CFA Institute Wealth Management Conference 2013


Published on

Here are my slides from my recent presentation on Digital Strategies In The HNW Financial Advisory Practice. Here is a link to my live presentation:

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • I have spoken a lot about what to do. Let’s spend a few mins on what NOT to do!
  • CFA Institute Wealth Management Conference 2013

    1. 1. Using Digital/Social Media in Your Marketing StrategyCFA Institute – Wealth Management 2013 March 21-22 -- Boston 1
    2. 2. A Day in the Life of April Rudin 2
    3. 3. About The Rudin Group Challenging ―Business as Usual‖ Practices• Integrated marketing, branding and communications strategies for the financial services industry.• Helping UHNW / HNW community create client acquisition plans that take advantage of next generation digital platforms and communications. 3
    4. 4. April Rudin CONSULTANT TO THE STARS OF THE FINANCIAL SERVICES INDUSTRY •Financial Services Industry Marketing Consultant •Ultra-High-Net Worth / High-Net Worth Sector Specialist •Digital and Social Media Engagement and Client Acquisition Expert • Multi-Generational Communications and Media Relations Strategist • Frequent contributor to national media outlets including The Huffington Post, BusinessWeek, Bloomberg, Reuters, Fundfire, Family Wealth Report and AssetTV •High-Net Worth Advisory Board Chair for The Hedge Fund Association (HFA) 4
    5. 5. Our Agenda Social Media Strategies For CFAs: • Why You Can’t Wait • The Risks and Causes of Inaction • Allocating Resources • Best Practices in Social Media • What’s Next? 5
    6. 6. Targeting & Messaging Most Financial Services Marketing Campaigns Are Targeted Specifically to ―Boomers‖•80 million baby-boomers in 2004 worth an estimated $59 trillion•Estimated $46 million by 2018 and continue to trend downward•Gen-X (estimated 45 million) and Gen-Y (estimated 60 million) worth $10 trillionin 2004 and their combined wealth is predicted to be at least $28 trillion in 2018 6
    7. 7. How Did CFA Find April Rudin?• Thanks to @LaurenFosterNYC• @LenCosta3rd 7
    8. 8. Get a “FaceLift” Don’t be invisible to Next Gen prospects: Change the style, method and tone you use to present yourself and your firm online. Baby boomers ask friends for referrals and then act on the advice. Gen-X/Gen-Y will ask for the same types of referrals from friends, but do their own research on the Internet as well! 8
    9. 9. Characteristics of the Young and Wealthy Value transparency, community and mobile convenience Trust friends more than their parents Eager to rate their advisors and others Don’t trust the ―suits‖Ready to take advantage ofaffinity investment opportunities 9
    10. 10. Findings on Gen D75 MM people in the US belong to ―Generation D‖, abehaviorally defined group with higher income, assets,and education who: –Are deeply ―digital‖, integrating online & social tech into their lives –Are active investors –Are striving to cultivate, maintain and pass along wealth•Unsurprisingly, Gen D is somewhat distrustful of the financial community, banks, andadvisors given the state of the economy and, most importantly, their inability tounderstand how the crash happened in the first place.–Many have come to believe that Financial Advisors (FAs) are simply salespeoplepushing the products that make their employers the most money, as opposed to theproducts that would most help their clients Source: ―Accenture Wealth and Asset Management Services Market Research: Understanding the Generation D Investor and Advisor (Jan. 2013)‖ 10
    11. 11. More on Gen D•Nevertheless, they realize that investing is the ―onlygame in town‖ – there is no other means to create,maintain and pass along wealth•Gen D consists of Boomers, Gen Xers andMillennials. This provides a mechanism for projectingtowards future need states of Gen D (CohortAnalysis), as a the differences in age groups areclues to both how cohorts are likely to change overtime, and how population wants, needs and goals arelikely to change as younger cohorts become moredominant 11
    12. 12. And They’re Ready to Take ControlBaby-boomers(your clients) aretransferring over $40 trillion toyounger generations over nextseveral decadesWealth is being transferred toyoung people earlier than itwas to previous generations.They are richer AND younger 12
    13. 13. A Sector in DenialRecently, I polled an audience of wealthmanagers and asked their opinion onwhether next-gen wealth will abandon theirparents’ advisors….Over 90% said ―No!‖ 13
    14. 14. All Evidence to the Contrary According to:98% Of NewWealth InheritorsChange Advisors 14
    15. 15. Where’s The Failure??? 15
    16. 16. Boomers Talking to Boomers Baby Boomers (ages 55 +) remain the largest group of wealth holders. Established baby boomer wealth professionals are typically the ones with the biggest book of business 16
    17. 17. Boomers Have Different Values • They value trust, loyalty and long-standing relationships • Represent 70 percent ($7 trillion) of total U.S. household net-worth • Watch more TV than any other demographics • Boomers value experience over product, need to know functional outcomes 17
