Why word of mouth is one of the most effective forms of marketing for financial advisers

By Ryan Smith on October 1, 2018

Financial advisers shouldn't forget about the basics when hunting for new leads.

In a world where never-ending new forms of online marketing are constantly being touted as the only way to do things, it’s easy to forget about the tried-and-tested traditional methods. When you get a little creative and mix the two, things can get really interesting – and that’s why “word of mouth” is still one of the most effective ways for you to promote your business and supplement your marketing strategy.

Take the lead

When a potential lead is carrying out a financial planner search, they will most likely do some online research, but they are also fairly certain to ask around friends, family and colleagues. Financial advisers provide a professional service, and it’s one that can be difficult for a new customer to quantify via a search engine or online directory.

That’s where you can take the lead in finding new leads. By simply applying age-old business practices related to word-of-mouth marketing to new opportunities, you can make the best of both worlds.

Referral marketing

Referral marketing usually brings to mind B2B networking, where a mutually beneficial setup can bring new business in both directions. However, traditional word of mouth is also a form of referral because satisfied customers are literally doing your marketing for you.

Free marketing is, of course, the best type of all, as any shop or supermarket knows when they get you walking around with their logo splashed over carrier bags. That’s not really something that a professional offering financial planning help can do, but there are plenty of ways that you can utilise a similar approach.

Trust

A key factor in building up new leads for anyone in the finance sector is portraying a trustworthy image, and what better way to do that than have a referral come to a new lead from someone they themselves already trust? How exactly can you make the most of word of mouth in a contemporary marketing setting?

Here are some basic ideas to start with:

  • Ask clients for feedback after you have worked together for a while
  • Facilitate a conversation with site visitors by integrating comment sections
  • Make sure that social media accounts have shareable and engaging content

Be social

The way that social networks can be included in your marketing is virtually a definition of free word-of-mouth advertising. Of course, you can pay for ads and other types of boosted content on Facebook – but using your posts creatively can achieve the same kind of results.

Twitter, Instagram and Facebook are also essentially based on the idea of giving people something that they want to share with others. At its core, this is a modern form of word of mouth but one that has no real limitations in terms of potential reach.

Good work

Of course, the only way for word of mouth marketing to work in your favour is to provide services that your clients want to shout about. Everybody likes the idea of looking knowledgeable themselves, and so knowing when to use a financial adviser and being happy with your choice is something that most people will share with others.

Even the best financial advisers can have a tough time standing out from the crowd when it comes to attracting new leads, so anything that can give you an advantage is well worth looking at. Using word of mouth is one of the oldest tricks in the book, and that’s because it works.

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