Own Your Space: The Case for a Differentiated Marketing Strategy. Inside:

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1 Own Your Space: The Case for a Differentiated Marketing Strategy It s time for advisors to rev up their marketing activities to help capture investor interest. Why? An ongoing review of numerous websites and collateral materials by Fidelity s marketing team shows little differentiation among advisors, which can make it difficult for target audiences to understand the nuances between one firm and another. In addition, many advisors lack a comprehensive offline/online outreach program to be heard often and by as many prospects as possible. This paper discusses a three-step approach for advisors to consider, in order to take their client acquisition strategies to a new level. It outlines the importance of being specific about who is being served, customizing messages, and increasing impact with a multichannel marketing strategy. Inside: Sharpen Your Marketing Strategy 2 Lessons from the Field 3 oxygen Financial SignatureFD JOYN Advisors Take Steps to Own Your Space 9 Case studies provide interesting insights into how three advisory firms are increasing their average account size and growing their assets under management (AUM) by following a disciplined approach for capturing the attention of well-defined segments of the market.

2 Sharpen Your Marketing Strategy The game has changed. Information is being shared at such a rapid pace today, it s creating a fight for airtime as firms strive to be found by potential clients and have them listen to their pitch. This is affecting financial advisors, too, and calls for a new approach to reaching target audiences more often and more effectively. Consider following the threestep approach below to help you own your space. Only when people can locate themselves inside the story will they truly belong and participate in your narrative. Michael Margolis, Author, Believe Me STEP 1: Be specific about who you serve STEP 2: Customize messages STEP 3: Maximize impact with multichannel marketing We look at each of these steps in turn. You need to follow a disciplined approach to own your space, and client examples show it can potentially have a very positive effect on the business. Ross Ozer, Vice President, Fidelity s Practice Management and Consulting Group STEP 1: Be specific about who you serve It s hard to have a compelling message that really resonates with investors if you say you are serving individuals and families broadly. Defining a narrower playing field and creating areas of specialty can provide the opportunity to relate to your target audiences in a more personalized manner. This could be based on the life stage, gender, or profession of particular investors. Areas of specialty often come about in a number of ways. For example, they may be the result of: An evolutionary process, as advisors see they have clients with similar traits and challenges, and begin to sharpen their story for this segment of the market. Advisor expertise, where team members draw on prior industry experience to build a business focused on a certain profession. A merger or acquisition, where a firm inherits a specialty as they close a deal. A deliberate initiative, which is undertaken to target a new group of investors that represents an attractive opportunity. A unique approach to advice that s directed at people dealing with particular life situations. Choosing a specialty area doesn t mean giving up the rest of your client base, or turning down every opportunity that isn t an exact fit. It s about focusing your marketing efforts to help increase your profile and perceived expertise with select groups of prospects. 2

3 STEP 2: Customize messages Framing your capabilities to speak to the specific needs that an individual or family faces may get more attention than being very generic. Yet, Fidelity s online strategy report 1 found that only 42% of advisors customized messaging and content to align with ideal client targets. If you are targeting business executives, they may be receptive to a message about maximizing the value of their stock options and minimizing taxes. Likewise, if you are targeting young parents, they may be interested in a message about how to pay for day care and/or the benefits of 529 plans. STEP 3: Maximize impact with multichannel marketing Research 2, 3 shows that savvy marketers use a combination of offline and online initiatives to help build the business. A Fidelity study of advisory firms highlighted a group of Marketing Leaders 2 that felt their marketing and business development capabilities were advanced or fairly strong. Among other things, the firms outreach activities include events, blogs, online ads, and s. Another study 4 highlighted a group of high-growth advisory firms that found social media to be a valuable approach for adding new clients. 65% of Marketing Leaders 2 use digital marketing (blogs, online ads, s). 60% of Marketing Leaders2 say events are an effective way to generate new business. 67% of high-growth firms3 say they added new clients directly as a result of social media activity. Lessons from the Field To share insights about how to own your space, Fidelity conducted interviews with three firms that utilize the three steps discussed earlier. FIRM INTERVIEWED INTERVIEWEE DATE LAUNCHED AUM4 oxygen Financial Inc. Affiliated with a broker-dealer SignatureFD, LLC An RIA JOYN Advisors, Inc.5 An RIA Ted Jenkin Co-founder and CEO Doug Liptak Co-founder and Chief Development Officer David Geller Co-founder and CEO 2008 ~$500 million Launched in 1997 and rebranded in 2007 Launched in 1991 and changed focus in 2005 ~$2.4 billion ~$1.2 billion All three firms have a robust 360-degree marketing program in place that is continually being expanded and refined. In each case, their website is the central hub for everything they do, showcasing their articles, events, videos, and more with links back and forth between social sites. According to Fidelity s online strategy report, 1 70% of advisors agree that having an effective online strategy is essential to remaining competitively differentiated, and critical to attracting and recruiting specific client targets to their practice. 1 The report was based on data from panelists who completed the Online Strategy Survey in Fidelity s Financial Advisor Community during the period from April 26 through May 19, Approximately 25% of the 239 active panelists qualified for and completed this survey. 2 Marketing Leaders are participants in The 2014 Fidelity RIA Benchmarking study who felt their marketing and business development capabilities were advanced or fairly strong. The study was conducted from May 6 through June 30, 2014, in collaboration with an independent third-party research firm unaffiliated with Fidelity Investments. The experiences of the RIAs who responded to the study may not be representative of the experiences of other RIAs and aren t an indication of future success. A total of 411 firms completed the study. 3 High-growth firms are referenced in Communication Evolution: Financial Professionals and the Future of Thought Leadership and Social Media, a joint study by LinkedIn and the FPA Research and Practice Institute, As of February Formerly known as GV Financial Advisors, Inc. 3

