Top 10 marketing musts for hedge funds
You’re busy. But that doesn’t mean you can skip marketing – it’s just too important if you’re serious about raising assets.
Emerging and established managers tend to ask us the same questions. What are the right marketing steps I have to take? How can my brand truly represent who I am and what I do? Do I really need a website? When you work with ext., we can help you find the answers you need.
Here are 10 important things that you can do to ensure your fund is launched and/or operating on a solid marketing foundation:
- Design a pitchbook that works for your style of presenting – can you wing it or will you read from a page?
- Be yourself, not what you think allocators want you to be
- Learn how to tell your story
- Know your unique value proposition – be able to say it out loud
- Your pitchbook is essential – make sure it looks incredible and says the right things
- Know your audience – allocators, family offices, HNW investors, etc. all want to hear different things
- Always follow up and stay positive – not every meeting will go well and that’s okay
- It’s your business and your story – but it makes sense to bring in external marketing expertise to ensure your vision and your message are aligned
- Get out and market when things are going well – don’t wait until you’re facing adversity
- Understand that marketing is a profit center (not just an expense) – invest in marketing and it will drive sales
We know you’re busy and that’s why we kept this post short. If you’re too busy to implement these marketing best practices and truly set yourself apart, call us. We can help.
Contact us today at 1.844.243.1830 or info@ext-marketing.com to implement a solid marketing strategy and set your fund apart.
Dig deep to build your hedge fund’s value proposition
There are a vast number of hedge funds hitting the scene every year – 735 were launched in 20171 – with a total of US$3.6 trillion in AUM by the hedge fund industry overall.2 That’s a lot of funds vying for investors’ attention.
To elevate your hedge fund above the fray and pique more interest from investors, you should start with a compelling, well-thought-out value proposition. A value proposition summarizes what makes your offering unique and why it’s well-positioned to deliver performance for investors. It can form the foundation for all your sales and marketing efforts, including your pitchbook and website.
Value propositions can take on many forms and vary in length, but an ideal structure consists of a powerful headline, sub-head and bullet points of all the factors that separate you from the pack. It should take on a tone and use language that resonates with your audience and, above all, be easy to understand.
Understanding your edge may take some soul searching
Figuring out the most compelling competitive advantages of your hedge fund isn’t a quick process. It requires profound self assessment and, perhaps, wider feedback from your team and partners. While these distinguishing factors may not seem apparent at first, if you dig deep enough, you may be surprised with what you find. Here are some avenues you may not have fully explored yet:
- Exceptional leadership. Your management core’s pedigree, pioneering ideas, accomplishments or shared work experience with other leaders may demonstrate a sound foundation and unique formula for success
- Productive culture. A collaborative environment, rigorous debate, uniquely structured team meetings or other distinct cultural traits may help to generate great investment ideas and attract investors
- Proven or potential success. A strong track record of performance immediately elevates your hedge fund above others. If you’re growing, you can still differentiate yourself by calling out past accomplishments that highlight the fund’s potential
- Distinct opportunity. The particular sectors/subsectors, regions, special situations, etc. your hedge fund is focused on – and how you capture this potential – may point to enhanced opportunity
- Special parts of your process. It may seem pretty standard from your vantage point, but your research methodology, proprietary technology, selection criteria or other tactics you integrate are compelling – and may directly delineate you from the rest
Contact us at 1.844.243.1830 or info@ext-marketing.com today if you would like to explore and communicate your hedge fund’s distinct qualities through a persuasive value proposition.
Sources:
1 Hedge Fund Research, Inc., HFR Market Microstructure Report, March 2018.
2 Hedge Fund Research, Inc., HFR Global Hedge Fund Industry Report, Q2 2017.
Canadian regulatory trends – 2019 and beyond
Ongoing regulatory changes in the financials sector don’t tend to get much press, but they do have a significant and widespread impact on our industry. Read on to learn how you might be impacted by the actions of our country’s many regulators over the coming months and years.
Deferred sales charges fade into obscurity
The elimination of deferred sales charges (“DSC”) has been a popular topic in the Canadian financial services industry over the past couple of years. While the Government of Ontario voted against eliminating DSCs, many firms have already eliminated DSC options in their fund lineups. We expect the firm-led end of DSC to continue in 2019 and beyond.
The rise of liquid alts
Liquid alternatives (“liquid alts”) have been on regulators’ agendas for years. After multiple reviews and comment periods, liquid alts are today considered an asset class of mutual funds and ETFs.
Similar to what occurred in the U.S. and Europe when liquid alts were introduced into those markets, liquid alts will be a game changer for the Canadian hedge fund, mutual fund and ETF industries. Many firms launched liquid alt funds ahead of the official release date and we expect many more liquid alts to be launched in 2019.
The CSA Regulatory Sandbox makes waves
The Canadian Securities Administrators (“CSA”) is dedicated to fostering innovation and advice in financial services technologies. To meet this priority, the CSA has launched the CSA Regulatory Sandbox.
Whether they are a start-up or they are already a large corporation, firms can now get exemptive relief from securities laws if they are taking steps to innovate and enhance Canadian payment systems, creating innovations in open banking, and/or making Canada competitive in the field of financial services disruption.
While 2019 may not be the busiest year for our regulators, their efforts to shape the Canadian financial services industry will definitely continue for many years to come.
Contact us today at 1.844.243.1830 or info@ext-marketing.com to find out how regulatory changes will have a direct impact on your marketing efforts this year.
Monday morning briefing – January 14, 2019
Bank and fintech partnerships took a big step forward in 2018. Expected trends for the hedge fund industry in 2019. How to improve the customer experience during digital onboarding. Here’s what matters to millionaires’ children. And much more in this week’s briefing.
