The marketing and sales organizations of asset managers, insurance providers, broker-dealers, custodians, and other sources devote considerable resources to gain the attention and influence the attitudes and behaviors of financial advisors. The types of marketing communications and outreach actively directed to advisors range from established formats such as email, direct mail, and personal contact to newer approaches such as social media, mobile applications, and text messages. The challenges facing the marketing efforts of product providers and distributors is to create and deliver communications and messages that stand out in a highly cluttered marketplace while addressing the needs of a diverse and fragmented advisor population.
It is with this context that Practical Perspectives, a leading consulting and research firm, examines financial advisors and the communications outreach directed to them. This 76-page report builds on previous research to offer a detailed, data-driven examination of how to market effectively to advisors. This includes the impact of marketing outreach, the characteristics of the most useful and attention-grabbing contacts, the providers offering the most useful marketing communications, and how to overcome key barriers to increase the benefit derived from these marketing initiatives.
Key Topic Areas
Connecting with Financial Advisors
· How much marketing outreach do advisors typically receive and how likely are they to pay attention to these communications?
· What are the key sources of marketing outreach that advisors receive and how likely are advisors to consider these sources?
· Which formats of marketing outreach are advisors most likely to pay attention to and how has that been changing?
· What advisor actions are driven by marketing outreach and which forms of contact generate the most response?
· How has advisor exposure to marketing outreach changed in the past year?
Enhancing the Effectiveness of Marketing Outreach
· What are the key barriers to advisors paying attention to marketing outreach?
· What factors distinguish the most effective marketing outreach?
· Which specific firms are associated with the most effective marketing outreach?
· What changes can increase the likelihood advisors will pay attention to marketing outreach?
· How does marketing outreach from key sources compare to similar best-in-class contact from outside the industry?
The Benefits of Marketing Outreach to Advisors
· How much impact does marketing outreach have on advisors overall engagement with product and solutions providers?
· How much impact does marketing outreach have on advisor attitudes and behaviors such as consideration, loyalty, and interaction with providers?
· How do advisors differ in their needs and expectations of marketing outreach across major channels – RIAs, , Independent BDs, and Wirehouse/Regional BDs?
Ordering the Report
The study is available in PDF format for the subscription price of $4,750 and includes a presentation of key findings and implications. To order the complete 76-page, 47 exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and Methodology
Asset managers, insurance companies, broker-dealers, custodians, and other providers spend countless resources each year connecting with advisors. The intent of these outreach efforts is to capture the attention of advisors, build awareness, establish and enhance relationships, and generate new business. The types of marketing and sales communications actively directed to advisors vary widely ranging from more established formats such as email, direct mail, and personal contact to newer approaches such as social media and text messaging. Our goal in this report is to provide a data driven view that examines marketing and sales communications from the singular perspective of financial advisors. This in-depth report combines distinct research insights with practical, consulting oriented analysis. The report builds on similar research conducted in prior years. It is designed and written to provide relevant and actionable information for key constituents interested in how to be more effective when reaching out to advisors.
“Marketing Effectively to Financial Advisors – Insights and Opportunities 2018” examines the sources and forms of outreach directed to advisors and the types of approaches most likely to gain attention and generate action in a crowded marketplace. The analysis looks in detail at specific elements of marketing and sales outreach to advisors, including the volume of these outreach activities, the degree to which advisors engage with the contact they receive, and the characteristics and firms associated with the most useful communications. The report also provides a detailed analysis by key channels to help product providers and distributors develop and execute more targeted and effective communications oriented to advisor needs.
Among the key questions addressed in this report are:
· Which sources and formats of outreach are most likely to attract the attention of advisors?
· Which forms of contact do advisors consider most intrusive?
· How much consideration do advisors typically give to marketing/sales communications and contacts?
· What are the key barriers to gaining advisors attention?
· Which factors distinguish the communications and contacts most likely to attract advisor attention?
· What changes can providers make to increase the likelihood advisors will pay attention to their outreach?
· Which forms of outreach are most likely to cause advisors to act?
· What actions do advisors take arising from marketing and sales outreach?
· What firms have the most useful marketing communications and contacts?
· How do contacts from key sources compare to similar outreach advisors receive from best-in-class providers outside the financial services industry?
· What impact do marketing communications and contacts have on advisor attitudes and behavior?
· How have these factors and advisor behaviors changed over time?
This report is based on input from a broad cross-section of advisors across key channels including Full Service broker-dealers (comprised of wirehouse, regional, and national firms), Independent broker-dealers, and fee-based RIAs. In November 2017, advisors were asked to participate in an on-line survey regarding marketing/sales communications and contacts they receive in running their practice. Advisors were randomly solicited across all delivery channels. More than 700 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Marketing Outreach to Financial Advisors
A. How many marketing/sales communications and contacts do advisors receive?
B. What are the key sources of marketing/sales outreach directed to advisors?
C. How much consideration do advisors give to marketing/sales outreach?
D. What forms of marketing/sales outreach do advisors typically receive?
E. How likely are advisors to pay attention to marketing/sales outreach from key sources?
F. How likely are advisors to pay attention to marketing/sales outreach in various formats?
G. What advisor actions are driven by marketing/sales outreach?
H. How has advisor exposure to marketing/sales outreach changed in the past year?
Section IV: Enhancing the Effectiveness of Marketing/Sales Outreach
A. What are the most significant barriers to advisors paying attention to marketing/sales outreach?
B. What factors distinguish effective marketing/sales outreach?
C. Which firms are associated with the most useful marketing/sales outreach?
D. What changes can increase the likelihood advisors will pay attention to marketing/sales outreach?
E. How does marketing/sales outreach from key sources compare to best-in-class providers outside the financial services industry?
