The world of marketing communications is changing, investor expectations are evolving and technology is the primary enabler. Has your firm kept pace?
Consider that 81% of U.S. adults utilize the internet, 50% of U.S. mobile users now own smart phones, 55% of Americans used a mobile device to access the internet in 2012 and 31% of those indicated it was their primary means of internet access. More importantly, according to a 2012 Pew Internet study found that in households with net incomes in excess of $75,000, internet usage was 98% and 68% of these HH’s own smart phones.
Why are these findings important? According to the Federal Reserve’s “Consumers and Mobile Financial Services” study conducted in 2012 they surmised that “the ubiquity of mobile phones is changing the way consumer’s access financial services.” The actions of those surveyed would certainly reinforce this observation:
• 90% checked an account balance or checked recent transactions
• 48% downloaded a bank’s mobile banking application
• 42% transferred money between two accounts
• 33% received a text message alert from their bank
• 31% indicated they would track their finances on a daily basis if an app was available
Two things are becoming increasingly clear; 1) consumers are adopting technology and integrating it into their everyday lives 2) these same consumers are becoming more and more comfortable managing their financial affairs online. In the words of noted graphic designer and author Clement Mok;
“Five years ago, we thought of the Web as a new medium, not a new economy.”
Yet, in our financial advisor marketing practice we have found the rate at which FAs have integrated technology tools into their practice management and practice development efforts has been much slower than the rate of consumer adaption. Approximately one-third of the advisor firms who reach out to Evolutionize still don’t have a website, two-thirds do not have a mobile-friendly website, one-half do not employ an email campaign management platform as part of their client and prospect communications and a majority have not formalized a social networking program.
In an industry where attracting new leads, converting prospects and earning client trust is so critical to success we can agree that maintaining a clear and consistent marketing communications program is critical to these efforts. And, if a firm is interested in fielding a successful marketing communications program, one which features relevant, timely content/ messages targeting key stakeholders then it is not a stretch to suggest that leveraging digital technology to support these efforts is important.
One can only speculate on what is holding so many advisors back when it comes to marketing in general and digital marketing specifically. The reasons are likely many, ranging from not believing in the efficacy of marketing to a lack of knowledge in this area and or limited technical acumen. Perhaps advisors can find motivation in the advice from Vic Sussman and Kenan Pollack;
“The message for business people contemplating their place in cyberspace is simple and direct: get linked or get lost.”
As we sit today with the Dow and S&P at record highs, times are good for investors and in turn for advisors. We have enjoyed a run-up of 9,000 points in the Dow from the lows of 2008 and as a result, perhaps complacency has set in when it comes to client communications. This is a risky proposition. Lest not forget how client trust plummeted following the market crash and its resulting impact on advisor-client relationships. It is now, during the “good times” when advisors should be focused on forging stronger stakeholder relationships.