A Proven Marketing Strategy and Plan for Financial Advisors

A How-To Guide to Creating and Implementing a Comprehensive Advisor Marketing Strategy & Plan

Overview Presentation – April 2013

Authored and Published by The Entrepreneurial Advisor (David Finley)

david.finley@theentrepreneurialadvisor.com

The essence of strategy is in activities – choosing to perform activities differently or to perform different activities than rivals. Otherwise, a strategy is nothing more than a

marketing slogan that will not withstand the competition.

Michael E. Porter, 1986

Growth Driven

2

Growth Driven

3

1 2 3 5 4

Presentation Outline

About the Author

Why a better marketing strategy is needed

A new strategy and a better way forward

A framework for execution

Resources

© 2013 David Finley. No part of this content or the blog may be reproduced without prior written permission. All personal opinions expressed in this blog belong solely to David Finley and are not those of an employer, commercial sponsor or third party.

About the Author

Growth Driven

4

One of North America’s leading wealth management marketing and sales professionals

Meet the Author

David Marshall B. Finley

Growth Driven

5

Professional experience and highlights

My Professional Bio

Senior Vice-President and Branch Manager, Raymond James Ltd.* 2012 -

Senior Vice-President, Marketing and Advisor Services, Wellington West Capital Inc. 2006

Founder and CEO, Clearsight Wealth Management Inc. (Boutique Investment Dealer) 2002

Founder and President, Affinity Investments (Boutique Investment Dealer) 1995

Investment Executive at ScotiaMcLeod 1993

Affinity Investments was sold to Canada Trust (TD Financial Group) in 1998.

Clearsight Wealth Management was sold to Wellington West Capital Inc. in 2006.

•  Over 20 years of practical experience in the full service brokerage industry as a financial advisor, manager and owner.

•  My passion is marketing and business development for financial advisors, focused on helping them meaningfully grow their assets and revenue.

•  I’ve generated over 125,000 qualified leads of highly desirable and hard to reach investors.

•  I’ve implemented referral partnerships with American Express, The Globe and Mail and the University of Toronto (50+ since 1994).

•  I was an early adopter and leader in content marketing for advisors, including; videos, webinars and eNewsletters.

Growth Driven

*I’m currently the branch manager in the downtown Toronto office of Raymond James, known as ‘The 53rd’, for more information visit www.the53rd.com 6

About this Presentation A five step plan to building and implementing a proven marketing strategy and plan Growth Driven

1 2 3 4 5

Planning and Organization Clarify your goals Identify your resources Budget for ROI

Competitve Strategy Define your client niche Define your value (why you) Determine your positioning

Designing Brand Identity Find your big idea Utilize great design Determine your collaterals

Content and Marketing Hub Create great content Partner for leverage Utilize your website/blog as your marketing hub

Reaching your Target Audience Find your target clients Leverage the influencers Take an integrated approach

Marketing Strategy and Plan Framework

•  This presentation is designed to be an overview of content on The Entrepreneurial Advisor (www.theentrepreneurialadvisor.com). •  More specifically, over the next 3 months, I will delve into each topic in this presentation extensively, providing information, insight

and tools to help you build an effective marketing strategy and plan. While there is a great deal written about marketing for financial advisors, I have yet to see a comprehensive marketing strategy and plan framework that’s intuitive and useful.

•  I can be reached at david.finley@theentrepreneurialadvisor.com for any questions, feedback or comments you might have.

7

Why is a Better Marketing Strategy Needed?

Growth Driven

8

Marketing is a Priority

Areas where surveyed advisors seek to improve:

Marketing and Client Acquisition

Time Management

Client Communications

Knowledge of HNW Issues

Staff Development/Retention

Strategic Planning

Mentoring/Coaching Staff

Client Education

Technology/Data Access

Knowledge of Retiree Issues

Knowledge of Investment Options

Wide Range of Services

73%

15%

15%

30%

30%

28%

33%

33%

18%

57%

38%

50%

Source: “Advisor Benchmarking 2009: Annual Survey Results”, Rydex Advisor Benchmarking, 2009.

