Asset Management: Digital Marketing Trends and Opportunities

Asset & Wealth Management Firms

Asset Management: Digital Marketing Trends and Opportunities

Deepak Passi & Amit Patnaik

The asset and wealth management sector, which was traditionally characterized by personal relationships, face-to-face meetings, and paper-based processes, has undergone a sea change due to digital transformation. Rapid advancements in technology have substantially transformed the way asset management firms operate. The sector now relies on sophisticated technologies to manage portfolios, analyze data, and provide personalized investment advice. This shift has necessitated a corresponding change in marketing, and made digital marketing an essential component of asset and wealth management.

In this new scenario, digital marketing has become an indispensable tool that enables asset managers to enhance their services, build client relationships, and maintain a competitive edge in the market.

Why Digital Marketing Matters¹

Digital marketing offers unparalleled opportunities for growth, engagement, and brand visibility. Here are some compelling benefits because of which leading asset managers are rapidly adopting it:

Enhanced reach and engagement: Traditional marketing techniques, such as print advertisements and in-person events, offer limited opportunities and usually fail to engage the younger, tech-savvy demographic. On the contrary, digital marketing opens new ways for asset managers to reach a broader audience. Digital channels, such as social media and email marketing, supported by search engine optimization (SEO), enable asset managers to offer personalized content that grabs diverse audiences globally.

Data-driven decision making: Digital marketing creates innovative ways of data collection and analysis. With the help of digital tools, asset managers can collect insights on clients’ demands and preferences. This data-driven approach enables more informed decision-making, allowing firms to tailor their services and marketing strategies to meet the specific needs of their clients.

Cost-effectiveness: Digital marketing is undoubtedly more budget-friendly, compared to conventional marketing methods. Asset Managers can run online campaigns that meet their budget and measure performance in real-time. This flexibility allows asset managers to allocate their marketing budgets more efficiently, ensuring that they achieve the best possible return on investment (ROI).

Improved client relationships: Building and maintaining strong client relationships is crucial in the asset management sector. Digital marketing tools, such as customer relationship management (CRM) systems and automated email campaigns, help marketing teams efficiently store, organize, and retrieve digital files, while maintaining version control and rights management, ensuring that each piece of content is the true source of truth.

Digital Marketing Trends for Asset Management

As the financial landscape evolves, asset managers must stay ahead by embracing the latest digital marketing trends. Here are some key trends to watch out for:

Content marketing: Content marketing has become a powerful digital marketing tool for asset managers, enabling them to stand out in their industry. Firms now provide a diverse range of valuable content, such as articles, blogs, whitepapers, videos, and webinars, covering topics like financial planning, investment strategies, and market trends. According to Brunswick’s annual survey of institutional investors, 75% of institutional investors have made investment decisions based on online content and social media platforms.²

Social media engagement: Social media enables two-way communication, allowing asset managers to directly connect with their audience, resolve their queries, and address their concerns in real time. Almost 70% of financial advisors around the world find new clients through social media.³Apart from connecting with clients, asset managers can use major social media channels such as Facebook, LinkedIn, and Twitter to share market trends, the latest news, and thought leadership content with their target segment.

Search engine optimization: SEO plays a crucial role in enhancing the online visibility of asset management firms. By optimizing websites with SEO, they can attract a higher volume of organic traffic and effectively reach out to potential customers who are actively seeking investment advice and services. Research shows that 76% of individuals who perform a local search on their smartphones end up visiting a physical location within 24 hours, and 28% of searches lead to a purchase.⁴ Additionally, higher rankings on search engines is often correlated with trustworthiness and authority.

Email Marketing: Emails can be used for a range of purposes, such as providing investment updates, educational content, event invitations, holiday greetings, customized financial solutions, and regulatory updates.⁵ Additionally, potential and existing clients can subscribe to email newsletters to learn more about an asset manager’s offerings. Nearly 73% of companies rate email marketing as either ‘excellent’ or ‘good,’ in terms of ROI.⁶

Video marketing: Video content is increasingly gaining popularity, as it provides a dynamic way to communicate complex information. Asset managers can use videos to explain investment strategies, share market insights, and highlight their firm’s unique value proposition. According to Statista’s Q2 2023 report, online videos have an audience reach of about 92.3% among internet users globally.⁷ Platforms like YouTube and Vimeo, as well as embedded videos on websites and social media, can significantly enhance audience engagement and understanding.