Economic/industry news
International Economic Data Snapshot – includes aggregated data of the worldwide economy: Snapshot: International economic data
U.S. inflation rate falls to 1.9% in December: US consumer prices drop for the first time in nine months
The Bank of Canada maintains its benchmark rate at 1.75%: Bank of Canada holds steady as oil slump kills urgency for hike path
The U.S. Federal Reserve Board can take its time with future rate increases: Fed can be ‘patient and flexible’ with rate policy: Powell
Proposal on risk ratings for alternative investments: AIMA, CAIA propose new risk ratings for alternatives
Seeking more ESG fixed income solutions: Advisors say they want more ESG fixed-income options
Fitch to produce data showing how ESG factors affect a companies’ credit rating: Fitch Ratings launches ESG relevance scores to show impact of ESG on credit
RBC and BlackRock to partner in ETF offerings: RBC iShares is now Canada’s largest ETF provider
Regal Assets enters Canada: US alternative investment firm makes Canadian debut
Could ETFs cause systemic risks in a market downturn?: Bear market may increase risks in ETF sector
On the pulse – New frontiers in fintech
Bank and fintech partnerships took a big step forward in 2018: 2018: The year that banks and fintech started to figure things out
TD introduces Clari to its mobile app users: TD integrates chatbot into app
With the payments industry expected to grow, here is how AI can help: How will artificial intelligence ultimately benefit the financial services sector?
Revenues from robotic process automation in banking expected to grow by over 400% by 2023: Robotic process automation revenues in banking and financial services to reach $1.2bn by 2023
Financial services executives believe that big tech companies could enter the retail banking space: Two-thirds of financial decision-makers believe tech giants will offer retail banking in five years
Here is what could be in store for the payments industry in 2019: It’s all about convenience: the payments industry in 2019
The trends you need to know in wealthtech: Wealthtech trends to watch in 2019
The U.S. is falling behind in financial services technology: The US is losing the AI, blockchain & fintech arms race (but is crypto-friendly)
Understanding digital transformation: What is digital transformation in business: Everything you need to know
How to improve the customer experience during digital onboarding: Digital customer onboarding – are you doing it wrong?
Digital transformation slow for financial services firms: Digital transformation challenges firms: survey
Some cryptocurrency predictions for 2019: Crypto forecasts for 2019
News and notes (U.S.)
A look at the hedge fund industry in December: State of the industry – December, 2018
Hedge funds’ performance weak in December: Hedge funds down 0.82 per cent in December
A look at hedge fund winners & losers in 2018 (video): Hedge fund winners and losers in 2018
Expected trends for the hedge fund industry in 2019: Top hedge fund industry trends for 2019
Jeff Vinik to reopen hedge fund: Investing titan Jeff Vinik to reopen hedge fund: ‘The fire in my belly still burns’
Pershing Square starts 2019 strong: Ackman’s Pershing Square fund powers ahead in new year
Private equity year in review: 2018 in review: Top 5 global PE deals, exits & funds
Just over $130 billion was invested in VC deals in 2018: Venture capital investing soared to a record in 2018
Bitwise submits application for bitcoin ETF: Bitwise hopes to crack SEC code with proposed bitcoin ETF
U.S. money market funds gaining assets amid market volatility: U.S. money fund assets rise above $3 trillion for the first time since 2010
Predicting U.S. stock performance: The 30-year outlook for U.S. stocks
High-net-worth topics
Here is what is important to millionaires’ children: What the children of millionaires value most
Why a market-neutral strategy could work in the current market environment: Is it time to put your investments in neutral?
For the high-net-worth, consider these asset protection strategies: Asset protection of high net worth individuals
Polls & surveys – What financials are saying
Higher rates and volatile markets will affect Canadian’s wealth in 2019 (RBC): Expect wealth creation, homeownership challenges in 2019: RBC
Advisors should take some time to discuss bear markets with their clients (Hartford): Warning to advisors: Your clients don’t always listen to you
49% of Canadians do not have any emergency savings (Refresh Financial): 53% of Canadians live paycheque to paycheque
Women are worried about not having enough money for retirement expenses (HSBC): Women more worried about financial security in retirement than men: survey
For financial marketing and investment commentary help, contact us at 1.844.243.1830 or info@ext-marketing.com.
Welcome to the era of video
We’ve entered a new era in financial services marketing and communications – the era of video.
Across all industries, including financial services, audiences are turning to video for education and research. In fact, the numbers are staggering and don’t show signs that they will slow any time soon. HubSpot recently revealed 72% of people would rather use video versus text to learn about a product or service, while 85% of people say they’d like to see more video from brands in 2018 (Source).
“This is good news for financial services firms,” says Catherine Reale, Head of Canada at Asset TV, “as video is a highly efficient way to communicate – it’s scalable, cost-effective and helps you manage regulatory issues regarding total spend per advisor. But more than all of that: it catches your audience’s attention.”
Let’s explore some of the key reasons why video is presenting financial services firms with great opportunities in 2018 and beyond.
“72% of people would rather use video versus text to learn about a product or service and 85% of people say they’d like to see more video from brands in 2018.” (Source)
Extend your reach
Changing media patterns – especially the “cutting the cord” phenomenon – are undeniable. People are shifting away from traditional media, such as television and radio, to more digital channels, such as watching video on their computers and phones. These are massive secular trends that are unfolding quickly across the globe.
A similar shift is seen in the rapid adoption of mobile. People are becoming more and more comfortable with banking, shopping and playing games on their phones. As such, video is booming on mobile as well – social video generates 1,200% more shares than text and images combined (Source). By switching some of your resources to video that can be shared on social media and increase your financial services social media marketing presence, you’re capitalizing on a major trend that will increasingly work in your favour.
“Social video generates 1,200% more shares than text and images combined.” (Source)
Engage your audience
Video is an engagement tool like none other. Why? Because it helps people remember your message. The data around this is quite dramatic. People retain 95% of a message when they view it on a video compared to 10% when they read it in text (Source).