4 To be as efficient as possible, the firms use a variety of automation tools, including: Popular website content management systems that are designed to let users with little knowledge of programming languages easily create and manage Web content. Keyword identification tools to identify words and phrases to include in copy, in order to improve search engine optimization (SEO) to maximize the number of visitors to their website. Social media management systems to create, schedule, and publish content for Facebook, Twitter, YouTube, LinkedIn, and other sites. Website traffic measurement tools to see who comes to their site, what they look at, and how long they stay. Social media intelligence and monitoring tools to gain metrics about their online pages, which posts are most engaging, when posts are accessed, and more. marketing systems to create, send, and measure the impact of s. oxygen Financial STEP 1: BE SPECIFIC ABOUT WHO YOU SERVE Ted Jenkin and his partner, Kile Lewis, had extensive experience in the financial advisory business that they brought to oxygen Financial when they co-founded the firm in As the name suggests, this was a new initiative to serve people in their 20s, 30s, and 40s. The partners knew that a number of successful advisors had launched their careers by working with younger clients and nurturing these relationships over time. They thought they could repeat the cycle and capture a segment of the market many advisors were ignoring. We were in the Gen X/Y age range ourselves and thought we could really relate to younger clients. Ted Jenkin The partners set out to create a nontraditional Starbucks -like office to appeal to a younger investor. They brought in an oxygen machine, loaded the fridge with TaB and Sunkist to bring back childhood memories, and put handheld games in the lobby. The firm s marketing materials were very overt about serving Gen-Y and Gen-X investors but that strict focus lasted only about 18 months. The team received feedback from older people who loved the streamlined business model, but felt they weren t a fit because they didn t see themselves in the firm s story. So, the partners expanded their message. STEP 2: CUSTOMIZE MESSAGES Ted and Kile now cast a broad net, but messages are customized for each group served. For example, individuals are split into Gen Y, Gen X, baby boomers, and retirees. Families split into recently married, married with kids, domestic partners, and empty nesters. Visitors to the website select their profile and are presented with a set of questions specific to their life stage. If they are interested in a consultation, they fill in an online form, indicating which issues they would like to discuss. 4

