Financial Advisor Marketing and the Latest Fiduciary Ruling

The Department of Labor (DOL) implemented a new Fiduciary Rule that’s making waves within the financial community. On June 9th, 2017 the DOL expanded the “investment advice fiduciary” definition under the Employee Retirement Income Security Act of 1974 (ERISA). The fiduciary debate is a hot topic, even celebrities like John Oliver and Suze Orman have joined the conversation when talking about investments and retirement plans.

This could mean big changes for those who work off commissions, like brokers. But the real question is, what does it mean for financial advisors? According to a study done by Fidelity, 73 percent of advisors anticipate a negative impact on their practice. Although, that doesn’t have to be the case.

ThinkAdvisor says the top reasons clients leave their advisors are lack of honesty, trustworthiness, transparency, and communication. Therefore, advisors willing to embrace transparency have the ability to build more credibility and in turn gain more share of wallet from their existing customers.

The bottom line: Clients are looking for advisors they can trust, who stay in touch and share their expertise year round.

What does this mean for financial advisor marketing?

Stop selling: This goes way beyond topics like 401K rollover advice or the benefits of an annuity. Try looking at your marketing from your network’s perspective. It’s not about “what you want them to read”, it’s about “what they want to read”. When you consistently add value with content that appeals to your readers, it establishes you as an open line of communication.

Providing more education about strategy and ideology builds trust with your current clients, opens a dialogue with prospects, and leads to new opportunities.

Communicate with customers where they are: Online. With today’s demand for transparency, there is no such thing as too much communication. Two-thirds of Facebook users are over 50, nearly half (45%) of individuals earning over $75K use LinkedIn, and nearly one-third (29%) of college-educated internet users are active on Twitter. Communicating with your clients in a compliant way and connecting with their heirs on social media is more important than ever.

Social Media can help you expand your sphere of influence, alert you to money in motion events and keep you in front of your current clients, and prospects.

Invest in Marketing Automation: Having a consistent and effective marketing plan requires time and expertise. And we know you’re already wearing a ton of hats. Let us take on the burden of marketing to your clients with content that speaks to their interests. This opens up the lines of communication so you can have high-value conversations with people who are ready to invest.

Ditch out-of-date content libraries: Not all content is created equal. Things change quickly. Just think about how the current news cycle operates. Sending articles that are years old will make you look dated and out of touch. A great piece of content sent at the wrong time can be ineffective and leave your readers disengaged. Even the most popular content inventories fail to talk about things that are relevant to your audience right now, don’t get stuck in the past!

The easiest way to succeed with your marketing is to send content that is fresh, trending, topical, and interesting to your audience.

Wrap-up

The Department of Labor’s Fiduciary Rule has ushered in new challenges but we’re here to help lessen the impact. By remaining transparent, staying in touch, and adding value with great content, you can turn this new ruling into an opportunity for your business. Not sure how to get started? We can help!