Monthly Archives: April 2009

6

Marketing for financial advisors – beyond gift baskets

BNBranding logoIt was one hell of a gift basket, piled high with a delicious assortment of treats… Not unusual for the holiday season, except it came from my financial advisor.

First gift ever from a planner who I’ve worked with for more than 10 years. Apparently, the stock market’s rise inspired her to do a little outreach. That’s one of the problems with marketing for financial advisors… it’s a fair weather affair.  (She stays conspicuously quiet when the market is tanking.)

marketing for financial advisors BNBranding

Her marketing efforts are being driven by outside forces, beyond her control.

Unfortunately, her current clients see the effort for what it is. (Just buttering us up for the bad news to come.) And new prospects aren’t swayed because her personal brand isn’t strong enough to weather the whims of Wall Street.

Her brand has no differentiation and little visibility.

Here’s an example of the typical marketing for financial advisors…

• Monthly Chamber of Commerce breakfast meeting.

• Christmas card to all clients. (Gift baskets are typically reserved for only the top three or four clients.)

• One-page, off-the shelf website, never to be touched again once it’s up and running.

• Annual guest speaker luncheon. (Bring in a so-called “expert” spokesperson, book a room at a local hotel, cater lunch and then bore us to tears. If I wanted to know all that stuff, I’d do my own trading.)

It’s more of a tactical to-do list than an actual marketing plan. There’s no strategy at all. In the past it might have worked… She could get by on her good looks and good news from a bull market.

Not any more. There’s just too much competition on too many different fronts.

Compensation for independent financial advisors is typically based either on a flat fee, or on a percentage of the total assets under management (AUM). If it’s $100 million of other people’s money, they typically make 1% of that. A million bucks gross.

The problem is, when the market “corrects” itself, they might see a 30-40% drop in AUM, so they start scrambling to find new clients.

Choose one main thing BNBrandingMost just ratchet-up their networking efforts, hoping for more word-of-mouth. But it’s tough when they’ve been silent for years.

Some have discovered a new, more lucrative pipeline: Internet-based lead generation services.

Advisors sign up with an independent web directory and they pay only for highly qualified referrals. Very little effort for financial advisors. Very big ROI.

Independent, third-party directories also fill a vital role for consumers: They help simplify  the search and match prospects with a financial advisor who fits.

It’s a vexing decision, choosing someone to handle your life savings. And most financial advisor web sites  have the same, stock-photo look, and the same brochure-style copy. Very, very few have any sort of specialty or market niche.

On-line directories have been done successfully in the education market, travel, real estate,  and the auto industry. So why not financial advisors?

When prospects go on line to research “financial advisors” they begin with Google. But Google can’t sort or organize the category in a helpful way. That’s where directories come in…  they categorize advisors, provide details on specific services and nudge prospects along in the decision making process.

So assuming that you have some sort of specialty or differentiating featues, you can get a steady stream of very qualified leads and search engine optimization you could never achieve on your own.

In this day and age, marketing for financial advisors has to go beyond a static website and a Facebook page.

If you really are an expert financial planner, share your knowledge and your unique insight by writing a blog. Establish a presence for you and your personal brand in places where your direct competitors aren’t.

Do something, ANYTHING, that’s different from what you’ve always done.

Most professionals who run small service businesses believe  networking is enough. But that’s not the case right now for financial advisors. There’s no gift basket big enough for the job ahead. It’s time to start employing some new marketing tactics.

But before you dive in, consider your strategy. Because tactics without a strategy is like a ship with no rudder. For more on Strategy vs. Tactics, try this post.

If you want an idea that will dramatically differentiate you from all the other hungry financial advisors and help you retain clients without the use of lavish gifts, send me an e-mail: johnf@bnbranding.com.

For more info, try this post.

BNBranding's Brand Insight Blog

 

6

Comparison ads – From Cola Wars to Computer Wars

BNBranding logoA client recently asked me if he should run some comparison ads. It’s a good question, and the answer depends on a variety of factors.

There are many examples of successful comparison ads. Back in the 70’s and 80’s the most talked-about battle of the brands was between Coke & Pepsi. The Cola war was a popular topic of college marketing classes and business books. It even hit prime time TV on All In The Family and Saturday Night Live.

“No Coke. Pepsi!” John Belushi famously said.

Today the battlefield has shifted from soft drinks to smart phones and software. Taco Bell’s trying to compare its breakfast to a McMuffins and nerds all over the world are claiming “I’m a PC.”

It’s the war between Microsoft and Apple. A war that should never have been fought.

software wars on the brand insight blog BNBrandingEvery since 1984, when Steve Jobs launched the Macintosh with one of the most famous superbowl commercials of all time, the folks up in Redmond have been paranoid about Apple. So paranoid, in fact, they’ve ignored one of the most basic tenets of marketing…

Never respond to an attack by a smaller competitor.

This is marketing 101 folks. If you control 90% of the market, like Microsoft once did, don’t give a puny little competitor like Apple the time of day. Don’t get suckered into a fight, and don’t design an ad campaign that directly mimics the competitor’s campaign.