If you want to leave your audience with a specific message, a video is clearly the best way to do it.
According to a financial publication out of the U.K., companies using video say that the top benefits to video include: positions company as innovative, increased levels of satisfaction, faster service, better customer intimacy and reduced work. (Source)
“Video has demonstrably helped us communicate with – and grow – our audience,” says Tammy Cash, Executive Vice President, Head of Marketing, Horizons ETFs. “It’s engaging, dynamic, it’s what our audience is responding to, and it helps us speak to them more often.”
Video isn’t “too good to be true” – it does take work to get a video right. Video, however, is what your audience wants. So, give them what they want.
“Video has demonstrably helped us communicate with – and grow – our audience. It’s engaging, dynamic, it’s what our audience is responding to, and it helps us speak to them more often.” Tammy Cash, Executive Vice President, Head of Marketing, Horizons ETFs Inc.
Manage regulatory issues
Financial firms are limited in how much they can spend on their relationships with advisors. These rules exist for good reason. But keeping advisors and institutional investors well informed about your firm’s solutions helps ensure they are making the right recommendations to their clients. Simply put, video helps them do their job more effectively.
“Video helps firms get their message in front of advisors and institutional investors,” says Reale. “Your portfolio managers can use the same video to talk to all advisors, no matter where they’re located – saving their time and your company’s money.” You can even add graphics and statistics to make your video a more educational experience. You can also choose to make your video a Q&A and address the audience directly. The choices are endless.
Some things to look for during your search for a video partner
Not all videos are created equally – nor are all video partners. There’s a steep learning curve, which is why you might want to consider working with a partner that specializes in financial services video. A partner like Asset TV will help you create videos that stand out with cutting edge and compelling content. Here’s how they help:
- Strictly video. A partner that is focused purely on video will help ensure you’re benefiting from industry best practices.
- Vetted audience. Ideally, your video partner will have access to a controlled, opt-in audience of retail advisors and institutional investors. This ensures your message is getting in front of the right people – meaning your clients and prospects.
- National distribution. Flying around the country to meet with advisors and institutional investors is a massive drain on resources and, more importantly, results in some important markets being underserved. A video partner with national distribution helps solve this problem, as your message can be heard from any place with an internet connection. Today, that’s everywhere.
The financial services industry is evolving quickly – and your company’s marketing and branding efforts as well as your content strategy needs to keep pace. “In an environment of increased regulation, fee compression and product proliferation,” says Reale, “getting your message in front of the right people and then keeping their attention takes engaging content that you create frequently. Asset TV can help.”
Some things to look for in a video partner
Financial services providers looking to leverage the best video has to offer should expect the following from their video production and distribution partners – and Asset TV delivers:
- An understanding of how to get (and keep) viewers’ attention
- The ability to create cutting-edge, compelling content that meets Continuing Professional Development and Continuing Education standards
- Access to an expansive audience from the investment community
- Metrics to show that this audience is actually spending time on their platform viewing your video content
Video’s appeal is already massive and continues to grow. Whether you’re new to video or an experienced pro, working with a video partner can help you improve the quality of your content, manage your marketing costs and capture your audience’s attention.
Think video is right for you? Want to find out more? Contact Catherine by email at catherine.reale@asset.tv or call 416.523.7694.
Keeping track of the regulations affecting hedge fund managers and institutional investors
Just in case you didn’t already know the investment industry is managing never-before-seen levels of regulations, we wanted to provide you with a list of the regulations affecting investment managers in the hedge fund, private equity and alternative management spaces.
You need to be aware of these regulations, as they will directly impact your chances of attracting capital from institutional investors.
Dodd-Frank Wall Street Reform and Consumer Protection Act
Another law that was passed in light of the financial crisis, this Act’s objective is to protect consumers from potentially harmful financial products, regulate financial markets and limit the likelihood of another financial meltdown. Please note: the Senate recently passed legislation that could eliminate some aspects of Dodd-Frank.
Foreign Account Tax Compliance Act
The Foreign Account Tax Compliance Act (“FATCA”) is looking to eliminate tax evasion by requiring U.S. taxpayers to report financial assets held outside of the U.S.
Alternative Investment Fund Managers Directive (“AIFMD”)
A European Union law enacted following the financial crisis that regulates alternative investment managers, including private equity and hedge funds, and mandating they be authorized with regulators and provide various disclosures to remain in business.
Basel III Proposal (banks)
Formed by the Basel Committee on Banking Supervision, this framework was developed to strengthen the global banking industry by requiring banks to maintain adequate capital levels, liquidity and risk management systems to decrease systemic risk.
Financial Transaction Tax
The Financial Transaction Tax (“FTT”) would seek to tax EU financial transactions, including the sales of stocks, bonds and derivatives, to recoup taxpayer dollars used to support banks during the financial crisis and eliminate speculative transactions that do not support a positive economic well-being.
Institutions for Occupational Retirement Provision II (pension funds)
The Institutions for Occupational Retirement Provision (“IORP”) seeks to protect pension members and establish rules to maintain the quality and sustainability of workplace pensions through disclosure requirements, governance, cross border transfers, etc.
Markets in Financial Instruments Directive II
The Markets in Financial Instruments Directive’s (“MiFID”) objective is to offer investor protection and further the transparency of all EU financial markets by making them more structured as well as mandating easier to observe trading costs, access lower cost data and improved transaction execution.
Find out more about MiFID here: Are you MiFID by regulatory changes?
Undertakings for Collective Investment in Transferable Securities V and VI
Undertakings for Collective Investment in Transferable Securities (“UCITS”) V looks to improve investor protection by enhancing depository duties, fund manager remuneration rules and sanctions for breaches, while giving regulators an adequate level of power to impose those rules. UCITS VI will tackle the use of derivatives, portfolio management techniques, long-term investments and money market funds.
