How Elite RIAs Market Their Businesses Successfully

Elite Marketing Tactics

Financial advisors wanting to thrive in today’s dynamic marketplace need to take a proactive approach to growing their businesses. This requires not just keeping current clients happy, but also attracting new clients. While many advisors understand the importance of marketing, it too often takes a back seat to other concerns. According to industry commentator Michael Kitces, most advisors spend less than 2% of their annual revenues on marketing—less than half of what industry experts recommend. Most of this spending also goes to appreciation events for existing clients, rather than for outreach to new ones.

Effective marketing starts with a strategic approach

To optimize your marketing spending, it’s worth taking some time to outline short- and long-term goals as well as strategies to pursue them. In considering how to allocate your marketing resources, some advisors recommend the 70/20/10 rule. In other words, you spend 70% of your marketing budget on strategies, such as client events, that have proven effective in the past. Another 20% might go to long-term marketing initiatives, such as reaching a new target audience or investing in digital content. Ten percent might go to something wholly new, such as web-based advertising. No matter what strategies you consider, have a clear idea of what you want to achieve and how you’ll measure success. Establish specific, relevant, and time-bound metrics for gauging the effectiveness of your efforts. For example, you might target growing your client base by 10% over the next year, or you might target 10 additional leads per month. Review progress regularly and be willing to change course if your efforts aren’t delivering the hoped for results.

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