Marketing and Client Acquisition

Many Financial Advisors consider marketing a priority but lack the experience to execute effectively Growth Driven

9

… Growth is critical to any businesses success, without it, you quietly and slowly fade away.

More than ever, several factors are simultaneously converging to make advisor marketing more difficult

There is a Growth Dilemma

Advisor Growth

Dilemma

Unfolding structural shift in the industry; clients moving from accumulation to preservation and payout;

resulting in fewer assets in lower margin products.

Hyper-competitive oversupply of advisors (80,000+), all attempting to pursue a relatively small

cohort of high net worth clients.

Increasing regulatory and compliance requirements only to increase further in the years ahead, taxing more

time and resources on advisors.

Clear and meaningful differentiation among advisors not readily apparent to most

investors.

Increasing investor pushback and poor results to old prospecting methods forcing advisors

to adopt new forms of marketing.

Growth Driven

Wild market swings, scandals, negative media and a flat decade of performance causing

investors to rethink who should manage their money.

Declining direct client acquisition support from distribution and manufacturing

(ex. bank branch referrals).

Obtaining clients after they’ve reached high net worth status requires greater skill,

greater effort and significantly higher costs.

10

Results Haven’t Met Expectations

The advice channel in Canada spends

$1 Billion* annually in marketing and client acquisition costs.

Growth Driven A significant portion of marketing spend is not leveraged effectively or efficiently

Stop throwing money out the window. There’s a better way.

11 *This includes an estimate of costs incurred by advisors, firms and direct support from industry suppliers and manufacturers.

A New Strategy and a Better Way Forward

Growth Driven

12

Leveraging the best of the old with the best of the new

Build a Convergence-based Marketing Strategy Growth Driven

13

The Convergence

Marketing Strategy

The strategy outlined in this presentation is the convergence of two proven marketing tactics; referral networking and content marketing. It offers a systematic approach to generating word of mouth as a comprehensive marketing strategy. In a larger sense, it proposes a new and better way of

doing business.

Social Networks

Strategic Partners

SEO (Google)

Existing Clients

Community

Local Media

COI Networking

Ref

erra

l Net

wor

king

In-person Events

Articles / Blogs

Webinars

Email Newsletters

White Papers / Books

Case Studies

Video

Referral Networking Traditional marketing models generally go out and hunt for cl ients. They do it with advertising; they do it with cold calling; they do it with trade shows, etc. The emphasis in this model is moved from finding to being found. Working with a network of referral channels, you leverage the “influencers” within these groups who lead your target audience directly to you.

Content M

arketing

Content Marketing Authentic content that educates or is seen as valuable to your target audience and more importantly the influencers within that audience is the new currency of marketing. Yo u r n o - s t r i n g s - a t t a c h e d content allows you to break down built-in sales resistance, build trust and demonstrate expertise in your field. Content is the most trusted form of marketing.

Focus your marketing on where your target clients congregate

Leverage the Influence of Trusted Referral Networks Growth Driven

14

Importance in Finding Primary Financial Advisor

54.2%

30.1%

13.5%

4.4% 3.5% 3.2%

Accountants And

Lawyers

Referral from another

Client

Seminar or Conference

Read About Them in the

Press

Direct Mail

A Cold Call

N=1,417 affluent individuals; Russ Alan Prince and David A. Geracioti, “Cultivating The Middle Class Millionarie”, 2005

60%

50%

40%

30%

20%

10%

The greatest sources of affluent prospects are affluent clients and their professional advisors (collateral professionals such as accountants and lawyers). No other sources come close. These two methods have been the drivers of new client growth for decades. Other referral sources have also demonstrated success, including strategic partnerships, direct relationships with local journalists/media and more recently online social networks and organic search rankings (Google). The key is that all have influence with your target audience, through a direct recommendation, practice advocacy or online ranking. I strongly believe that you can build your entire marketing strategy around a set of formal referral networking tactics.

