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Tech Unfamiliarity, Client Defection and Lead Generation Top List of Financial Advisor Concerns in 2020: AdvisorStream Research

Financial advisors who are not fully embracing digital marketing in 2020 are at risk of losing clients and unable to take advantage of the surge in investors looking for advice during the ongoing COVID-19 pandemic and massive market volatility, according to new findings of the “AdvisorStream: State of Advisor Communications” research. The research explores the challenges of nearly 1,000 financial advisors in the U.S. and Canada.

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Over half of advisors who are still struggling with a lack of digital marketing expertise, or who don’t know how to maximize marketing tools, say their primary concern is client retention. Conversely, advisors using effective digital marketing saw an incredible 40% growth in their leads compared to the pre-pandemic period (see infographic).

Among all advisors, nearly 50% worry about client defection this year.

On lead generation, nearly 75% of advisors who are unfamiliar with digital technology cite standing out against the competition and securing client referrals as their main obstacles, underscoring the importance of digital marketing literacy.

“If there was ever a moment for advisors to deploy digital solutions, now is that moment,” says Kevin Mulhern, CEO and co-founder of AdvisorStream, the global leader in automated marketing and communications for financial advisors. “Our comprehensive research shows that during a crisis, you can grow as a financial services company if you have and use digital tools properly. The opportunity among advisors to retain and grow clients at this point in critical times is at an all-time high, and digital solutions figure in as the number one area for advisors to focus on in 2020.”

More than one-third of respondents who are very concerned about losing clients concede they find it more difficult to stay in regular contact.

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The survey asked respondents to express their level of concern about:

  • Client retention
  • Lead generation
  • Technology knowledge
  • Communication content
  • Staying in contact with clients
  • Goal setting

Additionally, the AdvisorStream research is complemented with data from its marketing platform.

Key overall findings of the “State of Advisor Communications” research:

  • 48% of respondents are concerned about losing clients in 2020
  • Securing new referral business (52%) and standing out among the competition (49%) during pandemic times are the top challenges currently facing digitally challenged financial advisors
  • Almost 75% of advisors expressed frustration around generating new leads and standing out among other advisors
  • Nearly 60% of respondents who say they are struggling to find credible content for their communications are concerned most about client defection
  • 40% of advisors who are focused on retaining clients during COVID-19 cite their main obstacle as keeping in regular contact with clients

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