Solvency II (insurance companies)
Solvency II was designed to protect insurance customers throughout the EU by instituting a regulatory framework around financial requirements, reporting and disclosure, as well as governance and supervision for the insurance industry.
To learn more about how we can help you successfully launch and manage your fund in this complex regulatory environment, contact us at 1.844.243.1830 or info@ext-marketing.com.
The marketing of Marketing: 5 tips to gain credibility and respect
If you’re of a particular vintage (or just enjoy old-time comedy), you know about Rodney Dangerfield. His act revolved around getting no respect, which is sometimes the case when it comes to marketing within the financial services sector.
While there are always people who understand the marketing function, some of your colleagues may be a little fuzzy about what the marketing function does, while others may question the effectiveness of a company’s marketing efforts.
Build the perceptions you want. Among the many things marketing professionals do well, one of the most important is our ability to champion a certain point of view and influence others to do likewise. Here are five ways you can increase your marketing department’s profile and earn the respect your team deserves:
1. Hit the road with wholesalers or get on calls with your inside sales team
When possible, you should also try to attend portfolio manager presentations or roadshow events. Visibility can lead to credibility, especially if you take the insights that you’ve gathered and apply them to your marketing efforts. The better you understand the needs and challenges of other departments (and the themes/messaging being used), the more effective your marketing materials will be.
2. Consider writing an internal blog that explains key marketing concepts, preferably using real-life company examples
Also, if there’s an opportunity at an event like a town hall meeting to showcase the essential role of marketing, go for it! This will help position your department as subject matter experts when it comes to marketing (and its value to your firm).
3. Make sure your team is knowledgeable about investing and your company’s products
It makes your team more credible if they “speak the language.” Team members could enroll in related industry courses to augment their industry knowledge.
4. If you’re part of the leadership team, have a strong presence at the cross-functional executive table
Be sure you are brought in on product launches and other initiatives as early as possible, be clear on how marketing is crucial to your company’s success, as well as standing firm regarding your share of the budget and resources for important initiatives.
5. Convey the benefits of marketing to other business lines
For instance, good marketing helps your sales team tell focused, compelling stories. It can also help your product team better articulate the strengths of the products they support. Similarly, your marketing team can help portfolio managers build more engaging presentations that effectively highlight their unique investment discipline. Use metrics wherever applicable to support your case.
The bottom line is that you want other departments to recognize and appreciate the value of marketing.
Make your marketing voice heard loud and clear at your company. For more ideas, contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
Three ideas for writing better speeches
Speech writing involves a highly refined set of skills – and marketing professionals who have these skills are a hot commodity in the financial services industry.
Here are three tips you can quickly implement when writing your next speech.
1. Simplify everything
There are a few ways you can simplify your speeches. First, you can simplify the topic. People who can simplify a complicated topic are the true superstars in the world of marketing and communications.
Second, you can simplify your language. Use strong verbs, removing unnecessary adjectives and avoiding jargon are three easy wins for speech writers. Third, you can simplify your structure. Too many asides will distract your audience, so stick to the topic at hand.
Simplify the topic, your language and your structure.
2. Write like you talk
The spoken word is a different kind of animal than the written word.
Whereas in the written word, you can convey a certain level of formality by avoiding contractions and using sophisticated words, the spoken word should almost always be delivered with a more casual tone of voice.
The spoken word should almost always be delivered with a more casual tone of voice.
In speeches, contractions like “we’re” are better than “we are.” And words like “commence” should always be replaced with simpler words. In this case a word like “begin” would be appropriate.
3. Finish with a bang
It’s important to wrap up your speech by reminding your audience what you’ve told them. For bonus points, some sort of flash of creativity (like a clever quote) at its conclusion will undoubtedly make your speech more memorable in the minds of your audience.
Do you want more speech writing tips? Check out these four tips to help strengthen your next speech.
Looking for more ideas about writing better speeches? Contact us at 416.925.1700, 866.243.1830 or info@ext-marketing.com.
Read more:
https://ext-marketing.com/commentaries-articles/writing-for-investors-avoid-industry-jargon/
Are you MiFID by regulatory changes?
European and North American investment dealers and asset managers have even more regulatory obligations today.
How come? Markets in Financial Instruments Directive II (“MiFID II”), the largest set of financial reforms to hit the European Union (“EU”) in over a decade, came into force on January 3, 2018. Regulators want MiFID II to accomplish three goals1:
- To govern all aspects of the financial services industry across the 31 EU member states, using a single set of rules
- To ensure financial services firms work in the best interests of their clients
- To greatly expand transparency around investor costs and trading execution
MiFID II’s seismic impact
From 1.4 million paragraphs of legislation, we’ve distilled things down to a few of the most important reforms you should take note of2:
Unbundling of research fees
Broker/dealers must charge separate fees for trading commissions and research. Traditionally both had been bundled under one cost, referred to as “soft dollars”.
Greater real-time pre- and post-trade transparency
Exchanges and firms must release real-time order information, including best bids and offers, trade price, time and volume. The new rules also apply to other markets, like foreign exchange and commodities.
Expanded Over-the-Counter derivatives trading on electronic exchanges
Over the Counter derivatives trading is being pushed from phones to electronic exchanges, where transaction data can be audited for proof of best execution.
Increased measures to protect clients’ best interests
More product information is now required to meet client suitability criteria. Also in place are broader procedures to avoid conflicts of interest.
