Referrals Are Less Important for Nearing Retirement Audience Than Previous Generations
09 July 2024 - 2:05PM
In the next 5-10 years, referrals will matter far less to financial
advice prospects than effective digital marketing, according to new
research from Ficomm Partners. The 2024 Consumer Insights
Study—Digital Marketing in Wealth Management reveals that of the
1,100 financial advice buyers surveyed, only 29% of respondents
required a referral to choose an advisor.
While 60% of respondents over 60 say they’ll only hire an
advisor based on a referral, only 29% of those nearing retirement
report needing a referral to hire an advisor. There’s an even more
dramatic shift compared to the younger age groups: only 17% of
respondents under 44 say they require a referral. Instead of
relying on referrals, 45% of respondents nearing retirement and 57%
of respondents under 44 hired financial advisors based on digital
marketing.
This change in referral behavior among under 60 buyers indicates
that the effectiveness of referrals as a lone strategy for organic
growth will plummet.
“The survey results align with what we have heard anecdotally,”
said Meg Carpenter, CEO of Ficomm Partners. “As these cohorts age,
their habits won’t change. They’re used to researching and making
purchases digitally and tend to rely on social proof such as online
reviews and clearly defined digital brands.”
In addition, the survey indicated that no one digital channel
was superior to another, rather that a mix of digital channels was
required to generate enough touchpoints to move a prospect into the
funnel.
“The question isn’t ‘Is your firm engaging in digital
marketing?’” said Mary Kate Gulick, CMO at Ficomm Partners. “It’s
‘Do you have an integrated, multi-channel digital marketing
strategy?’ And if the answer is no, it will be challenging to meet
your organic growth goals in the coming years.”
The research also showed that 64% of the effective marketing
tactics were digital, and showed that not one tactic outshone
another. A minimum of 2 digital interactions were required before
the consumer took action—with the ideal number of interactions
being 5+.
The value of digital marketing will only continue to increase
for financial advisors. Referrals will remain an important lead
source but can no longer be the exclusive way that leads come into
the business. Advisors who want to remain competitive will need to
implement an integrated, multi-tactic digital marketing strategy.
See the findings of the 2024 Consumer Insights Study—Digital
Marketing in Wealth Management here.
About the Study1,107 consumers participated in the study.
The sample is representative of the general population and is
balanced across gender, age, and income.
About Ficomm Partners:Founded in 2012,
Ficomm Partners is an embedded growth partner for RIAs and
wealth management platforms. Ficomm drives meaningful business
results through an aligned marketing strategy and scalable advisor
marketing service, leveraging decades of industry expertise,
multiple disciplines, and our human approach to extend the
meaningful impact of financial advice. For more information about
Ficomm, please visit www.ficommpartners.com or
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Kelsey Woodbridge
Ficomm Partners
13105934220
kelsey.woodbridge@ficommpartners.com