by Nicola Mitchell, Managing Director, Mitchell Moneypenny Ltd

Nicola Mitchell, Managing Director, Mitchell Moneypenny Ltd

With enormous competition from direct providers and online personal finance websites, an adviser firm wishing to retain and build its client base must ensure that its marketing strategy is totally foolproof. A well thought out strategy, encompassing the right mix of client communication, prospecting, PR and possibly advertising, could make all the difference between success and failure.

For the vast majority of smaller adviser firms the biggest concern with marketing-related activities will of course be cost. But, in reality, the more professional way to view this is in exactly the same way as any individual entering into an investment opportunity. Whilst we all know that bottom line marketing costs vary enormously, so too does the return on investment (ROI). The secret with good marketing is to identify those activities with maximum ROI and minimise or eradicate those that do not put real value back into the business. Measuring this can be simple in some areas, but not in others, and don’t forget that your biggest asset, your current client base, should not be left out of the equation.

At a smaller company level, whilst you may not have marketing expertise readily at hand, there are plenty of resources now which can be tapped to give you this type of help for little or no outlay. Organisations like IFA Promotion (www.unbiased.co.uk) are usually a rich source of helpful guides and tips but inevitably the most accessible support will probably come from good networking with similar minded businesses, sharing problems and solutions.

Online forums, like those provided by 1st Software and several of the major networks, often are good places to start, giving you freedom to exchange ideas and pick the brains of more learned colleagues. Finally, don’t write off the big providers. Many of these have excellent extranets and dedicated IFA sites with plenty of support for firms wanting to market their products and services. Why not take a look at some of the recent award-winners: Standard Life (www.ifazone.co.uk) and Selestia (www.selestia.co.uk)?

Regardless of the size of your business, probably the most important marketing disciplines are a solid communications plan, to build existing client loyalty and professional presentation, with a good brand and a website, to support prospecting. Of course, the former relies on having a good database which captures client data and allows you to target your communications with them. Simply remembering birthdays is not enough: knowing when a policy is coming up for renewal and having an attractive mailer (or email) arrive on the right day, can make all the difference.

As the New Year is now upon us, it may be a good time to sit down with a sheet of paper and a clear head so you can revisit your marketing and put thought into preparing a proper strategy. Keep it simple and follow the basic rules:

Firstly, know your client – identify your ideal target client by looking at past profitability and assessing the types of clients you currently have who bring most to the business. If you specialise in a particular area this will also be important. In marketing terms this is referred to as TGI or ‘target group index’ and can be based on social groups, professions and even takes account of interests, lifestyles, hobbies and family groupings.

Secondly, research past leads and identify what has worked best for you. Whilst referrals could be your main lead source, ask yourself whether they are the right type of leads or whether a more targeted activity could produce lower numbers of leads but a higher quality response.

When you have completed these first two steps you should have a clear basis to explore what types of marketing activities will be of most benefit. In terms of expenditure, the usual rule of thumb is to spend at least 10% of total turnover on prospect marketing, to include any activity focused on winning new clients, and a further 10% to focus on communications with existing clients. This may include regular mailshots, newsletters, email bulletins, events and any special promotions.

Researching your market is usually the most vital first step to success, so before embarking on any major new activities or campaigns, try to find out the likely reaction to these with careful trials, possibly amongst good long-term clients. For a major prospecting campaign, a smaller ‘test campaign’ can make a lot of sense and will give you valuable information which you can feedback into the final product.

For the more traditional marketing activities like PR, advertising and direct-mail, the secret to getting these to work for you is usually to take the advice of an expert in these fields. Be sure to produce a good written brief with clear objectives and, where possible, to set targets which you can measure against. It really is that simple!

About Nicola

Nicola Mitchell is the Managing Director of Mitchell Moneypenny Limited, a specialist consultancy firm for organisations operating in the financial services and technology marketplaces. Working with both business to business and business to consumer distribution, Nicola provides advice on all areas of e-commerce business development, marketing, PR, research and strategic planning.

Nicola was formally Group Marketing Communications Director of the eXchange (Marlborough Stirling group) and Sales & Marketing Director of Assuresoft (now Misys).

Prior to her experience with these two leading IFA technology companies, Nicola ran two London-based financial PR agencies and provided strategic marketing and PR services to companies such as AXA Equity & Law, Norwich Union & DBS Management.