Branding the Boutique Advisory Firm

Transcription

1 DECEMBER 2011 Branding the Boutique Advisory Firm Table of Contents Introduction Why is a Brand Important? What Makes A Brand Work? Why Does Branding Make Sense for an Independent RIA? Branding Your Firm Developing A Winning Brand Identify Your Strengths Identify Your Value Proposition... 3 Know Your Target Client Know Your Competitors Evaluate Your Current Brand Carry Out Your Mission in All Points of Client Contact Create A Visual Identity for Your Firm Introduction The origins of branding can be traced back as early as Ancient Egypt with the branding of livestock. Later, merchants began marking their shipments and craftsmen began using identifiable marks on their work. Though the idea of branding has evolved over the centuries, it is still equally as relevant today, responsible for a multi-billion dollar industry. A company s brand encompasses so much more than the physical design of a logo or corporate letterhead. A brand includes all the perceptions, attitudes and ideas that identify a company, product or service. A brand is the promise of what will be delivered, as well as an evaluation of what has already been experienced. This means that all advisory practices or firms, whether they realize it or not, have established a brand. This white paper will look at the importance of branding for independent Registered Investment Advisors, what makes a strong brand and steps to consider when creating a brand. Just as the ancient Egyptians branded their livestock to tell them apart from the growing stampede around them, advisors must establish a brand that effectively demonstrates what their firm is able to offer so they can grow market share while continually satisfying current clients. A brand is the promise of what will be delivered, as well as the evaluation of what has already been experienced. Take It To The Streets Summary why is a brand important? Every advisor has the objective of maintaining a healthy business, whether it be through earning new business or retaining valuable clients. Building a strong brand is an important means to that end. Produced in collaboration with: The goal of branding is not simply to get prospects to choose one firm over another; it is part of a larger effort comprised of building a strong value proposition and the capability to consistently deliver on that value proposition in a way that resonates with your target client. Your firm s culture, visual identity and service models are also key components of building a strong brand. 1 Establishing Trust the Advisor-Client Relationship Branding the boutique advisory firm 1

2 A strong value proposition is key that distinct offer describing the quantifiable benefits extended to potential clients. what makes a brand work? A brand encompasses all the experiences and perceptions customers and clients have, and a brand that works well builds a sense of trust and positive feelings. Known brand images are processed in the part of the brain associated with positive emotions, while unfamiliar brands often activate areas of the brain associated with negative emotions 1, according to a recent study by the Radiological Society of North America. A candy bar labeled Chocolate Peanut Bar will not invoke the same feelings as one labeled Snickers. Marketing strategist and consultant Scott Talgo put it this way, A brand that captures your mind gains behavior. A brand that captures your heart gains commitment. A strong brand captures the minds of prospective clients, and the hearts of those who are already clients or customers. In pursuit of growth, an advisory firm may brand itself as a fixed income manager with supporting communications and seminars that speak to the needs of a specific target. This activity captures the minds of prospective clients. However, to retain business and capture the client s heart, the same firm might implement a company policy to follow-up with top clients every month, just as a way to make them feel important and top of mind. Brand Contributors A brand that captures your mind gains behavior. A brand that captures your heart gains commitment. Scott Talgo A brand, like any team, is only as strong as its weakest link. A brand may be weakened when a client has a bad customer service experience. Similarly, if a portfolio manager doesn t return a client s phone call in a timely manner, it may weaken the brand of the advisory firm. It is important to have an established brand that clearly differentiates your firm from your competitors, inspires trust and offers perceptible value. For that reason, it s important for firms to establish what promise(s) to clients should be upheld and implemented during every meeting, phone call and speaking engagement. Remember, every point of contact shapes the firm s brand in either a positive or negative way. The key to creating a strong brand is to concentrate on key strengths and build an identity that doesn t overpromise but can set a firm apart from others. The key to maintaining that brand once established is to make sure the brand identity and values are communicated and delivered consistently every day. A brand promise is the commitment made to clients that identifies everything they should expect from all interactions with a firm s services and people. why does Branding make sense for an independent RIA? Establishing a strong brand for an independent advisory firm allows you to: Compete effectively The fact is, there are more financial advisors competing for the same assets. A strong and visible brand connotes strength and value. Differentiate your services An advisory firm doesn t want to get lost like all those unbranded cattle in Ancient Egypt that looked alike. A strong brand will separate you from the herd and help you attract your target client. A well-branded retirement income planner will attract soon-to-be retirees. A clearly defined multi-family office will draw family wealth. 1 Brain Branding: The power of strong brands, neurosciencemarketing.com, November Branding Establishing the Trust boutique in the Advisor-Client advisory firmrelationship