Aftershocks – MiFID II’s impact on North America
Who is most affected by MiFID II in North America? Global investment dealers and asset managers with global mandates. Here are three areas where we believe there’ll be an impact3:
- Global investment dealers headquartered in North America with European offices may adapt, for the sake of operational efficiency, a company-wide, unbundled research fee model even though soft dollar payments are the norm in North America
- North American asset managers trading European securities will have to decide if the cost of research will be passed onto clients or absorbed into their bottom lines
- North American fixed income dealers who trade in European debt or have European clients will have to spend more on regulatory technology (“regtech”) to comply with the real-time trading rules
Will MiFID II be beneficial in the long run? We think so.
Any regulations that increase market transparency and investor protection are always a good thing in our books, especially if it eliminates the opaque practice of soft dollars. But we believe there will be a transition period as firms grapple with the new rules – and new costs.
To stay on top of regulatory change and regtech, contact us today at 416.925.1700, 1.844.243.1830 or info@ext-marketing.com.
Sources:
3 https://www.investmentexecutive.com/-/mifid-ii-represents-a-challenge-for-canadian-dealers
Read more:
Managing different perspectives from the sales team
An interesting aspect of corporate life is how diverse talents across departments come together for the company’s greater good. Everybody contributes different experiences, skill sets and ideas regarding the best way for the company to thrive.
As a marketer, you collaborate with many areas of the company. Perhaps most intriguing is the symbiotic relationship with sales.
Sales needs marketing to provide the market insights, strategic direction and targeted materials to sell effectively. Marketing needs sales to provide feedback on how marketing resources are working in the field, and what gaps in support materials should be filled.
That’s where things can get complicated.
Challenges with alignment
The typical sales function in financial services is segmented by external and internal. The external team, which is out dealing with financial advisors, is made up of wholesalers and their immediate support staff.
The internal team is usually made up of inside sales reps and coordinators, plus those in practice management, business development and certain leadership roles who tend to be based at head office (although they also maintain an external presence).
The challenge is that the external and internal teams hold their own views on marketing requirements. The external team believes they can better gauge needs because they’re regularly meeting with advisors. The internal team, notably senior leadership, believes they have a better overall perspective because they’re not deep in the weeds.
The challenge is that the external and internal teams hold their own views on marketing requirements.
With different views come different direction. For instance, internal sales leadership may want a brochure created on a particular product, while the external team says advisors want one-pagers. Marketing is left trying to reconcile competing requests.
So, while the internal team may be pushing to create a brochure, the external team is cranking out one-pagers to meet their own needs. Misalignment can also occur within teams (e.g., not all wholesalers share the same views or have the same needs).
Helping to gain alignment
This is just one example of many that you’ve likely experienced at some point. In such situations, marketing leadership can help.
The marketing function runs smoother when all partners feel engaged and valued, which ultimately benefits the entire company.
Maybe they can have key sales members jump on a call with marketing to come up with an aligned approach that reasonably satisfies all parties. Or, sales leadership can be engaged to bring their teams together and align their marketing needs.
If possible, marketing should not proceed on initiatives until alignment is achieved, as it could waste time and effort – and cause friction within sales – to choose one group’s wishes over the other’s.
While marketers can voice their opinion on the best course of action and support it with rationale and related metrics or research, it’s wise not to “take sides” or pit one team against another.
After all, the marketing function runs smoother when all partners feel engaged and valued, which ultimately benefits the entire company.
Need more tips on how best to collaborate with the sales team? Contact us at 416.925.1700, 844.243.1830 or info@ext-marketing.com.
Read more:
The marketing of Marketing: 5 tips to gain credibility and respect
Delivering the right information at the right time
As a content marketer, you sometimes need to cast a wide net. When writing copy for your company’s website, for example, you’ll be working under the assumption that almost anyone could be a potential customer. And you’ll write your web copy based on that assumption.
At the same time, you realize that not every product is right for every customer, especially when you’re selling financial products. With some campaigns, you know you’ll need to target the right customer with the right information at the right time. And that’s where contextual marketing comes in.
Contextual marketing 2.0
In a nutshell, contextual marketing is a form of personalized marketing that allows you to target specific (current or potential) customers based on how they behave and what they search for online. You know what this looks like. You Google “best boots for Canadian winters” and search through the results. A few minutes later, you log onto Facebook and the ads all seem to be for winter boots.
With the ever-increasing move toward mobile, contextual marketing can go one step further to target the right customer with right information at the right time AND in the right place. You search for winter boots on your mobile, and you start receiving ads for the best deals on boots at stores within a couple of kilometres of where you are at that moment. You might even get a coupon to put toward your purchase, texted right to your phone.
With the ever-increasing move toward mobile, contextual marketing can go one step further to target the right customer with right information at the right time AND in the right place.
Finish Line
Targeted ads are a good example of contextual marketing, but they may not fit with what many content marketers do. So, what does this type of marketing look like within the context of a broader content marketing campaign?
Let’s look at the example of sports retailer Finish Line. The company created a direct-email campaign to announce a big sale at its stores. The announcement included a countdown clock that told customers how much longer the sale would last based on when they opened the email. Every time a customer opened the email, the countdown clock would update itself, making customers aware of the time-sensitive nature of the sale and creating a sense of urgency.
Finish Line also used its customers’ location data and stock information from each store to enhance the sale announcement. In addition to a countdown clock, customers could see a map to the nearest Finish Line location and up-to-date inventory of everything available at that particular store.
The company even took into account what would happen if the email was opened after the sale ended by providing an alternate message of great deals still available at their stores.
Contextual marketing for finance
Some financial services firms are already using contextual marketing with great success. One large retail bank, for example, tracks when a customer uses his or her credit card to make a purchase. The bank then sends the customer information on how to save money on similar purchases next time.
One large retail bank, for example, tracks when a customer uses his or her credit card to make a purchase. The bank then sends the customer information on how to save money on similar purchases next time.
By using location data, the bank could also choose to guide customers to the best deals on complementary products. For example, if the customer just bought a new printer, they could be guided toward the best deals on paper or ink refills. The tie-in here is that the bank is giving customers information that will help them successfully manage their credit card debt.
