The financial services sector is gradually emerging from the economic downturn caused by the COVID-19 pandemic. Experts believe that advisors will need to approach marketing very differently, as trends have shifted and the pre-pandemic approaches will no longer work.
Perhaps the most significant of the financial services marketing trends we’re seeing is the growth of digital communication. However, there are others. Here’s where we predict the industry is headed for the rest of 2021 and beyond.
That’s right – we’re halfway through the year already.
Marketing trends
The financial services industry is moving away from old-school advertising on radio, TV and billboards in favor of online promotions. While direct mail is far from dead, it’s being used more strategically than it was pre-pandemic.
Which brings us to the growing use of multichannel campaigns designed to reach a wider audience than traditional or digital marketing alone can do by themselves. In a recent study, these campaigns saw a nearly 19% engagement rate, while single-channel campaigns had a 5.4% engagement rate.
LeadingResponse helps advisors create such campaigns. Our marketing solutions can be used to tailor messaging to prospects and current clients. We would love to create an omnichannel approach for you. Discover how we do it.
Technology trends
One of the more striking trends in financial services is the adaptation of artificial intelligence. AI continues to gain ground with machine learning and website chatbots, which serve a useful purpose by answering basic questions. Chatbots are popular because they free up advisors and staff from having to manage that role themselves.
Now that consumers are more comfortable with virtual meetings and events, advisors will see fewer prospects and clients in person. With more and more people using smart phones and other mobile devices, savvy advisors need to change their processes to accommodate them.
Workforce trends
The U.S. Bureau of Labor Statistics reports there were 263,000 financial advisors as of 2019. Furthermore, BLS expects the industry to grow between 2019 and 2029 by 4%, adding 11,600 new jobs. Median pay in 2020 was $89,330 per year.
As for financial services companies, many will continue to allow employees to work remotely. Others are adapting a hybrid model, in which an employee works part of the time in the office and part of the time at home.
Before the pandemic, only 29% of employers had 60% or more employees working from home at least one day a week.
Now, 69% expect at least three-fifths of their workforce to telecommute at least once a week. Workers, too, are embracing this shift. For most of them, it was prompted by the COVID-19 pandemic.
The only constant is change
Change is happening at a more rapid pace than ever before. To be sure, the industry will continue to evolve through 2021 and into 2022. At that time, additional financial services trends will likely emerge.
Advisors rely on LeadingResponse to attract, engage and acquire new customers using a variety of multichannel strategies. Learn more about how we partner with advisors to help them grow their businesses.
