Advisors Expect Revenue To Rise In ‘10

FA News

CliffCampeau - Partner

|2010-07-14 08:02:58

What is concerning about the study’s findings were the items identified as “roadblocks” to growth. Of note, 56% of those surveyed indicated that the largest impediment was finding sufficient staff time to devote to business development, followed by the inability to develop, follow or fund a marketing strategy. Why the concern? In a rapidly changing, competitive and largely undifferentiated marketplace the role of marketing in driving RIA growth should hold a much loftier perch in a firm’s practice development mix. Marketing can assist independent RIAs in building their brand, increasing awareness, expanding prospecting efforts and establishing a position of thought leadership, trust and confidence among existing and prospective clients. The failure to embrace marketing leaves advisors susceptible to market forces, competitive challenges and evolving investor sentiment. What lessons did we learn from the market collapse of 2008 and the resulting upheaval within the financial services industry? Competition has become fiercer. Financial services firms, large and small, have stepped up their practice development efforts, fuelled by increases in marketing spending and the emergence of new media and technology platforms. Investor confidence is something that cannot be taken for granted. In their 2008 annual “Global Wealth Report” Merrill Lynch Global Wealth Management and Cap Gemini found that 46% of investors said that they did not trust their advisors and more than twenty-five percent of wealthy investors had either switched advisors or transferred assets away. While market conditions and investor concerns have tempered significantly since that point in time, can advisors afford to rely so heavily on market growth and client referrals as their primary practice development tools in today’s environment? Developing a marketing strategy and funding a marketing plan doesn’t have to be expensive. Further, if advisors would like assistance in the marketing strategy formulation, execution or business development areas there are effective and efficient outsourced solutions that can be employed. There is an old Chinese proverb that says; “Learning is like rowing upstream; not to advance is to drop back.” Don’t shy away from marketing and business development because of a lack of familiarity, comfort or core competence. Invest the time and learn how to leverage the tools available to your firm to increase your revenues in 2010 and beyond.

Free Site Registration
>>Login / Logout

Sponsored by

FA News

Advisors Expect Revenue To Rise In ‘10