The financial services industry is unfortunately addicted to a product-focused orientation such that sales are
minimized. It may seem at first that the firm that does a hard push on their product through brokers and agents may be wisely marketing their financial product or service. But in fact, the product focus leaves the financial services firm at the following disadvantage:
–their product is commoditized with every other similar financial product (e.g there’s nothing different about one mutual fund vs the other)
–as a result of commoditization, they are constantly fighting for shelf space vs their competitors
–they are continuously pushing on the weakest link in their distribution–the broker’s inability to market himself. So the typical financial services marketing activities conducted by product firms look like:
1. taking brokers to lunch and shmoozing them because they know their product is the same as others. Thus, they compete on a beauty queen basis, hoping to look better than their competitors
2. coming up with all types of sales tools–scripts,storyboards and illustration software (the more colors, the
better)
3. offering trips and incentives when regulations allow, again attempting to look better than their competitors
But what if the financial product firms, say the mutual fund company or the insurance company, decided that
focusing on the sale of their product was not the best way to maximize sales. What if they actually employed financial services MARKETING and did not confuse marketing with sales? Their tactics would then look different.
The first questions would be “what is most important to the brokers who distribute our product?” And the quickly realized answer is that brokers certainly do not need another me-too product. What the broker needs is more clients.
So smart financial services marketing is helping the brokers, the distribution channel, to fill their pipeline.
Notice, for example, that Intel sells more chips not by attempting to sell you, the end user, their chips, but by
having you request their product from their distributors (is it Intel inside?). The Zen paradox of so many
goals is that the best results (in this case, maximizing financial product sales) are often achieved when you
do not focus on the end result you desire. In this case, focusing on the distributors, the activities that help
brokers would be:
1. teaching them how to get more referrals, use direct mail more effectively, write better copy for ads, give more effective seminars. Teaching brokers how to get clients must be devoid of the product pitch. As hard as it may be for the insurance company NOT to hand out slides to the seminar “Why Annuities are the Best Source for Retirement Income,” the insurance company will fair better if it teaches the broker how to get better attendance at his seminar.
2. this product-less education on how to be more successful can be delivered via webinars, maybe a weekly
e-newsletter “referral tips” or in-person classes by given their wholesalers.
Financial services marketing can result in a lot more product sales when it is actually about marketing rather than products or sales pitches. The brokers and agents will bring more of their business to those firms which most effectively help them with financial services marketing and gaining new clients.
Tags: financial services marketing, marketing financial products, marketing financial services
The most important and successful method from my experience is by far #1. teaching them how to get more referrals… Some people have a tough time asking for referrals, but once you get over that uncomfortable feeling get ready to make some money. Think about it this way; if you have provided a current client with excellent service or a great product you’ll be shocked at how willing most are to pass out a few business cards for you. Great post and good luck.
Great advice, I specifically liked using an e-newsletter for leads. I’m new to this website, is the article formatting typically like this?
My family is almost all in the finance industry. It’s ridiculous how someone can be influenced to make a purchase because the wholesaler brought in lunch for the whole bank. Yeah numbers do matter, but if someone selling you mutual funds makes you feel a certain way, little else matters. That’s the sad truth which I am very privy to behind the scenes. This is how it works folks.
Many good points in this blog post and i can also recommend that u push your e-newsletter really hard.
“focusing on the sale of their product was not the best way to maximize sales” i agree with this one.service after sale is the most important step for sustainable development to enhance the sale.One good sale just the temporary success, stable good sale just the destination。
“What if they actually employed
financial services MARKETING and did not confuse marketing with sales?”
Well, but isn’t marketing a funnel for sales? I mean, marketings sole purpose is to make a sale through conversions, just like sales sole purpose is to make… a sale. In fact, customer services sole purpose is to make a sale, as well as management, etc..
Good to see that you mentioned “teaching them how to get more referrals”.
In my experience, the 80/20 rule applies to brokers when it comes to marketing, same as everything else.
For financial services businesses to invest time/resources into the top 20% of performers in TRAINING instead of taking brokers to lunch would give a FAR better return.
Good performers, don’t want to waste time at lunch!
marketing is definitely the key to getting more referrals
I couldn´t agree more – not least with the phrase “write better copy for ads”. That´s certainly been a overlooked problem in the financial services industry as long as I can remember – not least here in Denmark.
I could not agree more with this post. Direct mailing is one of the best marketing techniques in finance. So don’t be afraid to be direct§
Financial services marketing gives us really great results. We started to use it a year and our sales grow up
Financial services marketing give to us great results, we started to use this services one year ago, and are very happy about that
Making people feel good always get you more business. Regardless of how good your product is. Getting referrals is the key.
I agree, instead of worrying about closing the product sale they should be focusing their efforts on what the other person actually needs and is willing to pay for. Offering the same type of product as hundreds of different companies is not going to get you anywhere.
Great post! Financial Services Marketing is like any business, you need to put the customer first, offer them value and they will buy from you.