5 MARRIED WITH KIDS Questions to ask: Do both of us need to keep working? How can we live on one income? What is the best strategy to pay for day care? Should we get a 529 plan? Can you advise on the best way to get scholarships and federal aid? How much should we be saving for our kids college education? STEP 3: MAXIMIZE IMPACT WITH MULTICHANNEL MARKETING Ted sees the advisory industry heading down the same path as real estate, where people start searching for a home via the Internet before calling an agent. To capitalize on this change, the firm makes it easy to be found and provides enough information for people to determine if they are a fit or not. About 21,000 monthly visits to the website last year resulted in 1,250 qualified leads and a 22% conversion rate. 6 A relentless focus on traditional and social media has enabled oxygen to scale organically and create a strong market presence. If a person reads an interesting blog I wrote, then sees me featured in a magazine article, and then hears me on the radio, that can have a huge impact on my credibility. Ted Jenkin Social media sites provide an opportunity for Ted to present a host of general interest pieces that are shareable. Catchy topics, such as How to Do Spring Break on a Budget and Places to Get Free Stuff on Your Birthday, coupled with extensive photos, has bumped the firm s likes on Facebook to over 19, Your Smart Money Moves blog was first written back in Two to three new articles a week provide free advice, helping to build a strong following and making it one of the top 20 financial blogs in the country today. 6 Most people aren t looking to read esoteric financial articles. They are interested in consumer advocacy and saving money, so that s what I write about and it gets shared. Ted Jenkin Radio spots every Tuesday morning on an Atlanta rock station provide a with-it approach for listeners of all ages to hear Ted s views on the market and a variety of financial topics. Articles have been placed in over 60 magazines and newspapers, 6 and Ted has also been a featured columnist on The Experts, the Wall Street Journal s exclusive group of industry thought leaders. Videos are placed on YouTube with embedded links to additional information. Topics like Five Money Moves to Make When You Are Pregnant, Five Money Lessons to Teach Your Children, and How to Save $1,000 Fast spark high viewer interest. 6 Ted believes videos and mobile are where the market is headed. He is in front of the curve with his mobile business card, which enables him to collect phone numbers when he sends it and then drip text messages with links to an article or video. 6 oxygen Financial, Facebook.com/oXYGenFinancialInc/. 5

6 SignatureFD STEP 1: BE SPECIFIC ABOUT WHO YOU SERVE Doug Liptak, Co-founder and Chief Development Officer at SignatureFD, and a group of CPAs spun out of a large accounting firm in 1997 and created an RIA called F&D Advisors. The firm rebranded in 2007 as SignatureFD to reflect the idea of creating a financial design for clients that s as personalized as their own signature. While generalists at the time, the team saw the power of communities where their services could be very specific for different types of investors and COIs. There is so much opportunity out there, you need to be focused and rally around the areas where you want to spend your time. Doug Liptak The team took steps to own its space by leveraging the expertise and passions of its advisors: A book of business with executives, health care professionals, and lawyers led to the formation of SignatureEXEC, SignatureHEALTH, and SignatureLAW. A passion for working with female clients launched SignatureWOMEN. A new advisor to the firm with philanthropic experience brought about SignatureGENEROSITY, a cross-cutting community. We wanted to make our services highly relevant for specific clients and show them we understand where they are coming from. Doug Liptak Specialization has helped the firm reach approximately $2.4 billion in AUM, with average annual growth being about 17% in both AUM and revenue over the past five years. 8 STEP 2: CUSTOMIZE MESSAGES Each SignatureFD community speaks to the unique needs of its members. For example, the team at SignatureLAW positions itself as specialists for specialists, taking care of wealth management issues for busy attorneys. This includes helping to maximize law firm benefits, pension payouts in retirement, and other issues important for these time-constrained professionals. As a successful attorney, your time is one of your most valuable assets. Don t waste it managing details that can be outsourced. SignatureLAW 8 SignatureFD,

7 STEP 3: MAXIMIZE IMPACT WITH MULTICHANNEL MARKETING Innovative experiences are valued by the firm s community members and, for the past three years, the team has been focused on building a lineup of unique events. More than 30 events were arranged last year: SignatureEXEC hosted an event on travel, security, and safety. The first day was for executives and the second for human resources professionals. SignatureWOMEN encouraged health and wellness within the women s community by offering a warm yoga class. SignatureGENEROSITY took a handful of business owners to Ethiopia to meet an organization that looks for angel investors to support local opportunities. Social media is one avenue the firm uses to share its events with clients and COIs, sharing photos that capture the experience. Tweets are personal, to touch a chord with readers who are similar to community members. A corporate brochure and customized fact sheets for each community are posted on the firm s website and used with clients and COIs, helping these important referral sources understand who the company can best serve. The team is now focused on further enhancing its social media strategies to gain more recognition for the events, which play a central role in the firm s outreach initiatives. JOYN Advisors STEP 1: BE SPECIFIC ABOUT WHO YOU SERVE David Geller, Co-founder and CEO of JOYN (formerly known as GV Financial Advisors), has been in the financial services industry since 1991, and he and his brother formed an RIA in About 15 years later, he was taken aback by a study from Princeton University 9 that suggested that each dollar earned above $75,000 a year ($81,000 in 2015) didn t create a corresponding increase in happiness yet, his job was helping clients accumulate wealth. This set him on a track to find a different way to speak about money. David spent a number of years working on a new concept called Behavioral Wealth Management that s designed to help people make better decisions during stressful situations. Individuals in transition are most receptive to JOYN s message, since that s when they are likely to be anxious and may make poor choices. We target a very specific type of person who will appreciate this unique approach. David Geller One target group is business owners looking to get liquidity. A PricewaterhouseCoopers study 10 revealed that 75% of owners who sold regretted their decision a year later, and only 5% were happy with their net proceeds. JOYN s Business Liquidity Services describes many ways to get liquidity without selling, helping clients choose a path that best fits their personal and professional goals. The firm also targets people looking to change careers another stressful time of life. This intense focus has helped to create a firm with over $1.2 billion in AUM.11 9 Daniel Kahneman and Angus Deaton, High income improves evaluation of life but not emotional well-being, Center for Health and Wellbeing, Princeton University, 2010, pnas.org/content/107/38/16489.full.pdf. 10 Exit Planning Institute study of former business owners, , PwC. 11 JOYN,

