Not All Marketing Tactics Are Lead Generation Tactics

In the recently published Kitces.com 2024 Marketing Study, various marketing tactics were evaluated for their success rates. Client referrals topped the list at 95%, while newsletters lagged behind at just 11% (Page 25). However, these numbers can be misleading.

Rarely does a new client result from a single tactic—except, perhaps, in the case of direct, one-on-one interactions such as referrals, cold-calling, and solicitations, which naturally score high due to their direct measurability.

But as I discuss in my book, Uncomparable: The Financial Advisor's Guide to Standing Out Through Niche Marketing, effective marketing isn’t about relying on just one tactic; it’s about building an ecosystem. An ecosystem nurtures relationships through multiple touchpoints—from first awareness, to lead generation, to nurturing, to conversion—ensuring that no single tactic bears the full weight of client acquisition.

The ecosystem includes tactics that scored low in the study, such as social media, webinars, podcasts, newsletters, and blogging. When integrated into a cohesive strategy, even these lower-scoring tactics play a vital role in driving long-term success.

Not all marketing tactics are lead generation tactics; some play other essential roles in the ecosystem.

There Are No Bad Tactics, Just Bad Strategy

This tip was originally published in September 2022.

I often hear that ________ (fill in the blank) marketing tactic doesn’t work. That includes social media, podcasts, and videos, just to name a few. I have seen every marketing tactic succeed as well as fail. The difference is the strategy.

First, ask yourself: Who is your audience? Would this tactic work with them? Are you using the right marketing channels and content medium?

Second, what is your message? Is it unique, compelling, and relevant to your audience?

Finally, are you implementing consistently and for long enough to make an impact?

Before giving up on a tactic, take a step back and look at the strategy. The culprit of an ineffective tactic is often a lack or misalignment of strategy.

Developing a Niche and Gaining Clients with Kristen Luke

The Impact of Niche Marketing and Structured Planning

In July, Kitces.com released its 2024 marketing study, “How Financial Planners Actually Market Their Services.” Since it's unlikely that most people will read all 108 pages of the study, I am covering the key highlights over the next few weeks.

The study found that “most practices (65%) did not have an established niche, and 58% had no routine marketing planning process” (Page 15). However, “high-growth practices are far more likely to be niche-focused. While 45% of high-growth practices predominantly target at least one niche, only 29% of other practices do” (Page 65).

Last week, we learned that marketing is becoming more expensive and less effective. These findings suggest that one way to improve marketing results is to focus on a niche and adopt a formalized approach to marketing.

Read the entire study here.

The Cost and Commitment of High-Growth Financial Practices

This week, Kitces.com released its 2024 marketing study, “How Financial Planners Actually Market Their Services.” Since it's unlikely most people will read all 108 pages of the study, I thought I would highlight some key points of interest over the next few weeks. For this week, here are some key numbers:

• The median acquisition cost per client in 2023 was $3,800, a 75% increase since their 2021 study (Page 7).

• New client growth slowed from 10.6% in 2021 to 8.6% in 2023 (Page 7).

• Marketing expenditures for a typical high-growth practice were 12.5% of revenue (including both soft labor costs and hard dollar costs), whereas their peers spent 9.7% (Page 9).

• High-growth advisors commit 15% of each work week to marketing activities, compared to 10% for other advisors (Page 9).

These numbers suggest that marketing is becoming more expensive and less effective. However, those who are seeing the most success are the ones spending more time and money on marketing.

Read the entire study here.

The Power of Niche Marketing with Kristen Luke

Streamlining Multiniche Approaches for Large Advisory Firms

When a large advisory firm decides to implement a multiple-niche approach, it's important to set clear guidelines for each niche. First, every niche should align with an overarching theme. For example, if the overarching theme of the company is retirement planning, then each niche should be focused on retirement planning (e.g., Retirement Planning for Federal Employees, Retirement Planning for Business Owners).

Second, the firm must ensure that all niches fit within the company’s fee structure. If the company charges based on assets under management (AUM) and has a minimum account size of $1 million, then every niche must adhere to this standard. Changing the fee structure or adding new options should be done strategically for the entire firm, not just for one niche.

Having guidelines helps streamline a multiniche approach by ensuring that all niches reinforce the company’s core mission and messaging while maintaining operational efficiency.

Strengthen Your Bonds with the 7-11-4 Rule

To strengthen your bonds with people in your niche through content marketing, apply the "7-11-4" rule from Daniel Priestley's book, Oversubscribed: How to Get People Lining Up to Do Business with You. This strategy is based on three key ingredients for forming bonds: time, interactions, and locations.

• Time: Have your audience engage with your content for at least seven hours. Research shows that this number moves relationships from feeling like acquaintances to feeling like friends.

• Interactions: Engage in at least 11 interactions. Frequent exchanges (e.g., marketing emails, videos, social media exchanges) build connections, increasing the likelihood of converting interactions into appointments.

• Locations: Engage your audience in at least four different locations. Seeing people in varied settings (e.g., social media, email marketing, online events, in-person events) strengthens bonds and builds trust.

By maximizing these three elements, you create deeper, more meaningful connections with your audience. This approach helps you stand out, fosters trust, and makes you part of your niche's tribe.

Source: Oversubscribed: How to Get People Lining Up to Do Business with You, Daniel Priestley, page 31.

Stay Accountable: Keep Your Marketing Plan Visible

If you want to ensure your marketing plan is executed effectively, keep an accessible copy in front of you and review it regularly, ideally daily or at least weekly. Whether you prefer a printed copy on your desk or a digital version on your tablet, like an iPad or ReMarkable, having your plan readily available serves as a constant reminder of your commitments. This practice keeps your goals and strategies top of mind and helps you stay accountable to your daily, weekly, and monthly marketing routines. By consistently revisiting your plan, you reinforce your dedication to achieving your marketing objectives and can quickly adjust your actions as needed.

Strategically Schedule Your Content for Optimal Engagement

Plan your content around the calendar. It's important to post consistently, especially when your audience expects it. However, there are specific dates, like holidays, when engagement typically drops. Let the calendar guide your content strategy. Reserve your best material for when you're likely to have the most eyeballs, and opt for filler content on days when capturing people's attention is more challenging.