See Table of Contents for Tiburon's Financial Advisor Sales & Marketing Research Report

Tiburon Strategic Advisors, a market research & strategy consulting firm serving a wide variety of financial institutions and investment managers, is pleased to announce the release of its new research report on Financial Advisor Sales & Marketing. This research release summarizes some of the report's key findings.

The purpose of this report is to provide readers with an initial understanding of the wide range of potential financial advisor sales & marketing strategies, including client retention, client consolidation, client referrals, professional referrals, seminar & direct marketing, and advertising & public relations strategies. This is the third draft of Tiburon’s research on this topic.

Tiburon’s first draft of this report was published in 2005; that draft consolidated prior Tiburon research into one report. That draft was also combined with Tiburon’s consumer wealth research report. It outlined consumers, their wealth, potential target markets, and sales & marketing strategies.

Tiburon’s second draft of this report was published in 2007; that draft was unbundled from Tiburon’s equally good report addressing consumer wealth, liquefaction, & the retirement income challenge. That draft also more clearly made the case for the need for target marketing in the increasingly competitive playing field.

This is Tiburon’s third draft of this report; this draft aligns the report’s structure with that of other Tiburon research reports. This draft also unbundles both Tiburon’s institutional markets research report and its financial services industry sales & marketing research report. And this report adds an appendix of key service providers of sales & marketing programs and tools, including those of core Tiburon clients JCPR and News Corporation.

Key Findings
This report has a long list of interesting facts to share:

Evolution of Financial Advisor Sales & Marketing Strategies
This chapter outlines the evolution & market history of financial advisor sales & marketing strategies:

Market History

  • Only about one-third of fee-based financial advisors say that they have transferable marketing skills
  • Most financial advisors invest limited time in marketing; nearly all dedicate less than five hours per week
  • Independent reps spend a significant amount of time on marketing and are looking to increase their marketing focus
  • Approximately only one-third of independent reps have a written marketing plan in place
  • As a testament to the effectiveness of a written plan, over three-quarters of top producing independent advisors have both a marketing and business plan in place
  • Only one-third of fee-based financial advisors seek third-party marketing help
  • Fee-based financial advisors rated their desire for marketing assistance as a 6.8, with generally high scores
  • Fee-based financial advisors attribute their moderately high need for marketing assistance to their current lack of marketing strategies, and the necessity of marketing to grow one’s business
  • 52% of funds have been recently received while 42% have been moved from another financial institution

Market Segmentation
This chapter outlines market segmentation in financial advisors sales & marketing strategies:

Client Referrals

  • More than one-half of all new fee-based financial advisor assets come from client referrals, with passive referrals being the main source
  • One-third of top producing fee-based financial advisor clients come from client referrals
  • More than one-half of independent reps’ clients come from passive and proactive client referrals, with the largest portion being passive.
  • Across independent reps of all sizes, about 60% of new clients are the result of passive and proactive client referrals, with even a slight increase amongst the largest reps
  • Nearly all of Commonwealth President’s Club reps feel their most important marketing method is some kind of referral
  • Over one-half of financial advisors do not ask clients for additional assets
  • There is a high correlation between advisor income and willingness to ask for additional assets.
  • Independent reps are generally pleased with the success of client referrals.
  • On average, one-half of clients shop for financial advisors.
  • Two-thirds of the time clients will require multiple meetings before deciding on a advisor.
  • More than one-half of clients make their decisions within one month though. 25% take one to three months, 15% take three months to one year, and 5% take over one year

Professional Referrals

  • Almost all CPAs and attorneys make referrals to financial advisors
  • Most lawyers are seeking financial advisors to whom they can refer business
  • Estate planning lawyer referrals can be particularly lucrative; the average client has $2.7 million in investable assets
  • One-quarter of estate planning lawyers actively seek clients to refer to outside advisors

Seminars & Direct Marketing

  • Financial advisors have found that nearly one-half of their seminar attendees request follow-up appointments
  • The most popular seminar materials amongst fee-based financial advisors come from Ibbotson
  • Emerald Publishing delivers the most popular seminar materials for independent reps
  • Nearly all consumers registered on the National Do Not Call List claim receiving fewer calls per month

Advertising & Public Relations

  • Newkirk Publishing helps with newsletters
  • Larkspur Data Resources provides detailed databases & mailing lists
  • The Wealth Finder is a referral service that provides lists of affluent individuals

Future Predictions for Financial Advisor Sales & Marketing Strategies
This chapter outlines the future predictions for target markets & marketing strategies:

  • Client retention & consolidation will be critical
  • Client referrals will remain the best marketing method
  • Increased competition will create the need for more proactive marketing approaches for new clients
  • Firms utilizing target marketing will be most successful
  • Numerous occupational, ethnic, & other segments will also provide terrific opportunities

To better understand the developments for Financial Advisor Sales & Marketing, executives can purchase Tiburon's Financial Advisor Sales & Marketing Strategies: Selecting the Most Successful Strategies research report where the key findings highlighted above are covered in greater detail. Please contact Sarah Sage at SSage@TiburonAdvisors.Com or 415-789-2540.