A note of caution: Contextual marketing could feel invasive to some customers. There are plenty of people who use the word “creepy” to describe those Facebook ads that seem to know exactly where they’ve been, when and with whom.
The examples we’ve given here, with Finish Line and the large retail bank, weren’t overly invasive and were well received by customers. But if you plan to use what could be seen as very private personal data to create tailored content, consider allowing customers to opt-in to your marketing program first. And avoid using sensitive information that has become public but that a customer may not want you to have, such as news of a recent divorce.
Yes, it can be a challenge to create tailored information that doesn’t cross a line, but for those who get it right, the payoff is often significant.
To learn more about contextual marketing and tailored content, contact us today at info@ext-marketing.com, or 416.925.1700 or 844.243.1830.
5 best practices for better online videos
More than ever before, Canadians are consuming their information and news through online video. It’s no wonder financial services firms are capitalizing on this trend and boosting their online video production capabilities.
Here are five tips to help ensure that you’re capturing attention and driving interest in your services and solutions with online videos.
1. Great sound is essential
Sometimes the most important aspect of a video is the audio.
We can’t overstate how essential audio is to video. You may be talking about the most interesting subject in the world but if your audience can’t hear you clearly, they’ll go somewhere else. So invest in the right audio gear and recording equipment for the best results.
2. Have the right words
You don’t want to “wing it” when it comes to conveying your message. Be prepared with a strong script and compelling content for your video. If you can’t get it right, bring in a professional to polish the wording.
Once your plan’s in place, fill in the blanks with the right speaker. Remember, though, a speaker who is at a loss for words and starts using fillers like “umm” could hurt your company’s image. Try to find a presenter who is passionate, authentic, speaks clearly and intelligently, and can relate to your audience.
3. Keep it short and sweet
We are often asked “What’s the best length for a video?” Sometimes people are surprised by our answer. We think one to two minutes is ideal. That’s right, just one to two minutes.
This time frame works because it doesn’t ask much from your viewer and, if written well, is more than enough time to convey one to three key points.
Note: longer videos do serve a purpose too, but they should be targeted to those who are highly engaged in a topic.
4. Hold off on the hard sell
The most engaging videos are not sales pitches. Instead, they solve problems.
If you focus too much on your company’s history and successes, you run the risk of boring your audience. You don’t want them asking “What’s the point of this video?”
The best approach is to use your corporate videos to outline solutions to the challenges your clients and prospects may be facing. An educational approach can also build credibility and is a great way to showcase your company’s expertise.
5. Close like a pro
Just like brochures and newsletters – and every other type of marketing material – corporate videos should end with a clear call to action.
Remember: if they have made it to the end of the video, you’re not imposing on your audience. The viewer probably wants more. So help them out by inviting them to contact you or offering a link for something to download.
Do you need help creating a video that will engage your clients? We can make it happen. Contact us at 416.925.1700 or info@ext-marketing.com.
Provide an experience clients won’t soon forget
As content marketers working in the financial services industry, we need to stay on top of the many marketing changes happening in our industry, and in others. One of the big changes taking place outside financial services is the rise of experiential marketing. Let’s explore experiential marketing: what it is, what one company has done very well as well as taking a look at what a financial services firm could do.
What is experiential marketing?
Sometimes it’s called engagement marketing or participation marketing, and there’s a good reason for that. Experiential marketing is a very hands-on approach to marketing. It takes place right in front of the consumer – on a street corner, at an event or anywhere consumers might be. But it’s not the same as giving away samples in front of a train station. Experiential marketing is interactive and provides a real experience between the consumer and the brand.
To get a better idea of what this means, let’s look at an example from the retail industry.
The Molson Canadian global beer fridge
There’s a good chance you’ve seen these commercials. A crowd of Canadians gather in a public space, drawn in by the sight of a Molson Canadian beer fridge. They’re looking confused and wondering what this beer fridge is doing in this particular space. After all, it’s a spot they’ve likely walked by many times before – and there’s never been a beer fridge there before.
As members of the crowd chat with each other, they slowly realize that the fridge is waiting for people to say “I am Canadian” in different languages. Working as a group, the crowd finds many people who speak different languages, and each steps forward to say “I am Canadian” in their own way. After the 10th language is spoken, the beer fridge open, and it’s free beer for everyone! (Adults only, of course.)
Not surprisingly, the crowd cheers and looks genuinely excited. Although we weren’t there personally, we’d be willing to bet that nobody in that crowd will ever forget that experience. And that, right there, is the definition of experiential marketing.
And for the rest of us witnessing the magic through commercials only? We didn’t have the same hands-on experience, but this is still a memorable campaign. We didn’t get free beer, but we certainly get the message about living in a wonderfully multi-cultural society.
The lesson for financial services
As a financial services marketer, the information you provide to customers is important. But for it to have a real impact, it also has to be memorable. Set aside the brochures and product information sheets for a moment and think about how you can create a real experience for your customers – an experience they’re not likely to forget any time soon.
One idea could be to go to an event where you know investors will be and set up a gaming station. Invite investors to play a game where they can choose different financial paths and see how their choices affect their future. For example, a player who hasn’t started saving for retirement can choose an amount to start saving now or to put off saving for 10 years so they can focus on eliminating their debt. They could choose to spend their tax refund on a vacation or on an extra mortgage payment. They could choose, for example, to prioritize retirement savings over saving for a child’s education.
With each path chosen, the player should be able to see the impact of their choices and what might happen if they made a different choice. The reward for playing could be something that ties into the game, like a complimentary session with a financial planner.
Keep in mind that many people like to keep their financial lives private. You may want to skip the crowd aspect of the Molson Canadian beer fridge campaign and create an experience that engages customers one-on-one.
