When we launched the 'Practice Management Index' in 2022, we had no idea how quickly this tool would be adopted by thousands of Financial Advisors to quickly identify exactly what they need to do to make meaningful refinements in their business. As we step into 2024, financial advisors are witnessing a transformative shift, with the spotlight on embracing AI to refine operational efficiencies and enhance client engagement strategies; it is quite a time to be alive!

This year, success in the financial industry isn't just about the accumulation of years of experience or the size of one's team. It's increasingly about how effectively financial advisors run their business like a business.

Our 'Practice Management Trends Report for 2024' aims to dissect these evolving dynamics, spotlighting the pivotal "opportunity gaps" that we have identified from all the Financial Advisors that have completed the Practice Management Index Assessment in 2023...

Download the Report: Practice Management Trends Report 2024:  paretosys.co/pmi-24

Want to see where you stand and identify specific areas for improvement in your practice? Take the free Practice Management Index Assessment today!

** Take the PMI Assessment: paretosys.co/pmi **

With messaging, the key is brevity, specificity, and proprietary.

This involves:

• Choosing your target audience,
• Personalizing your marketing to resonate with them,
• Walking them through a proprietary process, and
• Sharing their experience using effective testimonials!

Learn more about elevating your brand in the "Always On" podcast, as Duncan speaks with Seth J. Diener, owner of Diener Money Management, and Alex Lerch, director of Oak & Stone Advisor Marketing.

They discuss how advisors can better focus their marketing efforts on their ideal audience " and then harness the power of AI during the implementation phase.

Tune in now, or download for: paretosys.co/AODM_ep55
 

Align your purpose with your platform for a fulfilling career & lasting impact!

Watch the full video on YouTube

Do you want to learn how to implement these financial advisor marketing & branding strategies? Speak with a Pareto Systems expert. 

Or learn more about our financial Advisor business coaching at paretosystems.com

Client retention is the strategy

Is your business growing as fast as you'd like? Or is Client churn taking a toll on your practice? These are a major challenge for financial advisors, but it doesn't have to be this way. 

Who are you really marketing to? 

Financial advisors often think of marketing as a tool solely for attracting new clients. But what if I told you that strong marketing is one of the keys to keeping your existing clients happy and loyal?

This article dives into the surprising truth about marketing for financial advisors: it's not just about acquiring new business, it's about nurturing the relationships you already have. Our experience from coaching financial advisors, has shown us that keeping your existing clients informed will also translate  into client referrals in the future.

The NOT SO Shocking Reason Clients Leave Their Financial Advisors (and How to Stop It)

What is the number one reason that clients leave their advisors? Studies show that a staggering 71% of clients leave their advisors due to a lack of communication [source: https://www.cerulli.com/research].

They feel out of the loop and unimportant. By the time this issue comes to light, during that dreaded exit meeting, it's often too late. 

Imagine this: Sarah, a young professional, finally felt confident enough to meet with a financial advisor. She met with Jeremy, who seemed knowledgeable and put together a solid financial plan. But after the initial investment, communication dwindled. Sarah received generic quarterly reports, but no explanation of market fluctuations or how they impacted her portfolio. Months turned into a year, and Sarah felt increasingly out of the loop. Feeling unimportant, Sarah started researching other advisors.

So, how do you prevent this scenario and keep your clients engaged? The answer is simple: consistent marketing.

Marketing for Client Retention: A Win-Win Situation

Think of financial advisor marketing as a two-way street. Yes, it helps you attract new prospects, but it also allows you to consistently communicate with your current clients.

Imagine your client is saying this, "I never felt like I understood what was happening with my money. Then I found Ann, who shares regular updates explaining market trends and how they might affect my portfolio. She even hosted a client webinar on retirement planning that was incredibly informative. It feels like she genuinely cares and wants me to be successful."

Every marketing touchpoint, from emails and social media posts to educational content and client events, is an opportunity to connect with your existing client base. By consistently delivering valuable content and reinforcing your brand message, you're reminding them why they chose you in the place.

The Power of Consistent Communication Builds Loyalty

The same marketing strategy you use to attract new clients can be equally effective in retaining your current business.

Take this Client Testimonial: "I've been working with David for over 10 years now. He doesn't just manage my investments; he takes the time to understand my goals and concerns. He sends regular newsletters with financial tips and even throws client appreciation events where we can socialize and learn more about the market. It feels like a true partnership." - Michael L., Business Owner

The key lies in ongoing communication. Don't rely solely on annual meetings to connect with your clients. Regular marketing efforts ensure they see you, hear from you, and stay informed about your approach. 