Apple started it all with the help of TBWA/Chiat Day’s brilliantly simple “I’m a Mac” campaign.  https://www.youtube.com/watch?v=qfv6Ah_MVJU Those spots work on so many different levels, it’s ridiculous… probably the most brilliant “talking head” advertising of all time.

comparison ads on the brand insight blog - BNBranding

If the Microsoft execs were smart they wouldn’t touch the subject with a ten-foot pole.

Duck and cover! Just let it go, and come up with something memorable of your own.

You’re the market leader, remember!

But noooo. They played right into the enemy’s hands and produced a knock-off version of the Apple spots. They hired an actor who looks like the guy in the original Apple spots, and gave him this opening line: “Hello, I’m a PC, and I’ve been made into a stereotype.”

All that did was shine the spotlight back on Jobs & company.

Microsoft’s copycat spots gave the Apple campaign a whole new life. Every time one ran, the audience was reminded of the original Apple spots. Not only that, the media coverage of the comparison ads gave Apple free airtime on the evening news, effectively extending the smaller competitor’s media budget.

I’m not sure if Apple was purposely trying to get a rise out of Microsoft, but they sure did. And every time Microsoft responds in kind, they dig themselves a deeper hole.

Next, Microsoft upped the ante in their ad war against Apple.They send out “real people” to shop for the best laptop they could find for under $1000. A cute, wholesome-looking actress pretends to visit an Apple store and says “I guess I’m just not cool enough for a Mac.”  https://www.youtube.com/watch?v=qQOzNDZzZzk   

It’s a nice, authentic feeling spot. Probably the best spot ever produced for Microsoft. From an execution standpoint, it’s very well done. Unfortunately, it’s based on a no-win strategy. The Microsoft ad actually reinforces Apple’s position in the marketplace…

It’s the computer for cool people. The phone of the hippest. The brand of creativity.

Apple has always been a premium brand that’s not for everyone. That’s not news. So why does Microsoft continue to run ads that help cement that message?

In the “Laptop Hunter” spot they’re basically admitting that a Mac is what everyone aspires to. If you can’t afford one you settle for a second-best PC. The spot flat-out encourages people to compare Windows-based laptops to Apple laptops, and the more that happens, the more market share Apple will steal.

Fox News did a nine-minute segment about the misguided Microsoft comparison ads, and Apple’s laughing all the way to the bank.

How to differentiate your company - BNBrandingSure, there is some low-hanging fruit right now in low-end laptops. But that’s just a short-term message that hinges more on the economic climate than any genuine brand strategy. Not the type of message a #1 player should even consider.

Tit for tat works for Apple. Not for Microsoft.

The market leader should lead, not follow, in its advertising. Besides, you can’t take pot shots at a perceived underdog, it just doesn’t look good.

The fact is, Microsoft’s never had a decent ad campaign before landing at Crispin Porter. On the other hand, Apple has a long history of groundbreaking advertising, from “Think Different” to the iconic iPod spots and “I’m a PC.”

Apple inspires great advertising because it makes great products. They can do comparison ads because the facts back-up the hype. They have superior products, in so many ways.

Microsoft… not so much.

So that’s the first criteria for comparison ads… if you truly, clearly have a product that’s factually better than the competition’s product, by all means, run comparison ads. Truth rules!

But if the product or service is just the same, or even just subjectively different, don’t do it. You’ll get sued.

Every ad, every social media post, every point of purchase display Apple ever creates is a comparison ad of sorts. Not overt, but a subtle comparison nonetheless. Because as consumers, we immediately categorize things.

ipod branding on the brand insight blog

 

When these ads for the iPod came out, we immediately thought “Wow… that’s cool. Microsoft sure doesn’t have anything like that.”

In fact, there were a number of functional MP3 players on the market at the time, but they weren’t cool looking. They weren’t branded. And they weren’t as well designed as the iPod.

These print ads summed it all up in one, simple graphic solution. They didn’t have to beat people over the heads with product features and mind numbing facts. They just showed the product in its jamming simplicity.

So here’s another criteria for comparison ads… You can do them when public perception is on your side.  Before Apple ever launched the “I’m a PC”  campaign, the whole world knew the score. The TV spots just confirmed what everyone was already thinking.

And finally, when it’s a David and Goliath situation, only David can throw out comparison ads successfully. Like when the little start-up burger chain called Wendy’s took on McDonald’s.

comparison ads BNBranding's Brand Insight BlogOne brilliant comparative ad — three words — solidified that brand and cemented Wendy’s success.

“Where’s The Beef?”

It was a brilliant, humorous twist on comparison advertising. Their hamburger patties really were thicker and juicier than McDonald’s, and the old lady just said it, flat out.

Watch it here. 

Notice that the word “McDonald’s” is nowhere to be found in that script. Doesn’t have to be… everyone knew that they were referring to the market leader. In that case, there’s no denying the success of that comparison advertising.

Unlike Microsoft, McDonald’s was smart enough to NOT respond to the humorous jab.

For more on advertising strategy, try this post. 

BNBranding's Brand Insight Blog