Want to do something different for your next marketing campaign? Contact us today at info@ext-marketing.com, or 416.925.1700 or 844.243.1830.
Three more ideas for writing better speeches
Last week we shared four tips to help strengthen your next speech. Since we still believe that speech writing involves a highly refined set of skills – and that communications professionals who have these skills are a hot commodity in the financial services industry – we wanted to provide you with three more tips you can quickly implement when writing your next speech.
1. Simplify everything
There are a few ways you can simplify your speeches. First, you can simplify the topic. People who can simplify a complicated topic are the true superstars in the world of marketing and communications.
Second, you can simplify your language. Capitalizing on strong verbs, removing unnecessary adjectives and avoiding jargon are three easy wins for speech writers. Third, you can simplify your structure. Too many asides will distract your audience, so stick to the topic at hand.
Simplify the topic, your language and your structure.
2. Write like you talk
The spoken word is a different kind of animal than the written word.
Whereas in the written word, you can convey a certain level of formality by avoiding contractions and using sophisticated words, the spoken word should almost always be delivered with a more casual tone of voice.
The spoken word should almost always be delivered with a more casual tone of voice.
In speeches, contractions like “we’re” are better than “we are.” And words like “commence” should always be replaced with simpler words, in this case a word like “begin” would be appropriate.
3. Finish with a bang
It’s important to wrap up your speech by reminding your audience what you’ve told them. For bonus points, some sort of flash of creativity (like a clever quote) at its conclusion will undoubtedly make your speech more memorable in the minds of your audience.
Looking for more ideas about writing better speeches? Contact us at 416.925.1700, 866.243.1830 or info@ext-marketing.com.
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3 reasons to create a reference guide for your next sales tool
Sales tools are a great way to get information about a new product or campaign into your sales people’s hands so they can begin using them with clients.
But don’t send your sales tool out without a little support. Even the best sales tool will lose its impact if busy sales people aren’t fully aware of the key messages.
Also, language used during a sales presentation can differ from person-to-person, and the tool may end up not being used as effectively as it should be. Enter the reference guide, which can take the form of Q&As, detailed diagrams with callout boxes, or even basic microsites.
A reference guide:
1. Helps control the message
A reference guide speaks in clear voice from management, sales, product marketing, etc. about the tool’s most important messages.
Furthermore, the “internal use only” nature of reference guides provides a forum for direct and clear instruction regarding a product’s features and benefits.
The “internal use only” nature of reference guides provides a forum for direct and clear instruction regarding a product’s features and benefits.
2. Serves as a reminder on “how to”
The reference guide should go through the set-up of the sales tool and explain how to navigate it properly. For example: What needs to be highlighted? What is the goal? The reference guide should contain details that the sales team needs to know when they start using it.
3. Reduces training time for employees
Although getting everyone together and discussing a new sales tool is effective, having a reference tool can cut down on training time, meetings and emails. All the details required about the tool and how to use it should be included in the guide.
All the details required about the tool and how to use it should be included in the guide.
A reference guide can also build confidence in new employees, as they don’t have to memorize everything and will have a resource that can act as a refresher as time goes on.
For more information about creating effective reference guides, contact us today at 416.925.1700, 1.844.243.1830 or info@ext-marketing.com.
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Audit your marketing materials to align with your sales team
Working in a marketing department sometimes feels like you’re working in a vacuum.
You get direction to produce a brochure, you create an engaging piece, it goes to print … and you never hear about it again. Everyone who has worked in marketing has been there.
But there’s a good chance that brochure you produced is actually getting used. In fact, some of the pieces you may have forgotten about may be big successes with your sales team. And sales may be wondering why they were never updated.
Here are two things you can do to help:
1. Refresh for your current sales campaigns
It’s easy to get behind the newest, latest and greatest brochures, microsites and email templates. But it is even more helpful – for you and your sales team – to know all of your products’ support materials.
So help out your sales team by conducting an audit of the materials that support the products that are currently bringing in the most dollars – or that are a key focus for your sales team.
2. Survey the archives
We’ve heard this a number of times: a relationship manager is on a call or a wholesaler is in a meeting when an advisor brings up what seems to be an obscure brochure that was a big hit.
Given the rapid pace of change, some great core pieces are often lost in the shuffle and then simply forgotten. Find out where those pieces are and get them onto your project list.
Sales people often live in a focused world that revolves around their clients and core products or initiatives. Your sales team will absolutely benefit from knowing what materials still exist and in what form they can be delivered (i.e., print, web, email, PowerPoint, etc.).
For more ideas on how to engage your sales teams and conducting a thorough materials audit, contact us at 416.925.1700, 1.844.243.1830 or info@ext-marketing.com.
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Advisor communications series: Five best practices for videos
Given the amount of time people spend watching online videos, it’s no wonder advisors want to evolve their marketing endeavours to capture the attention of their clients and prospects.
Here are a few tips to ensure your online videos are more professional and engaging.
Be prepared
Write a script. If you can’t get it right, bring someone in to polish it for you.
You don’t want to wing it when it comes to conveying your message. If you’re lost for words and start using fillers like “umm,” it could hurt your – and your company’s – image.
Great video depends on great sound
We can’t overstate how essential audio is to video. You may be talking about the most interesting subject in the world, but if your audience can’t hear you clearly, they’ll go somewhere else.
This goes for lighting too. If you’re hidden in the shadows, your viewers may not want to strain to see you.
Keep your video short and sweet
People often ask us “What’s the best length for a video?” Sometimes people are surprised by our answer. A minute is good. A one-minute video works because it doesn’t ask too much from your viewer. If written well, it’s more than enough time to convey one to three key points.
Note: there is a place for longer videos if the content you’re sharing truly is great and people are highly engaged in your topic.
