The Next Generation of Financial Marketing is Here

May 29, 2023 | Financial

Marketing Blog

The financial marketing landscape is changing, and next-generation financial services have arrived. New technologies, new regulations, and new customer expectations drive this change. As a result, financial marketers need to adopt new strategies and tactics to reach and engage their target audiences. But what does that mean for financial advisors and how they reach clients? How can they adjust and adapt? Let’s take a look at financial advisor marketing solutions.

The Rise of Digital Channels

One of the most critical trends in the next generation of financial marketing is the rise of digital channels. Consumers are using digital means to research and purchase everything, including financial products and services. As a result, financial advisors need to ensure that their marketing efforts are optimized. This includes using mobile-friendly websites and apps, creating engaging content for social media, and running targeted digital advertising campaigns.

Digital channels have already changed how consumers interact with businesses, and that trend isn’t slowing down. What benefits are there to digital advertising as a financial advisor? And what are the downsides?

Increased reach and engagement

Digital channels allow businesses to reach a wider audience and engage with them in more meaningful ways than ever before. For example, social media platforms like Facebook and Twitter allow businesses to connect with customers personally and build relationships.

One thing contributing to the financial advisor industry’s growth is the influx of content marketing. Consumers are more educated than ever, and they research purchases long before committing. Next-generation financial advisors are producing sharable content that attracts and engages customers. Top content for financial advisors includes blog posts, articles, infographics, videos, and worksheets.

And let’s not forget the introduction of artificial intelligence (AI) into the marketing landscape. While AI likely won’t take over search engines any time soon, they are making waves in areas of chatbots, personalization, and analytics. And AI will only grow and become more commonplace in financial advisor marketing in the year to come.

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Increased competition

More advisors using digital channels has led to increased competition. Businesses must be creative and innovative to stand out from the competition. And there’s no longer an option of being online. If your business isn’t active on social media and doesn’t have a mobile-friendly website, you’ll be losing out on prospects before they even get the chance to meet you.

Email marketing

Email is one of the most effective and cheapest marketing tools available. It’s also a great way to stay in touch with customers and promote new products and services. By staying in contact, businesses can ensure higher customer retention and continue to nurture prospects that aren’t ready to convert. Not sure where to start? Try newsletters, special offers, and event invitations.

SEO for website traffic

If your business isn’t using search engine optimization (SEO) to improve website traffic, you’re way behind the curve. SEO is the process of optimizing a website so that it ranks higher in search engine results pages (SERPs). Plus, a search tool is likely the first place your prospects will look when researching financial consultants. And your website needs to be right up top!

PPC digital ads

Pay-per-click (PPC) advertising is an efficient way for financial advisors to drive traffic to their websites. Since it’s a type of performance marketing, businesses only pay when someone clicks on the ad. That makes it a very cost-effective marketing technique. PPC advertising is a great way to quickly drive traffic to your website and meet with more interested prospects.

Overall, the rise of digital channels is a positive development for marketing. It provides businesses with new opportunities to reach and engage with customers, collect data, and personalize marketing messages. However, it also means companies must be more creative and innovative to succeed.

Importance of Data-Driven Marketing

Another important trend is the growing importance of data-driven marketing. Digital channels provide businesses with a wealth of data that can be used to improve marketing campaigns. Because these platforms have so much user data at their fingertips, businesses can track and retarget website traffic, identify customer interests, and measure the effectiveness of marketing campaigns.

More targeted marketing

Data-driven multichannel marketing allows businesses to target their marketing campaigns to specific groups of customers. This can be done by using demographic data, such as age, gender, and location, or by using behavioral data, such as past purchase history and website activity. By targeting their marketing campaigns more effectively, businesses can reach the right customers with the right message at the right time.

More personalized marketing

Plus, digital marketing allows businesses to personalize their messages further and offer individual solutions based on their search history and social media likes. With performance marketing, next-gen financial planning can be more cost-effective and efficient. What information can you use? Digital marketing can include customer data, such as name, email address, and purchase history, to create personalized messages and offers. By personalizing their marketing campaigns, businesses can build stronger customer relationships and increase customer loyalty.

More effective marketing campaigns

By tracking the results of your marketing campaigns, businesses can see what is working and what is not. This information can then be used to improve future marketing campaigns.

Data is changing the way businesses market their products and services. Companies can create more targeted and effective marketing campaigns by using data to track customer behavior and preferences. This can lead to increased sales, improved customer satisfaction, and a stronger brand reputation.

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Shifts in Regulations

Finally, next-generation financial marketers must be aware of the changing regulatory landscape. The financial industry is heavily regulated, and new regulations are constantly being introduced.

Increased compliance requirements

Financial advisors face increased compliance requirements as regulators seek to protect investors from fraud and abuse. These requirements can be costly and time-consuming to implement, and they can add a layer of complexity to the financial advisor’s job. To stay effective, advisors must stay up-to-date on the latest regulations and trends. This can be challenging, as the financial industry is complex and ever-changing.

Here are some specific examples of how regulatory changes are affecting financial advisors:

  • The Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act was passed in 2010 in response to the financial crisis of 2008. The act imposed a number of new regulations on financial institutions, including financial advisors. These regulations have made it more costly and time-consuming for financial advisors to do their jobs.
  • The Regulation Best Interest (Reg BI) rule. Reg BI was adopted by the Securities and Exchange Commission (SEC) in 2019. The rule requires financial advisors to act in the best interests of their clients when making investment recommendations. This has added a layer of complexity to the financial advisor’s job, as they now need to be more careful about the products and services they recommend to their clients.
  • The rise of robo-advisors. Robo-advisors are automated investment services that use algorithms to provide financial advice to clients. Robo-advisors are becoming increasingly popular as they offer a low-cost alternative to traditional financial advice. This pressures financial advisors to compete on price and provide more value-added services.

Overall, regulatory changes are having a significant impact on financial advisors. These changes are making it more challenging and costly for financial advisors to do their jobs and making it more difficult for them to compete with other firms.

Next-Gen Financial Marketing Wrap Up

The next generation of financial marketing will be characterized by innovation, agility, and data-driven decision-making. Financial marketers who embrace these trends will be well-positioned to succeed in the years to come.

But you don’t have to travel this road alone. There is massive financial advisor industry growth thanks to digital marketing solutions, and when you partner with LeadingResponse, you’ll have a team of experts at your side. From financial seminars to webinars to one-on-one appointments, our marketing consultants can keep your firm successful and growing. When you’re ready, let’s get started.

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