Each year, over 625,000 new business open their doors, according to SBA estimates. From coffee shops to fintechs, it starts with a motivated entrepreneur and a big dream.
In 2018, venture capital-backed financial technology companies raised a record $39.57 billion from investors, up 120% from the previous year. The funding went to more than 1,700 blossoming fintech deals. Additionally, in our industry, we are continuing to see record-breaking merger-and-acquisition activities.
With all these changes and presumed enhancements, how are you evolving your retirement plan practice to increase new sales, scalability, and profitability? When you look inside your business, what old world technologies are holding you back?
New Sales
Creating new sales starts with building a pipeline. To create a pipeline, you need prospects. Interestingly, the new DOL’s Form 5500 Search feature is pretty good. It’s free. That’s a bonus. The information is searchable and the interface is user friendly.
Keep in mind that our industry has great search databases from Fiduciary Benchmarks, Judy Diamond, RiXtrema and many other fantastic resources. Set up a demo to see which searchable characteristics would benefit your business. For example, are you looking for search features such as location, demographics, participant headcount, account balance, ER match, or industry? Pick your niche.
Then howare you reaching those prospects?
Last year, there were over 54 billion robocalls.[1] That’s a 108% increase from 2018. With the advent of immediate auto-dialing, it’s a computer-based contest to reach a prospect. Who does this benefit? On average, it is reported that cold calling has a 2% success ratio whereas with a referral, the success ratio is 40%. We’re not saying that cold calling is dead; rather, we’re advocating for selective outreach.
Think about your prospect and based on their demographics the best way to connect with them. For example, Baby Boomers appreciate a phone call whereas Gen Xers prefer an email. Millennials respond to a text. It’s about understanding their communication preference and the best way to get their attention and, more importantly, a favorable response.
Scalability
When advisors talk about scalability, the definition is always slightly different. For this column, we’re going to describe pipeline growth scalability.
As your clients, prospects, and centers of influence learn to know who you are and what you do, how are you scaling your marketing efforts?
Read more commentary by Rebecca Hourihan here.
Are you creating a vibrant social media following? Are you pushing out weekly automated emails with hot topics and plan sponsor trends? Do you use digital retargeting to stay top of mind?
What integrated digital technology is your business using to track pipeline management? Most automated email marketing platforms such as Mailchimp, Constant Contact, and HubSpot are extremely user friendly. They make consistent client and prospect communication easy and provide lead tracking and reporting that makes follow up simple.
But the million-dollar question is, what are you sending to them?
While you might be tempted to send a vague email to schedule a meeting, you don’t know them yet. That is just as intrusive as an interruptive cold call: it lacks substance and does not build rapport.
On the other hand, an e-newsletter offers value. It shows your prospects and clients that you are dedicated to the retirement plan industry and are up-to-date on retirement plan trends, topics, and best practices.
Other ideas are fiduciary best practice guides, financial wellness infographics, and SECURE Act videos that educate contacts on their role and how you are on their side to help.
By implementing a scalable content marketing campaign that drips valuable knowledge on your contacts, you are strengthening your reputation as the expert go-to retirement plan advisor and nurturing a growing pipeline.
Profitability
When your business does something quicker, faster, and more efficient than the competitor, you win. That includes first-to-market stories. Better websites translate into better “refer-ability.” Smarter implementation includes automation. How are you leveraging newtechnologies to advance your business into the next million?
If your business has old world technology running through its veins, maybe it’s time for an upgrade? Just like you recommend your plan sponsor clients to RFP their service providers every three years or so, the same should be true in your business. Does your email provider, CRM, investment screening platform, RPF search analysis still provide the best of the best? If the answer is “I’m not sure,” invite them to an RFP. Sometimes you’ll reinforce your conviction that the choice was correct. Other times, you’ll find new firms that can provide new solutions. There is no wrong answer; it’s about kicking the tires.
Everyday new companies emerge with the mission of solving business needs. What needs does your business have and are there any new or unexplored solutions out there for you? Don’t settle for old technology because that’s how it’s always been done. Challenge the status quo to find the right solution for your business, because as your clients evolve, you need your business to evolve with them.
Thanks for reading and Happy Marketing!
Rebecca Hourihan, AIF, PPC, is the founder and CMO of 401(k) Marketing, which she founded to assist qualified experts operate a professional business with professional marketing materials and ongoing awareness campaigns.