Hold off on the hard sell …
The best videos are not sales pitches. They solve problems instead.
If you focus solely on your company’s history and successes, you’ll bore your audience. You don’t want them asking “What’s the point of this video?”
The best approach is to use your corporate videos to help solve your clients’ and prospects’ challenges.
… and close like a pro
Corporate videos, just like brochures, emails and every other type of marketing material, should end with a call to action.
Remember that if they have made it to the end of the video, you’re not bothering your audience. The viewer probably wants more. So help them out and tell them what they should do next.
If you want help with your next video, contact us at 416.925.1700 or info@ext-marketing.com.
Advisor communications series: Discussing fees and your value
It’s not an overstatement to say that Client Relationship Model – Phase 2 (CRM2) is changing the way clients view the services their advisors provide.
Advisors who understand the changes and are able to articulate their value are the ones who will turn the evolving regulatory landscape into a business opportunity.
Get ready to talk fees
For many years, the fees your clients pay for mutual funds and other types of investments were shown in terms of percentages.
With clients seeing figures like 2.0% or 2.5%, it’s unlikely that fees have been a concern for many advisors.
This may change as a result of CRM2, which will require all management fees and sales charges to be listed on statements in both percentage and dollar terms.
Where a 2.5% charge hasn’t historically been very hard for individuals to swallow, $1,250 (2.5% of $50,000, for example) may prompt a different reaction. But the amount is exactly the same – it’s just reported in a different way now.
Initiate the conversation
It’s important you articulate that fact to your clients. You should also plan to be the one who initiates the fees discussion … as opposed to waiting for your clients to receive their statements and ask you about their fees. By that time, they may already have spent some time being concerned about the dollar amount showing on their statement.
Get your message clear
Start preparing some documents/speaking points about what these changes mean (few clients understand MERs), and have a value statement prepared that tells your clients everything you do for them to merit the fees they pay.
Think it through
Your value statement needs to be well thought out and you need to be able to clearly and concisely articulate what you bring to the table, including your education, process, continuous monitoring, annual reviews and network of professionals.
Investors who receive advice often do better than those who don’t, and expressing this is not a challenge but rather an opportunity.
Please contact us at 416.925.1700 or info@ext-marketing.com for more ways to communicate your value.
Building trust
The healthiest relationships are built on trust, and business relationships are no exception. Building trust with existing and potential clients can go a long way toward strengthening your brand and earning new business. We’ve put together a few tips to get you started.
Lose the elevator pitch
“In 30 seconds or less, tell me who you are, what you do and – most importantly – what you can do for me. Go!” We’ve all been to a networking event that started out this way. But with today’s increased focus on content and decreased focus on direct sales, we’re somewhat surprised the elevator pitch is still around.
Almost nothing sounds less sincere and, to us, less appealing. Instead, focus on building connections and having real conversations. Figure out what you have in common with your target clients and talk about those things, on your blog and social media or at community events.
Figure out what you have in common with your target clients and talk about those things, on your blog and social media or at community events.
Also encourage open and honest feedback, even if it’s not private, and act on that feedback. Communication goes both ways.
Provide consistent quality
Either directly or indirectly, you’ve made your clients a promise about what you can deliver. Now make good on it. Your clients need to know what to expect from you each and every time they work with you. That’s what builds brand loyalty and referrals.
Think about a restaurant you’ve been to dozens of times. You like the food, the service is great and the atmosphere is perfect for you. Until that one time you had to wait 30 minutes for your food and the clearly overworked server was self-righteous instead of apologetic.
It was just one time out of many, but it’s the one experience you’ll talk about for weeks. And you’ll tell your story to anyone who will listen.
Be responsive when mistakes happen
Try as you might to be at the top of your game every single day, you will occasionally deliver a less-than-stellar experience. We hate to admit it, but it happens to all of us.
When it happens to you, respond immediately. Be open and honest. Talk to the client, explain what happened and apologize. Let them know what you’re doing to make sure it doesn’t happen again. And listen. It’s not easy hearing negative feedback, but would you rather your client tells you all about it or 100 of their closest friends?
Become part of your community
Your clients want to know that you care about them and their community. As a company, sponsor and attend community events or support a local charity.
Your clients want to know that you care about them and their community.
Support something you truly believe in and can get behind for the long term. And do it because you want other people to become involved, too.
If your employees do their own charity work, recognize them for it, and ask what you can do to help.
Interested in other ways to strengthen your brand? Follow us on Twitter or LinkedIn.
How to write an engaging call to action
Among the pieces that make up great marketing copy, your call to action may be the most important component of all.
And there’s a good reason why: your call to action may be your last chance to nudge your reader to take the next step. Here are three things to keep in mind when writing your next call to action.
This may be your last chance to instruct your reader on what he or she should do next.
1. Use action verbs
A call to action should avoid soft instructions, and instead incorporate action-oriented verbs. So avoid a call to action like this: “If you are interested in finding out more about …”.
Instead, try these three prompts when you’re writing your next call to action:
“Get your …”
“Call us today at …”
“Discover the benefits of …”
These are direct verbs that get to the point, which is what a call to action is all about.
2. Be clear, not clever
Being clear and direct is more important than being clever or creative. It’s better to have your reader think “This is a great offer” than “That is a great call to action.”
You can ensure clarity by always making your reader a priority.
3. Make the next step easy
One way to make the next step easy is to provide a few ways for your reader to contact you, such as a phone number and email address. Also think about including links to your Twitter, LinkedIn and Facebook pages.
You can’t be sure when or how your call to action will be read, so be prepared for anything.
You can’t be sure when or how your call to action will be read, so be prepared for anything.
Easy also means quick. If your call to action requires work, like filling out a contact form, your reader may lose interest.
Nevertheless, if your call to action does require a little work, be sure to sweeten the deal by offering something for free.