8 STEP 2: CUSTOMIZE MESSAGES JOYN s story talks about people feeling anxious about the market, a particular investment, or something much bigger, like a major life decision. It emphasizes the team s ability to help guide clients through different options, and evaluate how their choices may impact life goals, finances, and priorities. This complements the firm s broader wealth management services and understanding of tax, investment, and planning issues often encountered during major life events. We don t stop at standard discussions about your financial goals and investments. We incorporate the science of stress and decisions along with our life event experience to help you lower your anxiety, evaluate more choices, feel confident in your decisions, and ENJOY what you ve worked so hard to build. JOYN STEP 3: MAXIMIZE IMPACT WITH MULTICHANNEL MARKETING The firm s website is central to its client acquisition strategy and, like oxygen Financial, is packed with information to help visitors go through the buying journey on their own. The firm s outreach strategy includes: A book written by David titled Wealth and Happiness that explores how the rich can often be emotionally poor. It has provided an excellent platform for speeches, articles, and more. 12 A workshop on wealth and happiness complemented the book when it was released. This expanded into a series of luncheons and workshops that play a large part in helping to build the business. Topics aimed at the target audiences include I ve Had It Up to Here with My Lucrative Career and Diversify Your Wealth Beyond Your Business. 12 Extensive digital marketing through social media sites gets a full house at each event. This is being further refined to better understand the profile of workshop attendees who turn into clients and which social sites generated these leads. Speaking engagements at Tiger 21, a peerto-peer learning network for high-net-worth investors, help David stay visible with prospects. The firm has just invested in a marketing automation system to create, deploy, and manage online outreach campaigns. This will be linked to its customer relationship management (CRM) system to track and nurture leads. For example, executives who visit the website will have their details automatically entered into the CRM system and will receive articles and blogs on pertinent business issues. We want our website to be a living, breathing lead generator. We try to drive as much traffic there as possible and actively monitor visitors. David Geller 12JOYN,

9 Take Steps to Own Your Space The advisory industry is in a period of significant change on many fronts. This definitely calls for a new way of reaching out to prospects to be found and heard. Ross Ozer, Vice President, Fidelity s Practice Management and Consulting Group Are you interested in owning your space? If so, consider the three steps outlined in this paper to get started. 1. Be specific about who you serve. Perhaps begin by evaluating your business, and see where it takes you. Or, determine if the expertise and passions of your advisors could result in specialty areas, like Doug Liptak and his team did at SignatureFD. 2. Customize messages. Take the time to really understand the needs and challenges of your specialty areas so you can tailor a message that puts target audiences in the story. 3. Maximize impact with multichannel marketing. Start by maximizing your Web presence so it clearly amplifies your specialty areas. Focus on your content strategy and determine the priority channels that will have the biggest impact on your business development activities, recognizing that this may vary depending on the target market. Also, hone in on the right networks and venues, in order to be visible to COIs. Fidelity s Client Resource Center provides a wealth of articles, white papers, guides, and videos. The examples listed below can help you with crafting a differentiated story for your firm, boosting the appeal of your website, and taking all your digital communications to a new level. Firm Story Development Guide Website Development and Social Media Publishing Best Practices Guide Capitalize on the Power of Videos Guide Building a Strong Online Presence: Best Practices for Advisors to Consider 9

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