Mobile optimization and apps: As smartphones have become an integral part of people’s lives, companies are now prioritizing the optimization of their websites, apps, and digital content for seamless viewing and interaction on smartphones and tablets. Responsive website design and mobile-friendly content enable clients to effortlessly connect with a company across all devices. Furthermore, mobile optimization also enhances search engine rankings. In addition to website optimization, financial institutions are also investing in app development. With nearly 97% of millennials using mobile banking, companies that offer a mobile banking experience have already been witnessing increased customer engagement.⁸

Artificial intelligence: AI plays a vital role in generating social media content and email copies, filtering leads, personalizing content, and automating specific aspects of marketing campaigns. It can efficiently handle the analysis of vast amounts of financial data, as well as assist in predictive analysis, enabling informed business decision-making. Additionally, AI supports user behavior analysis, pattern recognition, deep learning, and content-based filtering, all of which are crucial components of systems that offer improved solutions to investors. The value of AI is particularly evident in chatbots, as they reduce reliance on customer service calls by enabling clients and leads to engage with bots to obtain necessary information. An IBM report reveals that AI-powered chatbots can resolve up to 80% of routine customer inquiries.⁹

Virtual networking: Asset and wealth management platforms have evolved significantly over the years to cater to the increasing demand for personalized services. It has given rise to hybrid models that combine digital tools with online advice from wealth managers. Today, firms provide convenient options such as complimentary virtual meetings with qualified and experienced financial planners, enabling clients to discuss their strategies, ask questions, and receive guidance and support.¹⁰ Another equally important mode of virtual networking involves hosting online events. Despite a post-pandemic resurgence of in-person gatherings, approximately 93% of event marketers plan to invest in virtual events in the near future.¹¹

Unlocking the Potential of Digital Marketing

In today’s rapidly evolving digital landscape, leveraging the opportunities presented by digital marketing can significantly enhance brand visibility, customer engagement, and overall business growth. Here are some key opportunities that asset managers can consider:

Personalization at scale: With digital innovations, asset managers can deliver a more personalized experience to their clients. With the aid of automation tools and advanced analytics, they can categorize customers based on their preferences, demographics, and behavior to deliver personalized content and recommendations.¹²

Enhanced client education: Digital marketing has opened up numerous ways in which asset managers can inform clients and prospects about investment strategies, market trends, and financial planning. Webinars, online courses, and educational content can help asset managers position themselves as trusted advisors that empower clients to make informed decisions as well as enhance their overall experience.¹³

Greater transparency: Digital innovation allows asset managers to be more transparent with their clients and provide real-time updates, performance reports, and insights on investment decisions. This transparency builds trust and confidence, which is indispensable for long-term customer relationships.

Lead generation and conversion: Digital marketing is an indispensable tool for lead generation and conversion. Through targeted advertising, content marketing, and social media engagement, asset managers can attract competent leads and encourage them through the sales funnel. Moreover, they can use marketing automation tools to streamline the process, ensuring that prospects receive the right information at the right time, eventually driving conversions.

Competitive advantage: Firms that effectively use digital channels to reach and engage clients, provide personalized experiences, and showcase their expertise are more likely to stand out in a competitive market. In today’s fast-paced market, digital marketing has emerged as a powerful tool and staying updated with trends can ensure that asset managers remain competitive and relevant.

How Evalueserve Can Help

Evalueserve offers comprehensive support on all fund marketing matters, including presales, client servicing, and digital marketing support. Our digital marketing and web publishing experts specialize in managing clients’ content through content management platforms and compliance workflow tools.

Click here to get in touch with us and discover how Evalueserve can help you enhance your processes, making them better, faster, and more efficient.