Digital Content Marketing for Investment Managers - 5 Key Themes to Consider

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1 Digital Content Marketing for Investment Managers Five Key Themes to Consider Communications for the Investment Management Industry

2 Communications for the Investment Management Industry Introduction: What s going on here? Content marketing. Social media marketing. What are they and how can they help investment managers in their sales and marketing efforts? Content marketing is a marketing strategy in which content (blog posts, ebooks, newsletters, white papers, etc.) is created on a sustained, long-term basis to promote a firm s expertise. Content marketing offers clients and prospects an ongoing, affirmative argument about an investment manager s value proposition. Social media marketing is a way of distributing this and other marketingrelated content by way of social media channels (Twitter, LinkedIn, Slideshare, etc.). The beauty of content marketing and social media marketing is that they maintain a perfectly symbiotic relationship in which the firm s message leverages the nearly limitless reach of social media. Content is the product Social media is the distribution network 2 of 15

3 So, if investment managers believe their marketing efforts should describe how they help clients to reach their goals and solve their most pressing fiduciary issues then content marketing and social media marketing are the next logical steps in staying competitive and ensuring the firm s long-term viability. In many ways, content marketing and social media marketing represent the idea that the more things change, the more they stay the same which in the end changes everything. While not an exhaustive list by any means, what follows are five important themes investment managers should understand when deliberating whether to develop a content marketing and social media marketing strategy. 3 of 15

4 Communications for the Investment Management Industry Key Theme #1: Leveraging the Network Effect Generating thoughtful content is among the best ways investment managers can demonstrate their firm s unique value proposition. And when that content is distributed via social media, it takes advantage of a key investing principal straight from the desk of Warren Buffett: the network effect. The network effect describes the phenomenon of how goods and services become more valuable as their use spreads. When an investment management firm creates useful, actionable content for its clients and prospects, that content is often subsequently shared among a secondary market of colleagues, clients, and professional networks, which then can be distributed among a tertiary market, and so on. As such, the reputational and professional value of the content to its creator grows as its reach extends beyond the initial distribution network. Social media and related digital platforms (LinkedIn, Twitter, Google+, marketing) enable easy sharing and thus a potentially global reach for a firm s content. It is for this reason that social media marketing is among the most efficient distribution models in history. 4 of 15

5 Key Takeaways 1 Generating useful content is among the best ways to demonstrate your firm s value proposition 2 The network effect ensures the value of your content grows as it spreads beyond your network 3 Social media marketing is perhaps the most effective way to distribute content to your target market and beyond 5 of 15

6 Communications for the Investment Management Industry Key Theme #2: Growing AUM All marketing initiatives must ultimately result in asset growth. As such, it is important for investment managers to understand exactly how content marketing and social media marketing help augment their firm s sales and marketing functions. Most sales and marketing professionals would probably agree that timing is everything. Content marketing enables a firm to maintain a constant presence without being intrusive. Content marketing makes an affirmative case for the firm on an ongoing basis not just quarterly, or during an initial introductory meeting. It allows clients and prospects to see a firm in the context of the daily, weekly, monthly, and annual changes to the market and industry as a whole. Content marketing steadily conditions clients and prospects to a manager s particular way of thinking, and helps a manager tell their story more effectively. It allows for an explanation of their investment philosophy and process in an important context: how it helps the manager to navigate the opportunities and pitfalls of the real world. And when real money is at stake, prospects consider this context a non-negotiable prerequisite for investing. Simply put, content marketing is about building trust. 6 of 15

7 Key Takeaways 1 Timing is everything. Content marketing allows for a constant, yet unobtrusive presence 2 Content marketing steadily conditions prospects to your way of thinking 3 Content marketing is about establishing context and building trust between a manager and their prospects and clients 7 of 15

