Capitalizing on digital marketing is the key to growth for
RIAs and IBDs; survey shows
NEW
YORK, Dec. 14, 2022 /PRNewswire/ -- The
fourth-annual financial advisor marketing survey by global Fintech
leader, Broadridge Financial Solutions, Inc. (NYSE: BR),
reveals that 63% of advisors are actively seeking new clients but
only 43% are experiencing increases in inbound prospect requests.
Market volatility, increasing compliance and regulatory pressures,
and a competitive landscape for wealth management service
professionals continue to challenge Independent Broker-Dealers
(IBDs) and Registered Investment Advisors (RIAs) and requires them
to find innovative new solutions to generate business.
"It has been a challenging year for financial advisors, with
many struggling to adapt to new compliance and regulatory
guidelines, increased market volatility, and ongoing hiring and
talent retention challenges. Despite evidence that staying on
offense with a sharp marketing strategy yields business growth,
especially in volatile markets, we've seen advisors shift back to
defense and fail to allocate the right level of time, money and
effort to their marketing strategies," said Kevin Darlington, General Manager, Head of
Broadridge Advisor Solutions. "That said, digital media usage is a
bright spot and continues to show upward-trending success, as
advisors double down on digital strategies and maximize the use of
websites, LinkedIn and Facebook to generate leads."
Advisors With a Defined Marketing Strategy Land 2x More
Clients Annually
While advisors' average marketing spend continues to increase
($17,433 in 2022, up from
$16,090 in 2021), the percentage of
revenue allocated to marketing is down to an average of 3.1% in
2022, compared to 3.6% in 2021. In addition, only 10% of advisors
report being very satisfied with their marketing return on
investment (ROI), down from 15% in 2021. RIAs tend to allocate more
to marketing, spending $27,000
annually compared to $9,7000 by
IBDs.
Despite an increase in marketing spend, only 28% of advisors
have a defined marketing strategy (up slightly from 26% in 2021).
However, these advisors are far more likely to achieve better
business outcomes than their counterparts without a defined
marketing strategy. Seventy-six percent of advisors with a defined
marketing strategy feel confident (somewhat or very) in meeting
practice growth goals compared to those who do not (61%).
In addition, advisors with a defined marketing strategy have
onboarded more than two times the number of new clients in the past
12 months: an average of 41 new clients versus 17 for those without
a defined marketing strategy. Eighty-two percent of advisors report
that developing a marketing plan/strategy is the top challenge when
it comes to marketing activities, followed by finding the time for
marketing efforts (81%) and managing compliance (79%).
Social Media Use Successfully Yields Leads and New
Clients
Advisor success in converting social media leads to clients is
trending up, reaching 41% in 2022, an uptick from 34% in 2019.
Fifty-seven percent of advisors with a defined marketing strategy
converted a social media lead to a new client, compared to 36% of
those without a strategy.
Forty-one percent of advisors with a defined marketing strategy
had a social media lead convert to a client, while the majority of
advisors (61%) report that they feel their websites could be more
effective in generating leads. However, 31% percent of advisors
plan to spend more on their websites in the year ahead – the
highest spending allocation among all areas reported.
Other top tactics include using digital marketing to expand
their prospect pools. The percentage of advisors growing their
business outside their locale continues to increase (27% currently
servicing non-local clients, up from 24% in 2021), and younger
advisors are planning to take advantage of recent SEC marketing
regulatory updates, leaning into the idea of featuring testimonials
in their marketing (43% of advisors under the age of 45 compared to
30% generally).
Broadridge Wealth Platform
The Broadridge Wealth Platform is an open, component-based
ecosystem that redefines wealth management technology. With a
flexible, scalable platform powered by an aggregated data layer, it
is designed to help firms drive innovation, perform more
effectively at scale and deliver a digital, modernized client and
advisor experience.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with more than $5 billion in
revenues, provides the critical infrastructure that powers
investing, corporate governance and communications to enable better
financial lives. We deliver technology-driven solutions that drive
business transformation for banks, broker-dealers, asset and wealth
managers and public companies. Broadridge's infrastructure serves
as a global communications hub enabling corporate governance by
linking thousands of public companies and mutual funds to tens of
millions of individual and institutional investors around the
world. Our technology and operations platforms underpin the daily
trading of more than U.S. $9 trillion
of equities, fixed income and other securities globally. A
certified Great Place to Work®, Broadridge is part of
the S&P 500® Index, employing over 14,000
associates in 21 countries.
For more information about us and what we can do for you, please
visit www.broadridge.com.
Broadridge Contacts:
Investors:
Edings Thibault
Head of Investor Relations, Broadridge
broadridgeir@broadridge.com
Media:
Gregg
Rosenberg
Corporate Communications
Gregg.Rosenberg@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.