Due to the growing FinTech sector, there is no shortage of easy-to-use apps or investment bots looking to provide financial advice to curious individuals. However, this technology disruption has created new challenges for wealth managers who now have to work to stand out in a crowded marketplace and maintain customer loyalty. While these challenges may seem daunting at first glance, wealth managers have an opportunity to use the power of marketing automation to reach and engage with both prospects and current clients alike.
Here are four ways that wealth managers can make marketing
automation their biggest asset:
1. Grow assets under management
(AUM)
More assets under management means more revenue for wealth
managers, but growing AUM isn’t always a walk in the park. Wealth managers need
a solution that scales with their increasing assets — and their expanding
client base.
Smarter marketing
automation makes this simpler. For example, when a
prospect visits a financial institution’s website and signs up for an
educational newsletter, a financial institution can dynamically offer related
content that leads to cross-sell and up-sell opportunities.
2. Retain clients
Automation is a powerful tool for retaining clients and keeping
them engaged. 47% of people who use human financial advisors say they are open
to receiving personalized communications related to helping them achieve their
financial goals, like emails tracking their progress toward saving or
retirement. Furthermore, a top reason people leave or switch financial advisors
is due to the “inconvenient location”
or geographical distance, of the advisor. Frequent, personalized communications
could help retain these clients by making them feel closer and more connected.
Marketing automation also offers the option of building
re-engagement campaigns to make sure disengaged clients don’t slip through the
cracks. If a client hasn’t logged into his or her online account for 90 days,
for example, an automatically triggered re-engagement campaign would be a
strategic way to preventing attrition.
3. Avoid wealth transfers
When a client is ready to transfer wealth to his or her heirs,
there’s no guarantee for wealth managers that the client’s money will stick
around. Many people in younger generations inherit assets but then make a move
to another financial institution.
Marketing automation can help mitigate wealth transfers, and this
process begins even before younger prospects inherit assets. Long-term lead
nurturing campaigns triggered automatically can help wealth managers build
relationships over time, ideally gaining a prospect’s trust. If that prospect
does inherit wealth, he or she will likely be primed to work with the financial
institution that has provided valuable resources and established an existing
relationship.
4. Educate clients
According to Salesforce’s 2017 Connected
Investor Report, 49% of Millennials, Gen Xers, and Baby Boomers on average say
they are not very knowledgeable or not at all knowledgeable about different
types of investments, such as bonds or mutual funds. This points to the
enormous opportunity to educate investors.
For example, wealth managers can create informative onboarding
journeys for new clients — or current clients who want to learn more about a
new financial product. Imagine setting up a triggered, five-part email journey
called “Getting Started with Mutual Funds.” The possibilities for education are
nearly limitless.
There are various ways a wealth managers can grow AUM, retain
clients, and more, but marketing automation continues to be a strategic go-to
tool. Wealth management companies that can deliver a targeted and personalized
message at scale will likely stay ahead of the competition and stand out
amongst the noisy and crowded FinTech space.
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