Why Financial Firms Must Invest in Consumer Marketing Strategy

The financial services industry is changing. My colleague and Partner at the firm, Dan Allocca, has discussed this in detail in what he has coined the “Alts Arms Race.” Retail investment options have expanded to include traditionally institutional grade alternatives, and alternative investment firms are in a consistent battle to attract investors with their offerings in the space.

This changing dynamic has real implications for how financial brands need to adjust their marketing strategy – and the lens through which they view marketing in general. The increasing retail investment aspect to the industry means that brands should consider their clients as more than just clients—but consumers. And when you’re dealing with consumers, you should lean on marketing tactics that have been effective in more traditionally consumer-facing industries.

No longer can legacy brand affinity be solely relied upon to showcase value in an increasingly digital world. There is simply too much competition, access to information, and a younger generation of investors who have grown up in an era with endless options who can conduct thorough research online before making decisions. Investors want to feel their capital is in safe hands with a performance-focused firm, but they also seek to understand what that brand represents and values, as well as who drives its culture and results.

With this in mind, you may be wondering: how exactly should my firm adjust our marketing strategy? I’m glad you asked.

The overarching theme is that you must show your audience, again and again, why you are the premier firm that offers the best product or service to meet their needs. Stagnation is the enemy, as news quickly becomes old in the digital world; and you’re only as good as your next ranking, your next deal or your next fund close.

But how does that come to life? Financial brands should borrow consumer marketing tactics at both a high- and granular-level. At a high-level, you must develop a brand narrative that resonates with your target audience and consistently amplify those pillars throughout your content strategy. Every piece of content should be packaged with that in mind to build real brand affinity and consistency—a financial community.

Successful consumer brands that have achieved staying power have developed an overarching narrative that makes their customers feel that they are part of something bigger; a movement, a lifestyle or a community. Think Nike, Levi’s or Dove. Using those products means something to their customers, as they know exactly what the brand represents, and they are proud to be under that umbrella. Financial brands must do the same.

Once armed with your narrative, turn to the granular level. It comes down to multiple strategic touchpoints – over and over again – on the platforms your audience lives on. Leverage the digital platforms where your targets are (LinkedIn, Bloomberg, etc.) and equip those placements with superior, engaging content that not only speaks to your value proposition but SHOWS it.

When a consumer surfs Amazon for the newest product, they want reviews. They want testimonials, and they want a history of high quality. Financial brands need to determine how they leverage that aspect of consumer behavior and showcase their own performance and mission/brand story through digital channels.

Does that mean tapping into influencers and digital advertising? Amplifying thought leadership? Activating C-Suite leaders on social media? Showcasing performance through eye catching reports on LinkedIn? Yes, yes, yes and yes. And much more.

It’s an ever-evolving landscape where test and learn approaches are key to nailing your messaging and understanding the digital tactics that move the needle for your business. Name brand isn’t enough anymore—you need an integrated, tailored marketing strategy to show up and show out for your business. It requires investment, resources and strategic thinking, but it’s not an option, it’s a necessity.

We’re no longer in a traditional financial marketing environment: we’re dealing with educated, digital financial consumers. It’s a brand-new world where you must adapt or be left behind.