Wasn’t cold calling supposed to be dead? The Do Not Call Registry was started in 2003. It has been embraced by millions of Americans. Scam calls and robo-calls have made people even less receptive to telephone sales. Yet I recently read an article indicating at least one large firm was planning on moving it’s newer advisors away from cold calling. What direction might they choose?
Didn’t this happen years ago? Cold calling seems to have survived despite the odds? Why? Probably because it works. Business-to-business calling has largely been exempt. Let’s assume cold calling is really off the table. What might take its place?
A lot will depend on the market segment targeted by different firms. The UHNW client requires a different strategy than the mass affluent. Fortunately, big firms can put big budgets behind major efforts. Independent advisors also need to consider their approach if they haven’t yet stepped away from cold calling.
Let’s look at possible approaches, some already in use:
1. Public Television sponsorship. The audience watching Masterpiece on PBS is probably similar to the demographic firms seeking HNW individuals target. The PBS website indicates 86% of viewers have assets of $ 250,000+. 18% earn more than $100,000/year. They attract 63.7 million primetime viewers each month. Firms would sponsor programs watched by their target audiences.
Example: The PBS series Masterpiece is sponsored by Raymond James. Viking Cruises too.
2. Magazine advertising. You can reach people through their passion. Consider the Wine Spectator. Their 2018 media kit indicates their audience profile (IPSOS data) is 50 year old with average HH income of $322,959 and average net worth of $ 2.1 MM.
Example: First Republic Bank has been a major advertiser. Lifestyle brands advertising in WS include Lexus and Oceania Cruises.
3. Event sponsorship. Louis Vuitton, (LVMH) Hermes and Veuve Clicquot are synonymous with luxury lifestyles.
Example: According to Statista, LVMH spent $ 1.649 billion in U.S. advertising in 2019.
4. General TV advertising. You’ve seen the Fidelity ads on TV. According to 2018 data from Kantar and Ad Age, both Fidelity Investments and Charles Schwab each spent $149 million on advertising.
Example: The Superbowl included ads from E-Trade and Robinhood.
5. Significant community involvement. It’s not uncommon for private bankers to sit on boards of local community organizations. If you have a presence at the symphony, hospital and art museum, you are mingling with people prequalified to be clients.
Example: You can see this strategy in action by looking at the board lists for high profile local nonprofits. Your name might be on it!
6. Bank clients become wealth management clients. It’s cross selling in action. Branches refer to the advisory side. Advisors send mortgage and business banking prospects in the other direction.
Example: If your firm has a major bank as it’s parent company, you have seen this strategy in action.