F. In their own words, what are the most important changes to get advisors to pay greater attention to marketing/sales outreach?
Section V: The Benefits of Marketing/Sales Outreach to Advisors
A. How much impact does marketing/sales outreach have on advisors?
B. To what extent does marketing/sales outreach influence advisor attitudes and behaviors?
Section VI: Characteristics of Advisors
Section VII: Implications and Outlook
List of Exhibits
Exhibit 1: Volume of Marketing/Sales Communications and Contacts Received Each Day
Exhibit 2: Volume of Marketing/Sales Communications and Contacts Received Daily by Channel
Exhibit 3: Volume of Marketing/Sales Communications from Key Sources Received Daily
Exhibit 4: 5 or More Marketing/Sales Communications Received Daily from Key Sources by Channel
Exhibit 5: Less than 5 Marketing/Sales Communications Received Daily from Key Sources by Channel
Exhibit 6: Percent of Marketing Communications Advisors Spend Time Reviewing
Exhibit 7: Percent of Marketing Communications Advisors Spend Time Reviewing by Channel
Exhibit 8: Time Spent Each Day on Marketing/Sales Outreach
Exhibit 9: Time Spent Each Day on Marketing/Sales Outreach by Channel
Exhibit 10: Percent of Marketing/Sales Outreach Received by Format
Exhibit 11: Percent of Marketing/Sales Outreach Received by Format by Channel
Exhibit 12: Likelihood of Paying Attention to Marketing/Sales Outreach from Key Sources
Exhibit 13: Likelihood of Paying Attention to Marketing/Sales Outreach from Key Sources by Channel
Exhibit 14: Likelihood of Paying Attention to Marketing/Sales Outreach by Key Formats
Exhibit 15: Likelihood of Paying Attention to Marketing/Sales Outreach by Key Formats by Channel
Exhibit 16: Most Likely Format of Marketing/Sales Outreach to Get Advisors Attention
Exhibit 17: Most Likely Format of Marketing/Sales Outreach to Get Advisors Attention by Channel
Exhibit 18: Most Intrusive Format of Marketing/Sales Outreach
Exhibit 19: Most Intrusive Format of Marketing/Sales Outreach by Channel
Exhibit 20: Actions Taken in Past 30 Days from Marketing/Sales Outreach
Exhibit 21: Actions Taken in Past 30 Days from Marketing/Sales Outreach by Channel
Exhibit 22: Format of Marketing/Sales Outreach Most Likely to Cause Advisors to Act
Exhibit 23: Format of Marketing/Sales Outreach Least Likely to Cause Advisors to Act
Exhibit 24: Format of Marketing/Sales Outreach Most Likely to Cause Advisors to Act by Channel
Exhibit 25: Format of Marketing/Sales Outreach Least Likely to Cause Advisors to Act by Channel
Exhibit 26: Change in Marketing/Sales Outreach During Past 12 Months
Exhibit 27: Increase in Marketing/Sales Outreach During Past 12 Months by Channel
Exhibit 28: Key Barriers to Paying Attention to Marketing/Sales Outreach
Exhibit 29: Key Barriers to Paying Attention to Marketing/Sales Outreach by Channel
Exhibit 30: Characteristics of Effective Marketing/Sales Outreach
Exhibit 31: Characteristics of Less Effective Marketing/Sales Outreach
Exhibit 32: Characteristics of Effective Marketing/Sales Outreach by Channel
Exhibit 33: Characteristics of Less Effective Marketing/Sales Outreach by Channel
Exhibit 34: Outreach Likely to Consider – Random vs. Specific Provider or Source
Exhibit 35: Outreach Likely to Consider – Random vs. Specific Provider or Source by Channel
Exhibit 36: Firms with Most Useful Marketing/Sales Outreach
Exhibit 37: Firms with Most Useful Marketing/Sales Outreach by Channel
Exhibit 38: Suggested Changes to Improve Marketing/Sales Outreach
Exhibit 39: Suggested Changes to Improve Marketing/Sales Outreach by Channel
Exhibit 40: Comparison of Outreach to Best-in-Class Providers Outside of Financial Services
Exhibit 41: Better than Best-in-Class Providers Outside of Financial Services by Channel
Exhibit 42: Worse than Best-in-Class Providers Outside of Financial Services by Channel
Exhibit 43: Overall Impact of Marketing/Sales Outreach
Exhibit 44: Overall Impact of Marketing/Sales Outreach by Channel
Exhibit 45: Impact of Marketing/Sales Outreach on Advisor Attitudes and Behaviors
Exhibit 46: Significant Impact of Marketing/Sales Outreach on Advisor Attitudes and Behaviors by Channel
Exhibit 47: Profile of Advisors by Key Characteristics
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