Mutual funds and ETFs market their products to financial advisors by a number of means: targeted communication, educational seminars, personalized marketing materials and relationship-building strategies. These efforts are designed to inform advisors about the benefits and suitability of investment products for their clients, facilitating informed investment decisions. In this sales and marketing effort, it is critical to know who the relevant advisors are, where they are, what their role is within their firm is, their team assignment and their track record in selling investment products like the ones being promoted.
There are roughly 30 broker-dealer firms, accounting for an enormous percentage of mutual fund and ETF sales, that organize their advisors in team buying units. For a sales and marketing effort to be successful, understanding the roles, team assignments and sales history of the individual financial advisors within these large firms is crucial in fundraising for a mutual fund or ETF. Having this knowledge in hand gives a sales and marketing team a number of competitive advantages:
Targeted Approach: Knowing the specific roles allows mutual funds to tailor their communication and investment products to the needs of each advisor, enhancing the effectiveness of the fundraising campaign. Identifying top-performing advisors and understanding their sales patterns enables targeted marketing efforts.
Relationship Building: Understanding team dynamics helps in developing stronger, more personalized relationships with advisors. Building relationships with influential advisors and those leading in sales of your product and similar products leads to more significant fundraising success.
Efficient Resource Allocation: Knowledge of roles and hierarchy within the firm ensures that a fund’s resources are directed towards the most influential decision-makers and teams. Focusing on advisors with high transaction volumes ensures efficient use of resources.
Customized Solutions: Recognizing the varying needs and specialties of different advisors allows for the offering of customized solutions, highlighting the attractiveness of a fund’s offerings.
Improved Communication: Clear understanding of roles facilitates better communication and ensures that the right messages are conveyed to the appropriate individuals, aiding in clearer and more effective presentations and discussions.
Maximized Opportunities: Identifying the roles and influence of various advisors helps in identifying and capitalizing on key opportunities within the broker-dealer firm. Profile and assignment information of the highest volume advisors guides marketing toward advisors of similar profile and assignment.
Product Alignment: Aligning fund offerings with the transaction trends of the most productive advisors ensures relevancy and appeal.
A deep visibility into the structure and roles within financial advisor firms significantly enhances the strategic approach of mutual funds in their fundraising efforts, leading to more effective and successful outcomes. Understanding the roles and team assignments of individual financial advisors within a broker-dealer firm as well as the activity and sales history of those advisors streamlines fundraising for investment products in a way that no other information can.