Consistent Marketing Means More Referrals

Imagine having a team of loyal clients who rave about your services and refer their friends and family. This is the power of effective marketing. 

By consistently showcasing your brand, values, and process through various channels (email, videos, social media, events), you become a trusted figure in your clients' minds. This consistency builds trust and makes you the go-to financial advisor for their network.

Related Articles:

• What is Branding? 
• The Subtle Power of Branding

The Key Takeaways for Financial Advisors

• Marketing is one of the Keys to Client Retention: Don't underestimate the power of marketing to keep your existing clients happy and engaged.
• Brand Consistency is a must: Clearly communicate your people, practice and process through all marketing materials.
• Multi-Channel Marketing Communication is Essential: Utilize a variety of channels (email marketing, social media marketing, etc.) to reach your clients.
• Content is King (or Queen): Tailor your marketing content to resonate with your ideal client and their financial goals and interests. We recommend AdvisorStream as a turnkey marketing tool for Financial Advisors.
• Focus on Building Relationships: Marketing is all about nurturing trust and connection with your clients.

By prioritizing consistent communication and building strong relationships, you can combat client churn and ensure your financial advisor business thrives. Let effective marketing be your secret weapon for client retention.

Contributed by: Duncan MacPherson, author, speaker and Financial Advisor Coach

Do you want to learn how to implement these financial advisor marketing & branding strategies? Speak with a Pareto Systems expert. 

Or learn more about our financial Advisor business coaching at paretosystems.com

Are you a financial advisor seeking a more fulfilling career? 

Discover the concept of Ikigai ("reason for being") and how to find your "blue square" - the intersection of passion, professional expertise, and economic needs. Learn strategies to identify and eliminate draining clients, creating a balanced and enriching career path.

If you like this video, check out out Duncan's YouTube Channel "Duncan MacPherson", and Subscribe for videos like this and much more. His channel is  dedicated to helping Financial Advisors improve client relationships, create a steady stream of quality referrals, and optimize business strategies. Don't miss out on valuable insights to take your practice to the next level! YouTube Link: www.youtube.com/@Dmac8020 
 

Struggling with writer's block and wasting time on notes? Discover how Financial Advisors are using AI to write content, summarize meetings, and boost efficiency. Watch to learn how ChatGPT and AI can transform your practice!

This is an excerpt from episode 55 of the "Always On with Duncan MacPherson" podcast featuring Seth Diener, owner of Diener Money Management, and Alex Lerch, director of Oak & Stone Advisor Marketing.

Stream the new episode "The Future of Branding and Client Acquisition" by clicking here: https://paretosys.co/AODM_ep55

Reframing/reinforcing your value and garnering a newfound appreciation among them is a great way to increase testimonials and referrals.

Learn how to effectively market to your current clients with actionable examples in the Always On podcast featuring guests Seth Diener and Alex Lerch: paretosys.co/AODM_ep55

This video reveals a game-changing strategy many financial advisors are missing.

In this video, you'll learn:

• How a recent SEC rule change allows you to leverage client testimonials for marketing (and why it's a missed opportunity if you're not doing it).
• Actionable steps to collect powerful testimonials from your clients (including scripts and landing page creation).
• The surprising benefit of testimonials that goes beyond attracting new clients (hint: it strengthens existing client relationships and boosts referrals!).
• How testimonials help you stand out and build trust with your ideal clients.

Stop wondering if you're providing enough value. See how client testimonials become a crystal-clear signal that validates your work and fuels your purpose.

This video is perfect for financial advisors who want to:

• Grow their business through referrals.
• Increase client trust and credibility.
• Attract their ideal clients.
• Strengthen client relationships.

Ready to unlock the power of client testimonials? Watch now!

This is an excerpt from episode 55 of the ?Always On with Duncan MacPherson?s podcast featuring Seth Diener, owner of Diener Money Management, and Alex Lerch, director of Oak & Stone Advisor Marketing.

Stream the new episode "The Future of Branding and Client Acquisition" by clicking here: paretosys.co/AODM_ep55

Financial Advisor Branding: The Key to Long-Term ROI 

Advisors frequently ask me which marketing strategies are best for client acquisition. And while there is a place for some marketing strategies and campaigns, often I will steer the conversation to instead discuss the power of branding, and why it can be more effective than traditional marketing over the long haul.