3 Become the Expert Effectively branding a firm means who you are will ultimately become synonymous with what you do. If advisor Jill Smith builds the credentials and client base around managing retirement plans for small businesses, her firm will soon be known for this expertise. Keep in mind that advisory firms must follow specific advertising regulations when it comes to listing professional designations, so check with your compliance resource or legal counsel before listing any credentials in your advertising. Build trust Having a firm with a name people recognize is commendable. Having a solid and consistent brand reputation to go with it can help earn your clients and prospects loyalty and continued business. Enhance and standardize customer service A brand promise forms the basis for external as well as internal communications. The latter, especially, helps you build the foundation for a strong culture of service. Make marketing easier When a brand works, it does the marketing for you. Branding your FIRM Many advisors employed by well-known national financial services firms both benefited from the strengths of the brand and suffered from their weaknesses. This was particularly true during the recent financial crisis. Some advisors had to defend their firms to their clients when trust had been shaken and perceptions had soured. A CNN poll in 2008 found that most Americans were distrustful of Wall Street and the people who make a living from it 2. The good news is that as guardians of their own name and firm, independent advisors have more control and influence over how their brand will be perceived. It is true that this can be a daunting responsibility. But the freedom to establish a name and brand that reflects your own vision, character and business practices is unique to independent Registered Investment Advisors. DEVELOPING A WINNING BRAND Developing a brand is a multi-step process which requires effort and discipline over time to ensure its continued Access to MARKETING Resources Through TD Ameritrade Institutional s Affinity Services Program, you have access to over 100 third-party professional businesses that offer a wide range of business building and operational tools at preferred rates. To learn more please visit Veo >Resource Center>Practice Management>Affinity Services. evolution in the right direction. The following are recommended steps to help you establish and maintain a strong brand for your advisory firm. 1. Identify your strengths You ve heard the expression, Jack of all trades, master of none. This is not how to build an effective brand for a business. An independent advisory firm is built around matching the competencies and skills of its team to the needs identified in the marketplace. For instance, after the 1997 Taxpayer Relief Act which created the basis for 529 college saving plans, many advisors saw a need to educate parents on the intricacies and provisions of these plans. The fulfillment of a particular need such as this is where your brand will blossom. A brand grows to include all the mental associations that your clients, prospects and centers of influence make about your firm or service. Whether the mental image is broad (they handle investments) or specific (they are the largest value manager in the state), the brand leaves a mark in the hearts and minds of those who come in contact with your firm. 2. Identify your value proposition What are the strengths and key differentiators of your practice? What part of your investment process, your particular client service approach or philosophy is unique and compelling? These are the questions to ask when looking to establish a brand and brand promise. The answers to these questions will establish the foundation for your value proposition. You may consider tapping into your partners, staff, centers of influence and loyal clients who can offer different perspectives into what the strengths and value of your services are to today s investor. Once you have collected this information you may see themes emerge, some of which may validate your thoughts and others 2 CNN Poll Confirms Public s Distrust of Wall Street, investmentfraudlawyerblog.com, December 23, Establishing Branding Trust the Advisor-Client boutique advisory Relationship firm 3

