Irvine, CA, July 09, 2024 (GLOBE NEWSWIRE) -- In the next 5-10 years, referrals will matter far less to financial advice prospects than effective digital marketing, according to new research from Ficomm Partners. The 2024 Consumer Insights Study—Digital Marketing in Wealth Management reveals that of the 1,100 financial advice buyers surveyed, only 29% of respondents required a referral to choose an advisor.
While 60% of respondents over 60 say they’ll only hire an advisor based on a referral, only 29% of those nearing retirement report needing a referral to hire an advisor. There’s an even more dramatic shift compared to the younger age groups: only 17% of respondents under 44 say they require a referral. Instead of relying on referrals, 45% of respondents nearing retirement and 57% of respondents under 44 hired financial advisors based on digital marketing.
This change in referral behavior among under 60 buyers indicates that the effectiveness of referrals as a lone strategy for organic growth will plummet.
“The survey results align with what we have heard anecdotally,” said Meg Carpenter, CEO of Ficomm Partners. “As these cohorts age, their habits won’t change. They’re used to researching and making purchases digitally and tend to rely on social proof such as online reviews and clearly defined digital brands.”
In addition, the survey indicated that no one digital channel was superior to another, rather that a mix of digital channels was required to generate enough touchpoints to move a prospect into the funnel.
“The question isn’t ‘Is your firm engaging in digital marketing?’” said Mary Kate Gulick, CMO at Ficomm Partners. “It’s ‘Do you have an integrated, multi-channel digital marketing strategy?’ And if the answer is no, it will be challenging to meet your organic growth goals in the coming years.”
The research also showed that 64% of the effective marketing tactics were digital, and showed that not one tactic outshone another. A minimum of 2 digital interactions were required before the consumer took action—with the ideal number of interactions being 5+.
The value of digital marketing will only continue to increase for financial advisors. Referrals will remain an important lead source but can no longer be the exclusive way that leads come into the business. Advisors who want to remain competitive will need to implement an integrated, multi-tactic digital marketing strategy. See the findings of the 2024 Consumer Insights Study—Digital Marketing in Wealth Management here.
About the Study
1,107 consumers participated in the study. The sample is representative of the general population and is balanced across gender, age, and income.
About Ficomm Partners:
Founded in 2012, Ficomm Partners is an embedded growth partner for RIAs and wealth management platforms. Ficomm drives meaningful business results through an aligned marketing strategy and scalable advisor marketing service, leveraging decades of industry expertise, multiple disciplines, and our human approach to extend the meaningful impact of financial advice. For more information about Ficomm, please visit www.ficommpartners.com or follow us on Twitter, LinkedIn, TikTok and Instagram.
