What is Wealth Management Marketing?
Wealth management marketing is the process of promoting wealth management services through marketing channels. It is used by both individual wealth managers and firms to promote their offering and acquire new clients; this covers a wide “funnel” of activities – from identifying promising prospects to generating, nurturing, and ultimately converting leads into paying clients.
3 Unique Marketing Challenges for Wealth Managers
Wealth managers face three specific hurdles when marketing their firm and services:
1. Appealing to HNWI AudiencesWealth managers know better than anybody that the high-net-worth individuals (HNWI) they serve have different needs and interests than other demographics. They place a greater emphasis on personal relationships and exclusivity, which has a few implications:
- Many traditional “mass media” approaches are less effective
- Personalization and a “human touch” are more important
- The “nurture cycle” during which prospects learn about your firm is likely to be protracted, with clients wanting a lot of information
This makes consistently effective marketing harder to achieve – with a heavy time and financial commitment require to acquire new clients.
2. Changing Industry ExpectationsWealth management marketing has historically been targeted at older white males, but this is no longer acceptable – and doesn’t reach the target audience effectively. Industry experts argue that increasing diversity and avoiding “one size fits all” marketing is key to appealing to new audiences.
This creates a problem for many firms which rely on legacy approaches to marketing – from in-person networking events to direct mail. Many still believe relying on referrals from “centers of influence” (COIs) is enough to drive their growth – even as more HNWIs look to digital channels to find and research financial services.
3. Lack of Digital InfrastructureThe emphasis on tradition has made many wealth managers slow to adopt digital marketing. This is not to say they haven’t taken steps in the right direction: many have a social media presence, run marketing webinars and use email marketing. The problem is they don’t have a strong enough foundation in place to produce reliable results from these channels.
This manifests in several ways:
- Data Limitations: Many wealth managers don’t capture key marketing data, such as how prospects behave on their website or engage with their content; others simply store it in silos that make the information unusable. This makes key digital strategies - like content personalization and targeted messaging - impossible to execute effectively.
- Manual Processes: Repetitive and time-sensitive marketing activities like sending emails to book meetings or share research are often still done manually – wasting precious time and resources.
- Wasted Leads: The digital “funnel” is often so poorly optimized that firms often spend a lot of time and money attracting promising leads – only to stop engaging with them and make them go “cold.”
The net result? Wealth managers are missing out on opportunities to improve both the impact and efficiency of their marketing. But, given that many firms are increasing tech spend, there is a powerful case to be made that a chunk of that investment should be focused on marketing.
Why Should Wealth Managers Invest in Marketing?
The wealth management industry is in the midst of a seizing shift, with McKinsey’s latest research showing that digital channels are expected to outperform even traditional bedrock services in the coming years and a staggering transfer of wealth on the horizon. An investment in marketing today is therefore vital to:
- Promote New Revenue Streams: The McKinsey research cited above notes that the industry’s growth has declined in recent years, placing pressure on firms to innovate. Their advice was that firms should expand their offering and target new demographics and client pools – both of which require marketing to promote and build trust.
- Attract Younger HNWIs: The “Great Wealth Transfer” is coming, with $84 trillion set to be inherited by 2045. This will force your firm to rethink its client acquisition, as younger HNWI are less impressed with legacy names and more likely to look for financial guidance on social media.
- Increase (or Retain) Fees: Wealth management profits have dipped in recent years. Clients increasingly expect more services for the same standard 1% rate, which explains why many advisors’ total earnings have taken a turn – especially when you consider the cost of providing extra services like estate planning or manager research. Marketing is key to combat that trend, helping to differentiate your offering and create intangible value for which clients are willing to pay more.
Ultimately, wealth managers need marketing to combat increased competition and a rapidly changing landscape which puts their very operating model under threat. But this is not simply a “survival” strategy – and there are reasons to think the future is very bright.
Proven Benefits of Marketing for Wealth Managers
While research is limited, there are two clear findings on wealth management marketing:
- Reduced Costs: Research shows that the right marketing can cut WM client acquisition costs to 70-80 basis points, helping to combat growing operating expenses and pressure on client fees.
- Improved Firm Performance: The Financial Times reports that firms with a “strong personal connection” with clients financially outperform other firms – and this is often driven by effective marketing strategies.
This validates our own experience working with wealth management firms, where a relatively small marketing investment reliably returns multiple X ROI – especially when the right foundations are in place to support campaigns.
But what exactly should wealth managers do to make their marketing investment go further? And how can they ensure their efforts are sustainable?
There are four basic steps to set your firm up for marketing success:
1. Define Your Market Niche(s)
Your marketing must be built on a power “value proposition,” which consists of what you offer and to whom you offer it. This should lead to the establishment of a clear market niche on which you can focus your marketing – and deliver more efficient returns.
Most agencies present selecting a market niche as “pre-marketing” - something you need before you start marketing. But we believe marketing principles should be baked into this foundational process through:
- Differentiation: Look for ways you can offer unique value to your niche. Do you have a specific personal connection or experience with these people? Do your services and operating model stand out against other firms in the market?
- Specificity: Some marketers have split HNWIs into 10 discreet groups, but we recommend you avoid “generic” approaches and focus on hyper-specificity. Your niche shouldn’t just be “tax efficiency” or “family planning;” you need a concrete and compelling sales pitch that makes clear exactly how you offer more value to other firms.
2. Understand Your Audience
The next step is to do a comprehensive deep dive to understand exactly how your target audience behaves online and what their values and needs are. Key factors here include:
- Digital Channels: The average HNWI uses at least 3 digital devices each day – which specific channels do they use? Are they active on LinkedIn, or do they still prefer traditional communication methods from wealth managers? While digital channels are convenient and scalable, the costly signalling of in-person meetings and mail-outs can help wealth managers stand out.
