Tuesday, March 14, 2023
Reengineering Asset Management for the Digital Age
As an asset manager, navigating a changing landscape is nothing new: competition is increasing, costs are rising, fees are shrinking, and margins are compressing. It grows increasingly difficult to raise new assets and even more challenging to retain them.
As an asset manager, navigating a changing landscape is nothing new: competition is increasing, costs are rising, fees are shrinking, and margins are compressing. It grows increasingly difficult to raise new assets and even more challenging to retain them.
At the center of these challenges is an outdated distribution model that worked ten years ago, but no longer. Back then, it was enough for internal wholesalers to execute 50 dials to have meaningful conversations with five to ten advisors and fill external wholesalers' weekly calendars with appointments. However, now it requires 100 dials just to engage with a single advisor.
What happened? The World Has Changed.
Simply put, the world changed, and asset management distribution has to change with it. Today’s investors and consumers are extremely knowledgeable about investments, thanks to the online world, and this has led to the need for asset managers to remarket themselves in a totally different way. There are now seven billion smartphones worldwide, and people collectively spend an average of seven hours a day engaged digitally, with half of that dedicated to social media.
Who Holds the Cards Now?
Digital empowerment has completely changed how advisors and investors choose to interact with companies. Investment and fund research starts anonymously, either with a visit to a website or an online search, and advisors are already 71% through the buying process before they engage in any sort of conversation with the asset manager’s team.
Think of It Like Buying a Car
Financial services sales can appear complex to comprehend. To understand the difference in how buyers make their decisions now, think of it like buying a car.
Car Buying Before
Back in the day, you would go from car dealership to dealership on a Saturday or Sunday to test drive different models, with the salesperson acting as a sort of tour guide as they drove. After weeks of test driving and having conversations with sales reps, you’d finally choose which car to invest in. You return to the car dealer, sit down with the salesperson, and then came the process of haggling over the final price.
Car Buying Now
Contrast this with the buying process today. Car buyers extensively research online, watch YouTube for test drives, and read reviews and comparisons. They initiate the process digitally or else head to the car dealer with a printout about the car they already want to buy. Suddenly, the power and control of the buying process is no longer with the product provider, but with the buyer.
The same dynamic applies to asset management, and it has profound implications for any distribution strategy.
Reengineering Asset Management
Asset managers need to adapt to this new model if they want to remain successful. It begins by embracing the right process called inbound sales and marketing: the roadmap for how to develop a successful business in a digital world. This involves creating unbiased thought leadership to educate prospects, nurturing relationships, and earning their trust through digital channels. It continues by incorporating the right technology for a truly effective digital wholesaling platform which includes a dynamic CRM, robust data, website engineering for lead generation and sales, marketing automation, and sales enablement. Finally, it's important to build the right team, which may no longer include just traditional sales and marketing roles, but experts in content creation, digital dialogue, qualified prospecting, and more.
Ultimately, asset managers must Rethink Distribution™ if they wish to succeed. This means adapting to the concept of Digital Distribution™ which has the potential to increase revenues, provide better client service, and ultimately, position their firms for the future.
Conclusion
The outdated product-centric sales model is broken. The good news is that you have a roadmap to get to a more effective, digital-first approach. A comprehensive Digital Distribution™ strategy helps you adapt to the new rules of engagement in asset or wealth management.
You can successfully engage investors and advisors online, leading to faster advisement and client onboarding. You can build a modern sales and marketing team focused on digital first. And you can develop a business operation that positions your firm for the future.
Similar Posts
Tuesday, March 14, 2023
Reengineering Asset Management for the Digital Age
As an asset manager, navigating a changing landscape is nothing new: competition is increasing, costs are rising, fees are shrinking, and margins are compressing. It grows increasingly difficult to raise new assets and even more challenging to retain them.
As an asset manager, navigating a changing landscape is nothing new: competition is increasing, costs are rising, fees are shrinking, and margins are compressing. It grows increasingly difficult to raise new assets and even more challenging to retain them.
At the center of these challenges is an outdated distribution model that worked ten years ago, but no longer. Back then, it was enough for internal wholesalers to execute 50 dials to have meaningful conversations with five to ten advisors and fill external wholesalers' weekly calendars with appointments. However, now it requires 100 dials just to engage with a single advisor.
What happened? The World Has Changed.
Simply put, the world changed, and asset management distribution has to change with it. Today’s investors and consumers are extremely knowledgeable about investments, thanks to the online world, and this has led to the need for asset managers to remarket themselves in a totally different way. There are now seven billion smartphones worldwide, and people collectively spend an average of seven hours a day engaged digitally, with half of that dedicated to social media.
Who Holds the Cards Now?
Digital empowerment has completely changed how advisors and investors choose to interact with companies. Investment and fund research starts anonymously, either with a visit to a website or an online search, and advisors are already 71% through the buying process before they engage in any sort of conversation with the asset manager’s team.
Think of It Like Buying a Car
Financial services sales can appear complex to comprehend. To understand the difference in how buyers make their decisions now, think of it like buying a car.
Car Buying Before
Back in the day, you would go from car dealership to dealership on a Saturday or Sunday to test drive different models, with the salesperson acting as a sort of tour guide as they drove. After weeks of test driving and having conversations with sales reps, you’d finally choose which car to invest in. You return to the car dealer, sit down with the salesperson, and then came the process of haggling over the final price.
Car Buying Now
Contrast this with the buying process today. Car buyers extensively research online, watch YouTube for test drives, and read reviews and comparisons. They initiate the process digitally or else head to the car dealer with a printout about the car they already want to buy. Suddenly, the power and control of the buying process is no longer with the product provider, but with the buyer.
The same dynamic applies to asset management, and it has profound implications for any distribution strategy.
Reengineering Asset Management
Asset managers need to adapt to this new model if they want to remain successful. It begins by embracing the right process called inbound sales and marketing: the roadmap for how to develop a successful business in a digital world. This involves creating unbiased thought leadership to educate prospects, nurturing relationships, and earning their trust through digital channels. It continues by incorporating the right technology for a truly effective digital wholesaling platform which includes a dynamic CRM, robust data, website engineering for lead generation and sales, marketing automation, and sales enablement. Finally, it's important to build the right team, which may no longer include just traditional sales and marketing roles, but experts in content creation, digital dialogue, qualified prospecting, and more.
Ultimately, asset managers must Rethink Distribution™ if they wish to succeed. This means adapting to the concept of Digital Distribution™ which has the potential to increase revenues, provide better client service, and ultimately, position their firms for the future.
Conclusion
The outdated product-centric sales model is broken. The good news is that you have a roadmap to get to a more effective, digital-first approach. A comprehensive Digital Distribution™ strategy helps you adapt to the new rules of engagement in asset or wealth management.
You can successfully engage investors and advisors online, leading to faster advisement and client onboarding. You can build a modern sales and marketing team focused on digital first. And you can develop a business operation that positions your firm for the future.
