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Referrals vs. Word of Mouth: What’s the Difference?
Knowing the difference will shape your marketing strategy.
Referrals vs. Word of Mouth: What’s the Difference?
Referrals and word-of-mouth marketing are powerful ways for financial advisors to acquire new clients. While they share some similarities, the two approaches have key differences. By understanding these differences, you can tailor your strategy to attract new clients.
Referrals typically involve a direct recommendation from an existing client to a potential new client. The current client has had a positive experience working with you and feels comfortable recommending you to others. Referrals create a personal connection between the existing and potential client and are often a result of excellent customer service and relationship building.
On the other hand, word-of-mouth marketing involves creating a positive reputation and buzz around you or your company, which can spread organically. Word-of-mouth marketing is often less personal than referrals and can reach a wider audience. It is often created by demonstrating expertise in a particular area or specialty through content, such as blog posts or social media posts. The reputation then spreads through the advisor’s niche or local community via online and offline channels, such as events and social media.
Referrals may be more effective for reaching a targeted audience through personal connections, while word of mouth can help create general awareness and attract a wider audience. By using a combination of both approaches, you can build a strong and sustainable client base
Written in collaboration with artificial intelligence (ChatGPT-4). Edited by a human.
Giving AI Credit Where It’s Due
You shouldn’t claim AI-generated articles as your own.
Giving AI Credit Where It’s Due
When using AI-generated content, it’s vital to credit artificial intelligence (AI) transparently and appropriately, just as you would with ghostwritten articles. This practice informs the audience of the collaboration between the writer and AI. Here are some guidelines on when and how to credit AI:
Credit AI when it significantly contributes to the content, such as generating entire articles, sections, or key insights.
To credit AI, include a clear statement in the article’s introduction, conclusion, or as a footnote—for example, “Portions of this article were generated with the assistance of [AI Tool Name].”
Acknowledge collaboration, emphasizing the writer’s role in refining and contextualizing the content—for instance, “This article was created in collaboration between the author and [AI Tool Name].”
Written in collaboration with artificial intelligence (ChatGPT-4). Edited by a human.
The Marketing Cycle: Navigating Between Development and Maintenance
Instead of constantly developing a new marketing plan each year (or quarter, as I recommend), it's best to work the plan. In those periods, establish a marketing routine rather than creating an entirely new plan.
The Future of Content Marketing Is AI
The key to success is asking the right questions.
The Future of Content Marketing Is AI
AI tools are evolving rapidly, becoming more sophisticated and proficient in generating high-quality content. To fully harness the potential of AI-powered content creation tools, financial advisors must excel in the art of asking the right questions.
Posing the right questions to AI entails gaining a deep understanding of the needs and preferences of the target niche. Financial advisors should identify the subjects and challenges most pertinent to their clients and subsequently tailor their questions to generate content that specifically addresses these concerns.
By skillfully asking the right questions, financial advisors can leverage AI to produce content that is not only informative but also engaging and relevant.
Written in collaboration with artificial intelligence (ChatGPT-4). Edited by a human.
The Marketing Cycle: Navigating Between Development and Maintenance
Instead of constantly developing a new marketing plan each year (or quarter, as I recommend), sometimes it’s best to simply work the plan.
Instead of constantly developing a new marketing plan each year (or quarter, as I recommend), sometimes it’s best to simply work the plan. In those periods, establish a marketing routine rather than create an entirely new plan.
Throughout the nearly 18 years of my career, I’ve created marketing plans ranging from 30-page documents to one-page summaries, and from slide decks to spreadsheets. My quest has been to find the perfect framework for a marketing plan that advisors will follow.
What I’ve discovered is that the framework for your marketing plan is likely to change from year to year. It depends on the marketing mode your business is in. For example, there will be development years, where you tackle major initiatives such as a new name and brand, a new website, or implementing an intentional marketing strategy for the first time. Then there are maintenance years, where you simply work the strategy you developed in previous years.
For instance, in 2023, my business is in development mode. Therefore, I’m using a more extensive marketing plan structure, as outlined in “The 12-Week Advisor Marketing Plan.” I’m launching a new book this summer, complete with a new program and brand. Everything needs to be on a set timeline for a synchronized launch, making a detailed plan crucial.
