Kevin Mulhern by Kevin Mulhern, CEO & Co-founder of AdvisorStream

As COVID-19 has undoubtedly changed the nature of how advisors and investors interact, AdvisorStream set out to understand how advisors are coping and what opportunities, if any, exist within this period of uncertainty.

As the largest study of its kind, we surveyed nearly 1,000 US & Canadian financial advisors and supplemented it with data from the AdvisorStream marketing platform.

Here are some of the key findings and what it means for financial advisors looking to grow amid panic and volatility.

Infographic: A Tale of Two Advisors: Communication During Crisis (PDF)

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Nearly 50% Increase in Demand for Advisor Communications

Advisors who are not embracing digital marketing are at risk of losing clients and are unable to fully capitalize on the surge of investors seeking advice and reassurance.

Of those advisors that had not embraced digital marketing:

  • 52% are concerned about losing clients
  • 37% are very concerned that a lack of regular communication would lead to client attrition
  • Almost 75% were frustrated with generating new leads and standing out among other advisors

Fortunately, those advisors who had embraced digital marketing to communicate benefited from stronger engagement with clients and increased business development.

  • Open rates that are 20% higher than industry averages
  • Click through rates 171% higher than industry averages

And if that’s not enough of a reason to embrace digital marketing...

Nearly 40% Growth in Leads Experienced by Digitally-Enabled

Advisors who embraced digital marketing & regular client communications (e.g., social media, email, newsletters) experienced incredible growth, generating 40% more leads during the pandemic compared to the pre-quarantine period.

With all the uncertainty abound, investors are looking for facts and information that can provide context on what’s happening with the world and financial markets.

Advisors that are able to provide regular commentary and leadership, whether that’s through their own content or with credible third-party content, stand to gain substantially and immediately from increased client engagement and new business generated from investors who don’t feel their advisor is providing them with regular updates.

Recommendations for Financial Advisors & Firms

Despite global unrest and market volatility, there is an immediate opportunity for advisors and firms to generate business by forging strong relationships with clients. In today’s world, that means embracing digital marketing - those that do this now will reap the benefits as others struggle to catch up.

If you want to grow your practice and increase your share of wallet, you must:

  • Start using digital marketing to communicate with your clients and prospects frequently and in a meaningful way
  • Use content to build trust and provide context, including a mix of firm-created content and resources from credible third-parties
  • Share content that clients want to read - don’t focus solely on financial news, include content on health and financial well-being to keep things fresh and engaging
  • Use a mix of content and personalize the content in your communications to the interests of each client and prospect

Use automation marketing tools to make this manageable and to lessen the burden on your team.