    18. 18. The Same, But Different… •Boomers lag in mobile 25% own smart phones or tablets in 2011 •Expected to grow to 39.8% in 2015• Boomers are apt to rely on personal referrals rather than perform actual research (conversation, email, or traditional print media)• If friends ―like‖ it they will, not inclined to seek outside opinions• Boomers value experience over product, need to know functional outcomes 18
    19. 19. Most “Baby Boomer”Iconography is Dated Go where you want 19
    20. 20. So Are Its Platforms 20
    21. 21. So What’s the Hold Up?Are you a Flintstone or a Jetson? Capture the Attention of ―Generation D‖ 21
    22. 22. Help Me To Understand?• Amplification of targeted messages/measurement and refine• Brand Differentiation both firm/personal• Enhanced Visibility/Name Recognition and Value Props• Targeted Client acquisition and leveraging the ―Money In Motion‖ 22
    23. 23. How Allocations of Marketing Resources Have ChangedSource: 23
    24. 24. Today’s Fads Are Tomorrow’s Trash• Keep pace with innovation• Focus on how technology changes how people communicate• Technology bridges generations emergence of ―Gen D‖ 24
    25. 25. The Social Media Imperative 47% of UHNW 8% of UHNW 56% of HNW 8% of HNW Regularly read blogs that B log pertain to financial topics 19 % UHNW 16% HNW 32% of UHNW 31% of HNWSource: Copyright Spectrem Group 2013UHNW = Net worth of between $5 million and $25 millionHNW = Net worth of between $1million and $5 million 25
    26. 26. How is Social Media Used? Younger UHNW investors are more inclined to use social media as a communication tool and read their advisors’ blogs •More than 25% of those under age 44 would follow an advisor on Twitter. •More than 40% would read corporate blogs •Over 30% rely more on social media for information than on traditional channelsSource: Spectrem Group 2013 26
    27. 27. Generational Use of Social Networks 86% of 18-29 year-olds use social media Over 70% of 30-49 year-olds use social media 50% of 50-64 year-olds use social mediaSource: Pew Research Center/American Life Project 27
    28. 28. What Platforms Are Musts?Platform Unique Factors Strategies and Best PracticesLinkedIn Business networking and relationship building, Structuring your profile and joining groups introductionsFacebook Small Business/Personal branding/Consumer brands B to C, Business pagesTwitter Opportunistic, newswire, short burst in real-time Aggregating and curating content to attractYouTube Most Authentic In five years, all websites will be video Teach and Learn Look + ListenGoogle+ Feasting on SEO and Adword content Struggling to be all thingsBlogging Thought-Leadership + POV, Complex ideas Content + opinion; Commenting and engaging with others 28
    29. 29. Primary Challenges to Social Media Marketing• Industry / Organizational Inertia• Available Resources• Compliance Culture• Reputational Risks 29
    30. 30. Social Media Excuses are Actually Motivations―I don’t understand the benefits‖―We don’t have the resources‖―Our clients don’t use social media‖―We don’t have established policies and procedures in place‖―It exposes firm to undue reputational risk‖ 30
    31. 31. The Risks of InactionDiminished or no brand visibility―Who were you again?‖Outmoded approaches to clientacquisition 31
    32. 32. More Risks of InactionInadequate distribution of promotional and thoughtleadership materials:Reduced market share –possibly all the way down to noneBusiness attrition: 32
    33. 33. CFA ≠Business Development• CFA- A professional designation given by the CFA Insitute that measures the integrity of financial analysts. Candidates are required to pass three levels of exams covering areas such as accounting, economics, ethics, money management and security analysis. The CFA charter is one of the most respected designations in finance—the gold standard! 33
    34. 34. Has the Ship Sailed? Yes. Sort of. Many firms should pivot toward attracting new clients rather than focus on developing Next Gen relationships with existing ones.Now is the ideal time to revamp your overall marketing tocapture market share during a period of unprecedentedgenerational wealth transfer. 34
    35. 35. Strategic Client Acquisition1. Look at your brand, its elements and your own firm’s differentiators2. Determine your own unique differentiators = messaging3. Target messages and activities by client type or persona4. Design a social media strategy and detailed plan with accountability and timing5. Execute the plan and monitor its progress. Make changes where necessary. 35
    36. 36. Active Engagement vs. Passive Profiles• Integrate with offerings and focus on firm activities• Share successes via amplified social media platforms• Lather…rinse…repeat. 36
    37. 37. Creating a Referral Network ForUHNW / HNW Client Acquisition Real Estate Attorneys Matrimonial T&E Attorneys Attorneys CFA Non-profits CPA Firms 37
    38. 38. Where it Can Go Wrong – HNW Social Media Miscues• Abandoned attempts at social media• No plan in messaging – not niche-oriented• Inconsistent posting or blogging• Too much original content and not enough curated material 38
    39. 39. Have I Made my Case? Eat your Peas! 39
    40. 40. Q & A Discussion 40
    41. 41. Thank You! April Rudin twitter: @TheRudinGroup 41