However, in most years, when I’m in maintenance mode, I don’t use the 12-week marketing plan for my business. Instead, I establish marketing routines ingrained into workflows within our project management system (advisors would probably use their CRM). For instance, I send out a weekly marketing tips newsletter, write a blog and guest article every other week (or at least I try), and reach out to a specific number of COIs each quarter. We also run Google retargeting ads 24/7. Some of my routines are annual, such as attending the same conferences each year.
The key to successful marketing isn’t constant innovation and development. Consistency and repetition of what you develop are what will produce results. It takes time and persistence to build relationships, establish trust, and increase brand awareness and engagement. This holds true for both in-person and digital marketing, as well as advertising such as paid radio spots or online ads.
Here are some examples of marketing routines:
Daily:
Engage for 15 minutes in groups or with connections on social media
Run Google ads (continuous)
Weekly:
Schedule 10 social media posts for the week
Write a blog
Post a blog
Monthly:
Review marketing analytics
Send birthday and anniversary cards
Send email newsletter highlighting original content
Quarterly:
Send quarterly market wrap newsletter
Host quarterly market wrap webinar
Annually:
Host holiday open house
Establishing routines helps you integrate marketing into your workflows seamlessly. There is no question about what needs to be done—it just gets done. There is no need to wonder what you will do this quarter or year for marketing, because if you don’t do anything but your routines, you are ahead of most advisors.
Final Thoughts
Navigating the marketing cycle involves understanding when to focus on development or maintenance. The framework for your marketing plan may change from year to year, depending on your business’s marketing mode. Development years involve tackling major initiatives, while maintenance years focus on working the existing marketing strategy.
Consistency and repetition are key to marketing success rather than constant innovation. Establishing daily, weekly, monthly, quarterly, and annual marketing routines helps seamlessly integrate marketing into your workflows. It’s crucial to use the right planning tools, like the 12-week marketing plan, during development mode and to create marketing routines during maintenance mode.
Key Takeaways
Your business will fluctuate between development mode, when you push forward big initiatives, and maintenance mode, when you work the plan and harvest the fruit of your efforts.
During development mode, the 12-week marketing plan is the best planning tool to use.
During maintenance mode, create marketing routines and build them into your CRM workflows.
Written by a human. Edited by artificial intelligence (ChatGPT-4) and humans.
About Kristen Luke
Kristen Luke is the president of Kaleido Creative Studio, a marketing consulting firm that helps Registered Investment Advisors and their employees position themselves as experts in a niche, making them “uncomparable” to other advisors.
Her book, Uncomparable: The Financial Advisor’s Guide to Standing Out through Niche Marketing, is expected to be published on July 25, 2023. Financial advisors associated with an RIA can request a free copy here: https://www.kaleidocreative.com/book.
How Embracing Dehomogenization Can Benefit Financial Advisors
Like streaming services, advisors can offer tailored financial solutions for their niche clients.
How Embracing Dehomogenization Can Benefit Financial Advisors
Just as the shift from network TV to cable and streaming services has made our media landscape more diverse and personalized, a similar opportunity exists for financial advisors to focus on niche markets.
By getting to know specific client segments well, advisors can not only stand out in a competitive market but also offer services that are a perfect fit for their clients. Think of it like streaming services. They have shows for everyone’s unique taste—advisors can do the same with financial solutions for their niche clients.
By embracing this trend toward dehomogenization and finding their niche, financial advisors can follow in the footsteps of the media industry’s transformation. This approach allows them to provide tailored solutions, forge lasting relationships with clients, and build a reputation as the go-to expert in their chosen niche.
Written in collaboration with artificial intelligence (ChatGPT-4). Edited by a human.
Expanding Beyond Your Former Client Base as a Breakaway Broker
Tap into these marketing strategies to grow your firm.
Expanding Beyond Your Former Client Base as a Breakaway Broker
When an RIA with only two to three years of operation accumulates significant assets (e.g., $750 million), they are likely a breakaway broker. Often, their marketing strategy has focused on launching a website and mining clients from their former company. As this client base gets exhausted, the firm needs a more deliberate marketing plan.