“What if they actually employed
financial services MARKETING and did not confuse marketing with sales?”
Well, but isn’t marketing a funnel for sales? I mean, marketings sole purpose is to make a sale through conversions, just like sales sole purpose is to make… a sale. In fact, customer services sole purpose is to make a sale, as well as management, etc..
I have to agree with this. Nice point on “teaching them how to get more referrals”
Good tips on financial services. We could use someone like you in Michigan
Financial services marketing can result in a lot more product sales when it is actually about marketing rather than products or sales pitches..nice thought. thank you for this suggestion.
Maximizing financial product sales is hard aim. only digital instruments can help
Well said. Brokers must be devoid of the product pitch. Also, the seminars are great always. I do believe that financial services marketing and sales pitch are two interlinked but totally unique domains. Each needs special care and attention. All we need is to study the real man within, and to explore all its social and psychological needs. Unless we do this, we cannot get productivity through high-sales results. Specifically speaking, marketing has always been misunderstood. It’s not sell something. In my point of view, it’s about building PR, both in terms of Page Ranking
and Public Relations.
I think offering trips and incentives when regulations allow seems to be a better option to me. When the brokers are taught how to get referrals they need to be properly instructed so as how to deal with different types of them. Nice post, added a lot to my little knowledge on the subject. Cheers
Isn’t that one of the great things about financial services marketing? They live a window of opportunity open for those willing to look at the benefit to the user and write copy that way. I’m curious though about how financial services marketing compares to pharmaceutical marketing, which I consider to be one of the most savvy, and unethical industries when it comes to marketing. Thoughts?
Thanks for the Nice Article on financial Services marketing
these are really good tips on financial services marketing. Thanks!
I have learnt a lot on financial services and sales pitches here.
@Rose I am agree with you, we shoul have someone like him everywhere in the word!! We need posts like this about financial marketing.
Great post
I agree with you that Financial Services Marketing is a more effective way to sell financial products to clients through an agent or broker. Would be good to know if the principles can be applied to any business even ones as obscure as training people
Financial services or any company it is simple to promote.Ask people what they want and then try to help them.
I agree, instead of worrying about closing the product sale they should be focusing their efforts on what the other person actually needs and is willing to pay
marketing is definitely the key to getting more referrals
With the FSA regulating certain aspects on hard selling, there are really less options available. Not that potential clients might be very receptive to cold calling and all alike. Qualified leads acquisition or client side initiated enquiries are objectives better left in the hands of a marketing department rather than a sales one. On the other hand, the final stage, is usually better dealt with by a sales person. Combining the two is probably the better way to go about it. Referrals? – a deal meant to succeed from the start
.
I’m going to say that after sales services is one of the more important aspects of retaining customers. Getting referrals and having the personal touch still goes a long way in making good business.
From experience I’ve found mail shots and direct mail to be not the most effective means of financial service marketing
regards
Stephen
I Am too From the finance industry.Thanks for the Article on financial Services marketing.i too have some financial services but i am amazed on that It’s ridiculous how someone can be influenced to make a purchase because the wholesaler brought in lunch for the whole bank.
The product-focused orientation you mentioned is my exact turn off. Hard pushes to me are “old style” and would seem to turn more people off than on to even the best products someone had to offer.
I’d say you hit the nail on the head but am surprised why other financial services firms haven’t made the connection between what is needed by the channel and what will help drive more business to your product. You’re right – it’s about remembering who your actual client is – in this case a financial services vendor for your product and not the end user. They’ll have different buying criteria from the end user as you’ve noted.
For me, more learning how to blend combination. Sales is actually not for everybody. One should learn how to tap the innate marketing skills of a person however you should be careful on this one. Not all are tailor fit for a sales post.
Aurora Mesner
Nice tips on financial services. Thanks for your guidance. Useful one.
Financial services marketing gives us really great results. We started to use it a year and our sales grow up
Prospecting is a key selling skill and a critical skill to develop if you want to increase your sales and achieve long-term success in sales. Yet, most sales people don’t invest enough time to this integral sales strategy. Part of the problem is that very few companies teach sales reps how to prospect.
Financial service marketing is surely one of the most important activities to drive sales. Very informative article. I’ll be sure to take your tips to heart. I always appreciate an experience perspective. Thanks for the great article.
I receive financial services marketing calls all the time and find it hard to determine which is the right one for me. Your article was a really useful read and helped me to understand a great deal more than I did this morning.
You are absolutely right. Folks will be more willing to sit through a presentation from a broker/firm if it really educates them on a certain topic and things to look out etc, more than pitch on any specific financial product. That is the best way to build trust.
There’s a fine line between the two and those with pure marketing skills have no problems making the sale. Those that make promises as part of a sales pitch, often find themselves misleading peopel, especially in the financial services industry. Not everyone understands the terminology thrown around!
Making people feel good always get you more business. Regardless of how good your product is. Getting referrals is the key.
Nice blog. The selling function is an important element of the overall marketing process. Many organizations establish a separate sales function, apart from other elements of the marketing process.
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