Marcus Sheridan of The Sales Lion claims that 70% of people who contact a company already know they will do business with them. That’s because they’ve done their research online before contact. This is even true of people looking for a financial advisor. Therefore, an effective, optimized online presence is required to compete in the modern finance industry. 

Today’s empowered consumer has changed how companies acquire leads, prospects, and clients. This includes financial planning companies, whose legacy sales methods have been based on word of mouth, face-to-face networking, and traditional advertising. But, while many financial planners and advisors feel that their businesses are still driven solely by these methods, the data shows that their target clients are researching online.

For example:

• 71% of prospects prefer independent research over interacting with a person.
• 99% of ultra-high-net-worth individuals use social media, spending around 90 minutes daily browsing them. 
• 79% of Americans representing the millennial or Gen Z age groups have gotten financial advice from social media.
• 94% of financial advisors use social media for business, and over half reportedly gained new business from that social media activity over a year. 
• 50% of investors say social media impacts whom they hire as a financial professional. 

Financial planning and advising businesses are powered by relationships. Savvy financial advisors understand that the relationship with today’s consumer begins with the awareness stage of the buyer’s journey which usually starts with a consumer search online. Also, contrary to popular belief, this is as true for Baby Boomers as it is for younger generations. 

Financial advisors who understand the buyer’s journey of today’s consumer have taken steps to learn and embrace inbound marketing methodologies. Inbound marketing involves acquiring leads and prospects online by positioning your business to be found when consumers search for solutions to their problems. With effective keyword research, search engine optimization (SEO), social media marketing, and consistent content creation, potential clients are drawn to the sites of these well-positioned advisors. 

Once at an advisor site that has embraced the inbound marketing methodology, consumers will find the answers to their questions, watch engaging videos, read interesting and current blogs, and take action to acquire more information that will help lead them through the buyer’s journey. Eventually, this journey should include personal interaction with the advisor, but it’s only when the time is right and the consumer is ready to listen, on their terms.

Networking and word of mouth will always be an important part of the client acquisition process in financial advising. Financial advisors who understand and embrace inbound marketing and combine that with legacy strategies are far better positioned to keep feeding the pipeline of leads, prospects, and clients.