While prioritizing previous clients makes sense initially, it’s essential to have a plan to acquire new clients and grow after a couple of years. I recommend these strategies for such firms:
Leverage client referrals by tapping into your existing client base’s networks.
Enhance your online presence through search engine optimization, review sites, advisor listings, and potentially Google ads.
Focus on niches. Segment clients into top niches, assign one advisor per niche, and let them explore opportunities within the existing client base while expanding their reach.
Written in collaboration with artificial intelligence (ChatGPT-4). Edited by a human.
Best Practices for Writing Effective Content for Your Websit
Focus on doing a few things well.
Best Practices for Writing Effective Content for Your Website
When it comes to writing content, there are best practices to keep in mind to ensure your content is engaging, informative, and effective. Here are seven best practices to consider:
Know your audience: Understanding your audience is key to creating content that resonates with them. Take the time to research your audience and understand their needs, interests, and pain points.
Write for the web: Writing for the web is different from writing for print. Use short paragraphs, bullet points, subheadings, and other formatting techniques to make your content easy to scan and read.
Use clear and concise language: Use simple language that is easy to understand. Avoid jargon, technical terms, or anything else that may confuse your readers.
Provide value: Your content should provide value to your readers. Answer their questions, offer solutions to their problems, or provide helpful information that they can use.
Use storytelling: Employ storytelling techniques to make your content more engaging and memorable. Use examples, anecdotes, and stories to illustrate your points and connect with your audience.
Use visuals: Use images, videos, and infographics to make your content visually appealing and illustrate your points.
Edit and proofread: Review your content to ensure it is error-free, flows well, and is easy to read. Use online tools such as Grammarly or Hemingway to help you check for errors.
By following these best practices, you can create content that is engaging, informative, and effective at reaching and engaging your audience.
Written in collaboration with artificial intelligence (ChatGPT). Edited by a human.
The 52: The Magic of Repetition and Routines
Unlock the secret to marketing success.
The Magic of Repetition and Routines
Effective marketing requires repetition and consistency to build relationships, establish trust, and increase brand awareness. While marketing should be memorable, creative, and engaging, the implementation should be repetitive and boring.
Make marketing a regular part of your operations by building it into your company's workflows. This helps you build awareness, increase sales, stay competitive, and adapt to changing market conditions.
By marketing regularly, you stay top of mind with existing clients and COIs and reach prospective clients in your niche.
Establish a routine for activities such as content creation, social media, email marketing, and networking to ensure marketing success and stand out. Consistent effort leads to growth and success!
Written in collaboration with artificial intelligence (ChatGPT). Edited by humans.
The 52: Treat Marketing as an Experiment
Treating marketing as an experiment can help you try different tactics, measure results, adapt to trends, and learn from failures to grow your business.
Treat Marketing as an Experiment
Financial advisors should consider marketing an experiment because it allows you to try different strategies, tactics, and channels to see what works best for your business. Marketing is not a one-size-fits-all approach; what works for one advisor may not work for you. By approaching marketing as an experiment, you can:
Test strategies: Try different marketing tactics to see which ones resonate best with your target audience. For example, experiment with social media marketing, email marketing, content marketing, or traditional advertising to see which channels drive the most leads.
Measure results: Track metrics like new appointments and conversion rates to determine which marketing efforts are most effective. This allows you to focus your resources on the strategies that yield the highest ROI.
Adapt to changing trends: Prospect behavior constantly evolves depending on economic, political, and social environments. By treating marketing as an experiment, you can experiment with new tactics and channels to adapt to the changing environment.
Learn from failures: Not every marketing experiment will be successful, and that’s OK. By embracing failure as a learning opportunity, you can identify what didn’t work and adjust your approach accordingly.
Treating marketing as an experiment allows you to be more agile and responsive to changing market conditions. Continuously testing and refining your marketing strategies can improve your brand awareness, attract more leads, and ultimately grow your business.
Written in collaboration with artificial intelligence (ChatGPT). Edited by humans.