As a wealth management firm, your primary objective is to manage your clients’ assets and provide them with the best possible investment advice, along with maintaining a trusted advisor relationship. While this is undoubtedly crucial to the success of your business, there are additional, no less critical, aspects to building trust in those relationships. In today’s hyper-competitive marketplace, it’s equally important to have a strong public relations strategy in place to enhance your brand’s reputation as a thought leader in the industry and drive business growth through increased exposure.
But how much can PR help a company grow? It’s difficult to provide a specific growth percentage for companies with PR compared to those without PR, as many factors can impact a wealth management business’s growth, including market conditions, competitive landscape, and internal factors, such as management and strategy.
That being said, studies have shown that companies that invest in public relations tend to outperform their peers. For example, a study by the Association for National Advertisers (ANA) found that companies that invested in PR during the 2008 financial crisis saw an average increase in revenue of 277% from 2007 to 2012, compared to just 19% for companies that didn’t invest in PR.1As a potential economic recession looms, leaning into PR before a crisis hits can protect and even grow your company in times of turmoil and uncertainty.
One survey found that 89% of financial advisors attribute gaining new clients to their social media activity.2 Another study was conducted by HubSpot, which found that companies that build a business blog generate 55% more website visitors than those that don’t.3
While these studies are not specific to the wealth management industry, they demonstrate the potential benefits of investing in PR for business growth. In the highly-competitive and regulated wealth management industry, effective PR can help firms differentiate themselves, build trust with clients and ultimately drive growth.
Still not convinced? Here are five more reasons why public relations is critical for your wealth management business development strategy:
- Establishing trust and credibility: Building trust with your clients is essential for any wealth management firm. Clients need to believe that you have their best interests at heart and that you are knowledgeable and experienced enough to help them achieve their financial goals. A well-crafted public relations strategy can help you establish trust and credibility with your target audience by showcasing your firm’s expertise, thought leadership and commitment to client success. By positioning your firm as a trusted authority in the industry, you’ll be more likely to attract and retain high-net-worth clients.
- Attracting new clients: In today’s digital age, most people do their research online before making any major financial decisions. A strategic public relations plan can help you capture the attention of potential clients who are searching for wealth management services online. By creating a strong online presence through media coverage, social media and other digital channels, you can increase your visibility.
- Retaining existing clients: While attracting new clients is essential for business growth, retaining existing clients is equally important. A strong public relations strategy can help you maintain strong relationships with your clients by keeping them informed about your firm’s latest news, events and investment insights. By regularly communicating with your clients through newsletters, social media and other channels, you can demonstrate your firm’s commitment to their financial success and keep them engaged with your brand and can also lead to increased referrals by staying top-of-mind.
- Enhancing your brand’s reputation: In today’s competitive investment office environment, your firm’s reputation is everything. A strong public relations strategy can help you enhance your brand’s reputation by showcasing your firm’s unique value proposition, differentiators and strengths. By consistently communicating your firm’s message through media coverage, thought leadership and other channels, you can establish your firm as a leader in the industry and create a positive perception of your brand among your target audience.
- Crisis management: No matter how well-run your firm is, there is always a risk of a crisis that could damage your reputation. Whether it’s a cyber-attack, regulatory investigation, industry mishaps or a client complaint, a crisis can have a devastating impact on your business if not handled properly. Effective public relations can help you manage a crisis by minimizing negative media coverage, reassuring your clients and restoring confidence in your brand. By having a crisis management plan in place, you’ll be better prepared to handle any unexpected challenges that may arise.
To learn more about how Wealth Matters Consulting can support you in developing a public relations strategy to grow your business and better serve existing clients, please contact us.
Sources:
1https://www.ana.net/miccontent/show/id/kp-value-public-relations-during-times-crisis
2https://www.putnam.com/advisor/business-building/social-media