Social Networks SEO (Google)

Existing Clients Community Sponsorship

Local Media COI Networking (Accountants, etc.)

Strategic Partners

Trusted Referral Networks

Establish your authority in your chosen area of expertise

Content Marketing as the Driver Growth Driven

15

The most successful marketers today tend to be part marketer and part publisher. They generate an ongoing stream of high quality content to demonstrate their expertise. Content marketing is the process of creating video, blogs, articles, ebooks, how-to-guides, social media updates, picture galleries, infographics, webinars or other forms of media about your practice. Ultimately, you’re building a leadership position for your practice as a trusted resource in specific topics.

Selection Criteria Weighted Total

Overall expertise of advisor 91.0

Care advisor takes to identify needs 89.0

Investment management style 84.1

Trust in advisor 82.0

Discretion of advisor 81.1

Attentiveness of advisor 80.2

Advisor’s desire to establish long-term relationship 74.2

Reputation of advisor 65.2

Quality of proposals 55.1

Quality of presentations 51.9

Quality of promotional materials 33.9

Investment performance / track record 26.6

Selection Criteria of Affluent Individuals in Choosing Advisors

Source: Russ Alan Prince and Karen Maru File, Cultivating the Affluent

In-person Events

Articles / Blogs

Case Studies

Video

Dem

onstrate your Expertise

Books / White Papers

It’s the combination of the referral with the strength of quality content that drives growth

The Winning Combination Growth Driven

16

Traditional Marketing

New Marketing

Effective

Ineffective

Referrals from clients

and colleagues Referrals

from other service

providers (COIs)

Email Newsletters

Cold calls from financial

advisors

In-person seminars

Books and

eBooks

REFERRAL NETWORKING

ONLINE MARKETING

Strategic Partnerships

Articles and

Blogs

THE STRATEGY

Leveraging the best of the old with the best of

the new

REFERRAL NETWORKING + CONTENT MARKETING

A Framework to Execute

Growth Driven

17

Having a framework with an integrated structure is the critical starting point

The Entrepreneurial Advisor Marketing Framework

18

Growth Driven

4 Content-Rich

Website and Blog

1 Planning & Organization

2 Competitive Strategy

3 Brand Identity

and Voice

Search (SEO)

The Process Clarify your goals Identify your resources Budget for ROI

Identify your client niche Define your value (Why you?) Determine your positioning

Social Media

Find your big idea Utilize great design Determine your collaterals

5 Referral Networking

Platform

Create great content Partner for leverage Utilize your website/blog as your marketing hub

Strategic Partners

Existing Clients

COI Networking

Local Media

Community Involvement

Finding your clients Leverage the influencers Take an integrated approach

The Framework The following framework is a proven best-practices approach to creating and implementing a comprehensive marketing strategy and plan. It will help you identify your niche, position your practice successfully within that niche and effectively engage your target audience with the endorsement and advocacy of trusted referrals.

This framework guides advisors through a step-by-step process. It is made up of 5 core steps with 3 deliverables per step. Over the course of the next 3 months, I’ll be highlighting each deliverable, providing further insight with examples to help you with your strategy and plan. The information and commentary can be found on my blog at www.theentrepreneurialadvisor.com.

Where are you taking your business and why

Step One è Planning and Organization

What are your financial and leadership goals to elevate your practice?

•  What are your client goals this year? Do you

need one client, or 100?

•  Are you viewed as an expert in your field? Does the media come to you for insight?

•  If you hit your sales goals, how will that impact your team? Do you need more administrative help, producers, or more business development support?

What resources do you need to help execute your marketing plan?

•  You must first determine how much time and

energy you can commit to marketing.

•  You must then evaluate your internal resources, which include your team and firm capabilities.

•  If you need to reach beyond your team and firm to execute effectively, you’ll need to consider external resources, such as marketing agencies and web development firms.

What are you willing to invest to achieve your goals and objectives?

•  A conservative marketing budget should be 1 to

5% of your annual gross production.

