that know the business and know the rules. Find out what you want to absorb internally and then outsource the rest. Knowing what you can absorb can only happen once you make a formal business plan brings us to #5 on our list. 

Failing to Formulate a Business Plan

“I don’t need a business plan; I've been doing this a long time.”

You should update your business plan if it’s been more than a year. It should be reviewed quarterly and should incorporate tech discovery and have a focus on marketing. What can increase your value? 

Look at your average client age and revenue growth rate, and ensure you have a solid mix of strategies to offer your clients.  The business plan is the first step to building a successful and up-to-date RIA practice.

The bottom line, your expertise is valuable, but so is your competitors! The challenge is to own your narrative, highlight your personal story, be relatable, and share it so that others can see it, talk about it, and tell their friends about it. Create educational content that is accessible and relevant. Your blog posts, podcasts, and videos build credibility and trust.

All this marketing collateral will position your brand, create visibility for your business, and showcase your investment authority. Share your knowledge along with your unique personality and worldview.   

All this will help you earn the right for the face-to-face meeting, which is the starting block for a trusting relationship. Next, measure your output and adjust if this is too much, delegate and outsource.   

Find a partner aligned with your growth mindset, values, and ethics. 

Vineyard Global Advisors offers a range of investment strategies designed to allow participation in the market's growth within a dynamic, risk-managed framework that seeks to offer protection during significant market declines. Our goal is to take the emotion out of investing and give our clients greater peace of mind by generating steadier returns over time. 

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