Over the years, research has consistently shown the value of communicating with clients. Not only does frequent communication help your clients get to know you better, but it can also result in additional assets under management, increased loyalty, and more referrals.
Given the importance of client communication, you’d think it would be at the cornerstone of every advisor’s marketing plan. In reality? Few advisors create marketing plans—and even fewer focus on client communication specifically.
So, let’s take a closer look at how a marketing plan and client communication can fuel advisor growth, starting with insights gleaned from recent research.
Commonwealth recently conducted industry research on factors that lead to advisor growth. Not surprisingly, high on the list of factors leading to success was having a plan in place to achieve goals. Still, only 4 in 10 respondents (43 percent) reported their firms have formal marketing plans in place to attract new clients. Given that financial professionals often stress to clients the importance of having a plan, we don’t seem to take our own advice very well.
But even if your firm doesn’t have one, you should have a marketing plan for yourself—especially if you want to grow. The research shows substantial increases in annual growth for those respondents with formal business plans and marketing plans compared to those without them. It makes sense, doesn’t it? Having clearly defined goals means you’ve spent time thinking about what you want to accomplish and what you should to do to get there. Once you’ve decided on a strategy and the tactics, you’re also less likely to spend time on things that aren’t going to move you forward. Instead of wasting time in ready, aim, fire, you’re executing on a careful plan and tapping the resources needed to reach your specific goals.
Looking at the data a little closer, respondents who do have a plan believe their marketing efforts have been most successful with regard to strengthening relationships with current clients (47 percent “completely” or “very” successful), followed by promoting their services to prospective clients (31 percent) and securing new clients (29 percent). Strengthening client relationships should always be job #1! Before you do anything else, you want to make sure you retain all your best clients for the health and longevity of the firm.
This data point also means that more than half of advisors did not feel they were very successful in strengthening relationships with current clients, meaning those relationships could be vulnerable. And this is where client communication can play a key role.
Keep in mind that your communication can be as simple as an email or a phone call to check in with clients. It could take the form of a small gift or gesture to surprise and delight clients to mark an important event in their lives. Communication also may include a newsletter with your original content or an invitation to meet socially. Further, communication can cover the gamut of client events, community outreach, PR, and the use of social media. No matter what form it takes, though, it allows clients and prospects alike to get to know you better and for the two-way conversations that allow you to get to know them better.
Investor insights: communication matters
But do communication efforts work? According to recent research, the answer is a resounding yes. In Fidelity’s 2024 Investor Insights Study, half of advised investors are highly likely to recommend their advisors. In fact, the results reveal that compared to those who are least likely to recommend their advisor, those who are highly likely to recommend their advisor are:
• 2.5x more likely to be satisfied with the quality of communication with their advisors
• 3x more likely to say their advisor cares about them as a person
• 2.8x more likely to say they can talk to their advisor about anything
If you are looking to grow, a good place to start is with a strategic marketing plan. It should allow for the time and resources needed to craft careful client communications. I think you will find that these communications will help you deepen the great relationships you already have, while paving the way for prospects to become your next great clients.
Please consult your member firm’s compliance policies and obtain prior approval for any ideas discussed in this article before moving forward.
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