•  If you’re planning on growing aggressively, you might need to consider upwards of 10 to 15%.

•  Alternatively, you can budget or invest to a specific goal or initiative.

“If you do not change direction, you may end up where you are heading.” – Lao Tzu

I. Clarify your goals II. Identify your resources III. Budget for ROI

Growth Driven

19

You are your biggest advantage Step Two è Competitive Strategy

Who is your ideal client and where and how are they influenced?

•  A niche enables you to stand out against the

competition who are usually generalists.

•  It is easier to become the go-to choice and authority within a niche market.

•  Referral partners are easier to find because you can work with those who also work within your niche, leveraging their networks and resources to build your practice.

Why you? What are the values that make you uniquely different?

•  Be crystal clear that your value proposition

belongs to you and you only.

•  It’s best built around your persona and not a product or firm. People buy from people.

•  Your value proposition must include your role, your skill sets (especially your top 3), proof (credentials, a book you author, etc.) and results you’ve delivered for clients.

How are you positioned relative to other top advisors?

•  Positioning is the battle to own a distinctive

place in your target market’s mind.

•  Define your competitive landscape (see example on next slide) and stake your claim.

•  With a defined niche and a clear unique value proposition you must now determine your positioning strategy that creates a point of reference in the marketplace about you.

“The art of marketing strategy is knowing how to take pieces from others’ success and creating your own.” – David Finley

I. Own your niche II. Define your value III. Determine your positioning

Growth Driven

20

Determine Your Positioning

Age of tree represents trend

Size of tree represents revenue

Standard Service

Premium Service

Investment Solutions

Wealth Solutions

Find the right market position and stake your claim Growth Driven

Positioning is about what makes you different and where you fit in the marketplace.

The positioning map above is for example purposes only. Advisors should consider the competitive landscape they wish to compete in and map accordingly. 21

Branding isn’t about market share, it’s about mindshare Step Three è Designing Brand Identity

What’s your one big idea, the central theme and essence of your brand?

•  You should have an idea or theme that captures

who you are and what you stand for.

•  The right idea can be translated into your overall marketing campaigns, including tag lines, logos, etc.

•  Ensure that whatever your big idea may be, it must align with every aspect of your business, including your solutions and service experience.

Are you investing sufficiently in the right creative and design?

•  The vast majority of advisors “go cheap” on

creative and design.

•  Great strategy and great ideas are often wasted by a poor image. First impressions matter!

•  Creative and design goes beyond brochures and websites. It includes how you and your team dress, your office set-up and even the language and tone you use on the phone.

What supporting tools and collaterals should you have to market your brand? •  Less is more. You should concentrate on

having the right collaterals for your audience.

•  They should reflect the quality of your practice and be updated on on a quarterly or semi-annual basis.

•  Look for collaterals that are “out of the box” and not simply the standard fare you see from most firms. If you can do a custom or premium website versus a template, do it.

“A brand image is not simply a trademark, a design, a slogan or an easily remembered picture. It is a studiously crafted personality profile of an individual, institution, corporation, product or service.” – Danie J. Boorstin

I. The big idea II. Great design and creative III. Packaging your brand

Growth Driven

22

Identify a single, big, unifying idea that inspires all stakeholders to get engaged

The Big Idea Growth Driven

23

Think Different – Arguably one of the best “big ideas” in history. When Steve Jobs returned to Apple in 1998 he needed an idea, a campaign that reflected the philosophy he thought had to be reinforced

within the company he once co-founded, but which was struggling at the time he came back … and the rest is history.

“Apple isn't like other companies. It doesn't follow the rules. And the essence of the company isn't any more complicated than that. And so was born Think different.”

- Ken Segall

What is your big idea that best captures you and what you stand for?

Produce valuable content that attracts your audience and engages them Step Four è Content and Marketing Hub

What is most relevant to your target audience?

•  Demonstrating your expertise through creating

great content is the most important marketing initiative you can do.