8 Communications for the Investment Management Industry Key Theme #3: Maximizing the Value of Touchpoints "Touchpoints are the channels which link an investment manager with their clients and prospects. The idea of touchpoints is important because no matter how well a firm may know its clients, there are blind spots which can effectively undermine any advantages it may have as it relates to delivering content. As such, using a varied combination of touchpoints helps solve two content delivery difficulties: timing and delivery. For example, how many marketing managers can say with certainty when each of their clients and prospects are most receptive to content marketing? Monday afternoon? Thursday at lunch? At the park on Saturday morning? And what is the preferred way to receive delivered content? Do clients and prospects prefer e-newsletters? Video? Twitter? LinkedIn? Google+? E-books? Blogs? Old-fashioned snail mail? Even the most well-connected marketer has little idea about the individual preferences of each client, which is why establishing multiple touchpoints creates more opportunities for your content and its audience to find each another. 8 of 15

9 Key Takeaways 1 "Touchpoints are channels linking an investment manager with clients and prospects 2 Using a varied combination of touchpoints helps mitigate two content marketing difficulties: timing and delivery 3 Multiple touchpoints provides an audience ways to find content, even if they aren t specifically looking for it 9 of 15

10 Communications for the Investment Management Industry Key Theme #4: Differentiation from the Crowd The investment management industry has become close to a commodity industry in recent years. While distinctions among investment philosophies and strategies certainly exist, the often-subtle (yet important) nuances which characterize individual firms can be easily lost in what is an everincreasingly competitive marketplace. Intensely competitive markets demand marketing strategies which accomplish three important descriptive tasks: an explanation of who you are, what you do, and why. Those three points must clearly express an investment management firm s unique value proposition, thus establishing the messaging which will provide clear differentiation from the competition. Content and social media marketing strategies are among the best ways for investment managers differentiate their investment philosophy and process. 10 of 15

11 Key Takeaways 1 The broad investment categories are clogged with an ever-growing number of firms competing for clients 2 Intense competition demands a marketing strategy which clearly explains who you are, what you do, and why 3 Content marketing and social media marketing establish clear differentiation between investment managers 11 of 15

12 Communications for the Investment Management Industry Key Theme #5: Finding the Flip Side to Client Service One of the common complaints against content marketing is that many of the traditional metrics used to evaluate the return on investment (ROI) of a business initiative are incongruent with measuring content marketing outcomes in the investment management industry. While it can, admittedly, be difficult to measure the direct effect on AUM, that does not mean there is no added benefit to the firm s bottom line. If an investment manager was asked, what is the ROI of your client service effort, most would likely concede there isn t one. Content marketing has a similarly nebulous, yet equally important role: over time, a well-executed content marketing strategy will result in a detailed library of thought leadership, with social media marketing creating new avenues to distribute and access that content. Investment managers thus are best served by thinking about content marketing as the flip side to client service: content marketing and social media marketing are an up-front investment in establishing credibility with prospects, while client service is the back-end investment which helps maintain those hard-won clients. 12 of 15

13 Key Takeaways 1 Measuring the ROIs of content marketing/ social media marketing and client service efforts are similarly difficult 2 If client service is the cost of keeping clients happy, then content marketing is what you do keep your prospects happy 3 Content marketing will enable the development of a library of thought leadership, easily accessed via social media 13 of 15

14 Communications for the Investment Management Industry Conclusion: Dress for the job you want, not for the job you have In recent years, the largest investment management firms have been aggressively employing content marketing and social media marketing strategies. So, if it s good enough for them But even if we ignore the keeping-up-with-the-joneses arguments, investment managers must always remember that there are no shortage of places for investors to take their money, but precious few offering clear differentiation beyond their most recent quarterly performance. All else being equal (i.e.: approach, philosophy, performance), which investment manager will seem poised to offer such added value? The one who communicates regularly, with a deep library of commentary and thought leadership that spans several market cycles, and is available across multiple platforms ~or~ the one with a rarely-updated website, jargony content, and a comparative reluctance to engage their clients and prospects on a regular basis? Content marketing and social media marketing are two of the most efficient ways for asset management firms to provide such value in a highly competitive industry that is growing more so every year. 14 of 15

15 2015 Daniel Quinn Communications Contact: Daniel Quinn Services: Digital content for content marketing & social media marketing Newsletters, pitch books, reports, RFI/RFP/questionnaires Institutional investment committee & consultant presentations Website information architecture & content strategy Project management 15 of 15