Client-centric marketing tactics and a more emotional approach are key to financial advisers' efforts to distinguish themselves from their competition, a media-savvy adviser said today at the Insured Retirement Institute's annual conference in Boston.
Bill Losey, principal of Bill Losey Retirement Solutions and a frequent guest on financial TV programs, led a panel of advisers in discussing the ways that they managed to attract and retain clients amid tough economic times.
Opportunities await those who know how to make themselves stand apart from their peers, he said.
“One reason why advisers are struggling to attract clients is because they rely on one or two marketing methods,” Mr. Losey said. “The best idea I ever heard is that you need multiple marketing channels that work together in order to attract clients.”
Advisers should “play to win” in their field of expertise by knowing and engaging their audience, he said, adding that it also helps if advisers reveal some personal details about themselves.
When investors are scared, advisers can comfort them by sharing their own past experiences, he said.
“I recognize that being vulnerable might be too touchy-feely for a lot of you and your advisers,” Mr. Losey said. “But being vulnerable is transparent and savvy; you get consistent, quick results, and it's ‘pull' marketing, not ‘push' marketing that repels clients.”
Other panelists said that their firms thrived when they made an attempt at being part of their clients' lives beyond
financial planning.
“It's terrible that we use net worth and income as classifications to determine whether someone should be a client of our firm,” said panelist Marc S. Freedman, president of Freedman Financial. He noted that the mass-affluent market is greatly underserved by advisers and by the financial services industry.
To engage his clients, Mr. Freedman took a different approach.
His firm endows a scholarship for which clients' children, grandchildren and great-grandchildren can apply. Along with grades and extracurricular activities, the applicants must answer an essay question, “What does financial responsibility mean to you?”
A client advisory council made up of 12 clients and their spouses select the winner each year. Aside from engaging clients, the contest encourages kids to talk about money, Mr. Freedman said.
“It's a tool that we've been able to use to listen to our clients,” he said. “We've helped shape the future of this country by letting them talk to their children about money.”
For panelist Pamela Nottingham, managing director of Nottingham Wealth Management Group, which is affiliated with
Wells Fargo Advisors, outreach includes creating client appreciation events to help establish long-term relationships and to get referrals even during tough times.
“There will be times when you go through volatility in the market, but if you're their friend, you will retain these clients,” she said. Her activities included taking female clients out for spring and fall fashion events and participating in other social events, such as the Octoberfest event in Salem, Mass.
Advisers also pointed out the benefits of being actively involved with the media and using local newspapers and TV appearances to establish a presence.
“Clients think, ‘my guy is in the media; he must be good,'” said Doug Lockwood,principal of Harbor Lights Financial Group. He has appeared on CNBC.
Further, annual parties to raise charitable donations not only get clients involved but also show that the firm cares about others — and they give local papers something to write about, Mr. Lockwood said.