4 you may find surprising. Next, you will need to determine what you want to highlight or showcase as part of your brand and brand promise. These are the messages you will communicate to your clients, prospects and the market place. in accessing cost-effective retirement planning services online. It has experienced incredible growth and now does business in all fifty states. This is a great example of targeting a specific client base and building a business around a particular need and interest. 3. Know your target client Once you ve identified the key strengths and differentiators that set you apart from others in your market, you need to identify your targets. Author and marketing/management guru Peter Drucker may have said it best, The aim of marketing is to know and understand the customer so well, the product or service fits and sells itself. The more you understand the people you want as clients, the better you can craft a brand and the marketing tactics to attract new business. For instance, engaging young business owners just starting their careers would require a completely different approach from motivating a group of retirees. Understand where they are in their lives, what inspires them and what concerns you can speak to that will directly address the needs of that market niche. Ask yourself the following questions to get started: How would you describe the investor type who fits particularly well with the value proposition you have to offer? What type of people are they? How old are they? Do they share common interests? What are their worries in life? Where do they live? What motivates them? For example, one particular firm recognized that small businesses with retirement plans and fewer than 100 employees were not being served efficiently. It identified its target customer as small and growing businesses interested The aim of marketing is to know and understand the customer so well, the product or service fits and sells itself. Peter Drucker 4. Know your competitors The ancient playwright Aristophanes once wrote, The wise can learn many things from their enemies. The essence of this holds true today as well. Not necessarily that your competition is an enemy, but that much can be learned, both good and bad, from knowing what your competition is doing. Just as you should identify your own strengths and challenges when crafting a brand, analyze those of other financial and investment advisors in your market. What is their brand promise to clients and where do their centers of influence seem to be? And most importantly, what are they missing and where can you play? You can hone in on creating a brand around your unique benefit and carve a successful niche. 5. Evaluate your current brand We have determined that if you are currently running a business and have clients, you already have a brand. So what does your current brand look like? Before a brand strategy can be crafted, you need to take a close look at the essence of your business today. Based on your firm s core strengths and target prospects, here are some areas to evaluate: Review the firm s mission statement or vision of service for clients. Make sure it is updated and viable. Be sure you and your team live this mission every day in all interactions with clients and prospects. Assess your current marketing material and website. Does it speak to your identified strengths and the needs of those you want as clients? Be cognizant of effectively conveying the real, targeted solutions you can offer when representing your firm at your own client or prospect events and when networking at other events. Now is the time to lay everything out on a table that speaks to your business and look at it collectively. Do your 4 Branding Establishing the Trust boutique in the Advisor-Client advisory firmrelationship

5 materials make sense and are they easy to understand? Are they focused? Chances are, if they confuse you, they will confuse others. If your mission and purpose are well understood but your communication vehicles are weak, it s time to work on new, crisp and clear client and prospecting materials. 6. Carry out your mission in all points of client contact No matter how skilled, educated or experienced a service provider is, the entire client experience can either make or break the brand. Sales and business author, Arthur F. Sheldon once said, He profits most who serves best. Let s use the example of the number one primary care doctor in the state. He or she is experienced, friendly, informative, gentle and easy to talk to. Sounds like a recipe for success. But let s also say that getting an appointment is like scheduling fifteen minutes with the president. And suppose this accomplished doctor plays golf every Friday in lieu of office hours. Perhaps the receptionist never returns calls or unreliably forwards messages. This doctor s brand is more than the experience in the examination room. It also includes experience with staff, availability for appointments and their prompt response to calls or inquiries among other things. Despite A+ qualifications and performance, patients may start leaving in search of better client service. The same is true for any product or service. A Newspoll survey indicated that in some service fields, up to 21% of respondents left a firm and switched to a new provider solely based on a poor customer service experience. And of those aged 50-64, up to 57% would switch providers as a result of bad customer service 3. The fact is, people often prefer a particular brand not so much because of what they re buying, but because of how they re treated by staff and employees. This is the brand experience, and this is where the brand-heart connection takes place that retains clients and boosts referrals. Questions to consider to evaluate if your firm is carrying out its mission: How well does your firm interact with clients? How is your bedside manner in terms of talking frequently, remembering the personal and family interests of your clients? How much of your relationships is strictly business? Are phone calls returned promptly? When they hang up, do your clients feel they are a respected friend or simply an asset under management? Living the brand every day means being as attentive to the client you ve had for fifteen years as you are to the new big one. He profits most who serves best. 7. Create a visual identity for your firm Creating a visual identity for your firm is crucial to building the continuity and tone that will represent your business. As a small business, the key is to create a unique look, with a recognizable logo and use of colors that work well and are consistent across all marketing and communication vehicles, such as: Stationery/letterhead Collateral Arthur F. Sheldon Physical space/signage Websites and online media Presentations Events/conferences The look and messaging of your brand is what will become recognizable to others over time, and marketing professionals who understand your brand s mission and the intricacies of corporate identity packages can help you successfully craft effective content and design. Successful visual corporate identity leads to effective brand recognition by maintaining continuity across all printed and electronic representations of the firm. 8. Take it to the streets This is the most important step. An award-winning identity campaign with all the brochures, pitch books and websites that promote your value proposition will get your brand 3 Study Examines Importance of Customer Service, Contact Center Solutions, callcenterinfo.tmcnet.com, February 11, Establishing Branding Trust the Advisor-Client boutique advisory Relationship firm 5

