One of the principal goals of marketing is to profitably drive revenue while distinguishing the firm for competitive advantage. One of the best way to drive revenue is to acquire new clients. In reviewing the findings of the 2010 FA Insight Study of Advisory Firms' “Growth by Design” analysis, a couple of clear patterns emerged:
- The need for marketing: 48% of new clients came from existing client referrals, meaning that over half of an advisor firm’s new clients resulted from some other aspect of their practice marketing efforts.
- Marketing matters: Firms that embraced a “growth by design” approach significantly outperformed their counterparts with annual growth rates that were 10% to 30% higher and operating profit margins that were 12% to 16% greater.
Generating qualified leads, nurturing those prospects through the consideration process and converting them to clients requires an integrated marketing approach. To be certain, the advisor plays a critical role in this process through their phone conversations, written correspondence and face-to-face meetings with each prospect.
As the “Growth by Design” study shows, a firm’s chances for success in acquiring new clients can be greatly enhanced with the development of a practice marketing plan. Having a marketing or practice development plan that defines the firm’s target audience, key value propositions as well as articulates the firm’s service offering in a clear and compelling manner allows for the effective allocation of a firm’s time and money.
Have a plan? Interested in a second opinion? Or are you looking for an efficient means of formalizing your marketing planning process?