•  Leverage multiple forms of content, from traditional books and newsletters to online functionality such as blogs and webinars.

•  Find the right partners and support to help you create and publish your content. It is a very necessary but time consuming initiative.

Who can you leverage for both marketing and financial support?

•  Don’t go it alone on your content development.

Leverage third-parties as best you can.

•  Focus on both content production and financial support. Whether it’s sponsorship of an event with a speaker or economic considerations, align with the partners that will provide the best compliment and support to your efforts.

•  Use your firm, if they have a strong content production facility.

Is your current website a central hub for your content and prospecting?

•  Your website should be your primary hub of

content “housing”.

•  Go with a premium or customized website option if available from your firm. A template site makes you look like everyone else.

•  Ensure you have content pub l i sh ing funct iona l i ty bu i l t in to your webs i te environment, so it can be active and updated frequently.

“Content is marketing.” – David Finley

I. Create relevant content II. Partner for leverage III. A website as marketing hub

Growth Driven

24

Make your website and blog a destination as a marketing hub of valuable content Your Website as the Marketing Hub

Growth Driven

25

Promote yourself without pestering people

Step Five è Finding and Reaching Your Audience

Where do your clients congregate both online and offline?

•  I den t i f y where you ta rge t aud ience

congregates, both offline and online.

•  This should be a broad approach, ranging from community involement (clubs, charities, churches, etc.) to online networks such as LinkedIn and Facebook.

•  The foundation of where your cl ients congregate will ultimately help you identify which referral networks to build.

Who has the most influence with your target audience?

•  Who are the key influencers within each of your

target audience groups.

•  Is there an approach or relationship that you can uniquely build with these individuals and groups?

•  Make sure you clearly understand what matters most to these individuals and organizations to ensure you put your best foot forward.

What are the best methods and mediums to reaching this audience?

•  Your marketing channel strategy is entirely

based on how best to reach your audience.

•  Make sure each channel can leverage one another. For example, that your in-person events can then be translated online via video, pictures, etc.

•  Start small with two or three approaches, if you spread yourself too thin, you won’t get the most out of each approach.

Self-promotion is the key to advisor marketing success. Your goal is to be recognized as a leading authority in your chosen field. You must market yourself to achieve that.

I. Find your target clients II. Leverage the influencers III. Take an integrated approach

Growth Driven

26

The foundation of the trusted referral is your connection to those who can influence Leverage the Influencers

Growth Driven

27

A multi-dimensional referral networking strategy should be your primary means of reaching your target audience. It is generally the most effective and efficient model. Transferred trust is the power of the referral and why it’s so much easier and quicker for advisors to win business from referrals than any other method.

Referral Networking Model – Transferring Trust from Multiple Sources

Local Media COI Networks Existing Clients Strategic Partners Social Networks

In order to have the means to influence others, a person needs to be in touch regularly with other influential people and opinion leaders. You can be the most knowledgeable person in world about a particular topic, but if you are a loner and don’t interact with others very often it is hard for your ideas to spread. The size and breadth of your real world networks is central to your influence. A large network of people you interact with in your everyday life gives you the means to engage actively in the conversation.

Strategic joint ventures with organizations that represent your target audience. Affinity programs, sponsorships, co-branding initiatives, etc.

Build and leverage connections through key social networking platforms, including; LinkedIn, Facebook and Twitter.

Leveraging your most satisfied clients who also have the most influence. This should be approached in a formal manner and not left to chance.

Work with other professionals like accountants and lawyers.

Become a key content source for local media or relevant publications that align with your target clients interests.

Find your target audience through your networks

Follow the process and see the results

Summary

28

Growth Driven

4 Content-Rich

Website and Blog

1 Planning & Organization

2 Competitive Strategy

3 Brand Identity

and Voice

Search (SEO)

Social Media

5 Referral Networking

Platform

Strategic Partners

Existing Clients

COI Networking

Local Media

Community Involvement

… Please don’t hesitate to contact me at david.finley@theentrepreneurialadvisor.com.