6 nowhere unless you get out there and make it known every day. Here are just a few examples: Network where your prospective clients are and live your brand. Hold seminars that speak to what you know and showcase your brand to the right targets. Sponsor community events that tie in with the interests of your clients and provide visibility. A great concept sputters if it isn t shared. Take the invention of sliced bread as an example; despite the technology and patent, in the 1920 s Otto Rohwedder s invention of sliced bread actually didn t get much attention for a good fifteen years. It wasn t until Wonder took his greatest thing and pushed it to the masses as sliced bread to spread 4. The rest is history. Summary A brand is not simply a logo or company slogan. It isn t something printed on a box or splashed across a TV screen. Your brand is anything that contributes to the identification of who your company is and what you have to offer. A strong brand is powerful in its simplicity. Its ability to communicate a solution to the needs of a determined group of people. That includes everything from inviting acquaintances to breakfast or lunch, to writing copy for a seminar invitation, to staying late and listening to a client talk about his niece s wedding. Keep your brand focused, memorable and client-centered and it will serve you well. Contact a Strategic Relationship Consultant to learn how we can help uncover your untapped potential tdainstitutional.com You must do the same. You are the greatest ambassador for your brand, and it s up to you to plant it, cultivate it and ultimately enjoy its fruit. 4 Seth Godin on Standing Out, Ted.com, posted April Branding Establishing the Trust boutique in the Advisor-Client advisory firm Relationship

7 About LederMark Communications LederMark Communications is a marketing strategy and communications firm to the financial services industry, including independent registered investment advisory firms. LederMark offers its financial services clients big-picture thinking to marketing campaigns, practice building, branding and communications. To learn more about LederMark Communications, please visit www. ledermark.com. TD Ameritrade and LederMark Communications are separate and unaffiliated firms and are not responsible for one another s services and policies. Examples are provided for illustrative and informational purposes only and are not recommendations or solicitations for a particular service or product. Results for each advisory firm will vary. TD Ameritrade does not monitor, and is not responsible for, communications between advisors and their clients. About TD Ameritrade Institutional At TD Ameritrade Institutional, we never forget that it s your business. We are here to support you in making it thrive. When you work with us, you will get the dedicated commitment of our people, access to a range of resources and a strategic relationship all designed to increase your potential and help you achieve your business vision. Our offering is part of what differentiates us. We deliver smart operational solutions, innovative technology, customized practice management and flexible investment solutions, all with one goal in mind impeccable service. We share your belief that being a fiduciary is one of the best ways to serve your clients. As steadfast advocates for independent advisors, we continually speak out to ensure that your needs and the needs of investors are always considered within the regulatory environment. We consistently place your needs at the foundation of our business decisions. You can count on TD Ameritrade Institutional to put you first, so you can do the same for your clients. When you choose to work with us, you ll see how deeply we are committed to your success. Establishing Branding Trust the the Advisor-Client boutique advisory Relationship firm 7

8 For more information about this research or the services of TD Ameritrade Institutional, please call or visit tdainstitutional.com. TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank TD Ameritrade IP Company, Inc. All rights reserved. Used with permission. TDAI /11 8 Branding Establishing the Trust boutique in the Advisor-Client advisory firm Relationship