Marketing is what you say to your clients, partners and prospects. Branding is what they hear. Furthermore, marketing tends to be campaign driven and doesn't have the staying power of branding which is typically on-going and part of your habits and rituals. To use the universe as a metaphor, marketing is like a shooting star - very fleeting. Branding is more of the steady burner - something that endures.

As a financial advisor you are in the knowledge for profit business. You think for a living. You aren't selling tangibles. You are promoting the promise of the future. That can be abstract and there are a lot of things out of your control. Branding helps take the abstract nature of what you do, and makes it easier to understand and appreciate.

That being said, all of your communications take time to sink in and be absorbed. Keep in mind that your MVP's (Most Valued Prospects) already have another financial provider. You are trying to position yourself as #2 and create a nagging feeling that they should consider their options. With existing clients, you want to competitor-proof those relationships, gain their full empowerment as unmet needs become apparent, and earn their endorsements. Endorsements are the distinction between a client and an advocate, but earning advocacy takes time.

Facts Tell, Stories Sell

Advocacy is created when you make it easy for your clients and partners to talk about you the messenger, not just your message. One simple example of branding is the use of coins in your client communications. I know of several advisors who now send a sterling silver dollar in a handsome case to pay tribute to a client who has referred a friend or family member. The coin is symbolic, and the client can hold it in their hands. Money and investing has become so virtual that the coin impact-fully snaps clients out of their fog and reminds them that money can be tangible and beautiful. It has immense shelf-life and anchors your relationship every time they look at it.

The Trojan Horse

Building on that, if you want to position yourself in the hearts and minds of the next generation - and throughout your clients' entire family trees for that matter - you can send your clients' children a penny beautifully framed with a reminder of the power of compounding noted on the back of the frame, as a birthday gift. You have undoubtedly seen the example of how a penny that compounds in value every day is worth over a million dollars after 30 days. It's a great metaphor to help a child understand the value of money, and the power of the rule of 72. I've heard of several examples of advisors who have made themselves indispensable to their clients and created incredible buzz throughout families, by creatively bringing value to their clients' kids when it comes to understanding money and investing. If you read The Millionaire Next Door by Tom Stanley, you already know the power of positioning yourself within the entire family.

Many of these same advisors have paper currency framed in their offices from countries ravaged by hyper-inflation. It is a conversation piece that can help you segue into a financial planning solution you provide.

Your Sense of Purpose is an Extension of Your Brand

These are just a few of the many tangible branding ideas available. They are simple and impactful but also remind you of the importance of what you do. Your legacy and purpose is tied directly to the value you bring people. The key is to inject some personality and creativity into your branding so that you aren't swimming in the pool of sameness with the countless other advisors who aren't memorable and are easy to dismiss.

Key takeaways from this article:

Branding is an investment in your future. A strong brand attracts high-value clients, fosters loyalty, and delivers sustainable ROI (Return on Investment).

Building a Strong Brand:

• Emphasize your purpose: Connect emotionally with clients by highlighting the value you bring.
• Craft a memorable identity: Inject personality and creativity into your branding.
• Deliver consistently: Exceed client expectations and ensure your brand reflects reality.

Creative Branding Strategies:

• Client appreciation gifts: Such as a tangible token like a silver dollar can strengthen client relationships.
• Family engagement: Educate children about money with age-appropriate gifts.
• Conversation starters: Use historical currency to initiate discussions about financial planning.

Continued Success!

Contributed by: Duncan MacPherson, author, speaker and Financial Advisor Coach

Related Articles:

What is Branding? The Subtle Power of Branding

Would you like to implement financial advisor coaching best practices? Speak with a Pareto Systems expert to learn more about our Coaching Programs. 

Discover the transformative strategies Alex employs to help financial advisors not only elevate their branding and stand out in a crowded market but also harness the power of client engagement through testimonials and reviews. Delving into the philosophy of "skating to where the puck is going," this discussion explores the dual importance of marketing for both attracting new clients and retaining current ones.

This is an excerpt from episode 55 of the Always On with Duncan MacPherson podcast featuring Seth Diener, owner of Diener Money Management, and Alex Lerch, director of Oak & Stone Advisor Marketing.

Stream the new episode of Always On by clicking here: paretosys.co/AODM_ep55