- Trust Signals: Wealth management is all about trust – but what does your specific audience care about? Where do they get their news? Do they trust influencers, industry experts, or their peers to get reliable investment and financial guidance?
- Emotional Needs: Effective marketing leans into “pain points” - the fears and desires that keep your audience up at night. How do your target segments feel about retirement? Do they care more about legacy or new worth?
However, don’t limit yourself to these factors. Our wealth management clients are often shocked by how rigorous the audience research process is – but are more surprised by the marketing results it inevitably helps them produce.
The more you know about your niche, the better you can anticipate their needs, address their concerns, and deliver value through your marketing.
3. Build a Brand Identity
Your digital marketing must leave a lasting impression - and that means your audience must be able to immediately identify your firm.
Use your understanding of the audience to develop a strong brand identity, including:
- Visual Assets: A professional logo, consistent color palette, and high-quality imagery that reflects sophistication and trust
- Messaging Assets: A strong tone of voice (TOV) that tells your audience who you are and what you stand for, along with a comprehensive messaging framework that allows you to consistently convey your firm’s expertise, values, and unique selling points.
Of course, some firms will already have established brand elements. While you can do a comprehensive overhaul and start from scratch, the best approach here is to:
- Identify the elements of your existing brand that contain real equity – i.e., that clients respond to positively
- Refine and revise all other elements to better accentuate and match those core elements
4. Create a Robust Digital Infrastructure
Your digital infrastructure is the final piece of the puzzle, allowing you to bring leads into a complete marketing ecosystem – and nurture them toward a deal faster. There are three basic elements to consider:
- Website: A user-friendly, mobile-optimized site that showcases your services, provides thought leadership content, and includes clear calls to action for lead generation. This works as the “central node” of your digital marketing strategy, where most campaigns will ultimately point toward – and where sales conversions are most likely to be made.
- Social Media: Active and professional profiles on platforms where your niche is present, such as LinkedIn for networking or Instagram for showcasing lifestyle-related content.
- CRM System: A centralized Customer Relationship Management system to track leads, personalize outreach, and nurture relationships effectively. We recommend HubSpot as the most comprehensive, user-friendly and versatile option currently on the market for wealth managers and financial advisors.
These are not exhaustive; most wealth managers want to establish Google and LinkedIn Ads accounts, leverage marketing automation, and put various other tools into place over time. But these are the non-negotiable foundations you need to appear “fully online” and start leveraging essential digital marketing channels.
3. Social Media
Social media platforms like LinkedIn are vital for wealth managers to build an online following. Nearly 50% of HNWIs use LinkedIn – with over half of them logging in every week. Posting reliably informative content that speaks to their needs will build trust as well as generate leads and referrals.
ProperExpression Tips:
- Use Individual Accounts: While business accounts can gain traction, LinkedIn is far more valuable as a means of building personal brands and connecting with prospects and clients at a personal level. Use in-app video whenever possible, as this is the most effective format for personal branding – and the most likely to generate strong engagement.
- Be Authentic: The last year has seen a rise in AI-generated social media content which could seriously harm your brand. HNWIs are not interested in high-volume, low-value information; they want to hear about your real opinions on the market and investment philosophy.
4. Pay-per-Click Advertising
Pay-per-click advertising includes digital ads on Google, LinkedIn, and other platforms to promote your services and content. This can be a powerful way to promote your content or webinars, as well as reach hyper-specific target audiences with carefully tailored messages.
ProperExpression Tips:
- Promote Gated Content: Wealth managers see the best results when using pay-per-click (PPC) ads to promote thought leadership content or webinars. Prospects will give you their contact details in exchange for your whitepaper or industry report – generating a potentially valuable lead.
- Never Stop Testing: PPC ads generate high volumes of performance data, which can be used to assess the efficacy of specific messaging or marketing tactics and refine your strategy. This can even be used to quickly evaluate how well new target segments respond to your messaging and iterate more effectively.
5. Email Marketing
Email marketing involves sending newsletters, educational content, and promotional offers directly to your leads’ and clients’ inboxes. This is one of the most efficient marketing channels available, letting you directly engage with prospects and clients at effectively zero cost.
ProperExpression Tips:
- Plug Funnel Gaps: Emails are the perfect way to fix “holes” in your funnel where marketing leads are not receiving communication and, therefore, often disengage with your firm. Create template sequences that are triggered via HubSpot when specific actions are taken by a prospect – and deliver timely, high-impact with just a tiny amount of effort upfront.
- Repurpose Emails: You can “kill two birds with one stone” by using the same content to both nurture leads and engage existing clients. A few simple changes, such as removing CTAs or revising the positioning, can make the same email applicable to both parties.
6. Search Engine Optimization (SEO)
Search engine optimization (SEO) is a process designed to help your website rank for relevant keywords on search engines. It generally takes at least 3 months of consistent work to produce results, but it can be a powerful source of organic traffic and inbound marketing leads.
ProperExpression Tips:
- Think Local: Most HNWIs want a wealth manager who lives close to them. Local SEO helps you rank for search terms related to your specific geography and can be quickly improved by editing your website and Google My Business page with relevant local terms and up-to-date information.
These six channels drive reliable results for wealth managers and should form the foundation of your digital marketing strategy. But for most individuals and firms, your best results will come from thoroughly assessing your existing marketing and specific niche – and pinpointing the exact channels you can generate the greatest competitive advantage.
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ProperExpression has helped numerous wealth managers like you generate new clients and maximize ROI with digital marketing. We know exactly what it takes to win your market and make your strategy more efficient – and we can quickly identify your “easy wins.”
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