As high net worth investors begin to recoup some of the losses suffered in late 2008 and early 2009, trust in the financial services industry is starting to recover.

As high net worth investors begin to recoup some of the losses suffered in late 2008 and early 2009, trust in the financial services industry is starting to recover. Yet there’s no denying that the market declines, combined with high-profile scandals such as the Madoff and Stanford debacles, has left the wealth management industry with some of the worst image problems in our history.

What have we learned? Throughout all the turmoil, firms that fared the best were those that stuck to tried and true investment principles, while at the same time making a concerted effort to provide education and transparency to clients.

Moving forward, it’s clear that one of the best ways for a firm to maintain client faith and attract new clients is through marketing and communications programs.  To forge and maintain relationships, we’re starting to see firms using social media as a key form of interaction with customers. But social media is only one part of a fully integrated marketing function – one that accomplishes four things:

§         Building trust and recognition of technical capabilities

§         Strengthening client loyalty

§         Creating better odds of starting conversations with potential clients

§         Increasing affinity among employees

Large global firms have traditionally relied on advisors to carry the load for new business development. Firms have shown little appreciation or commitment to establishing company-wide integrated marketing programs; yet now, more than ever, this is what is needed.

For wealth management firms, integrated marketing is a single function where public relations, marketing communications, advertising, product marketing and corporate brand building are all working together in partnership with the website and sales team to drive new business.

An integrated approach can be instrumental in directly impacting change, demonstrating transparency, communicating new products and solutions and facilitating education and the sharing of intellectual capital.

Why Is This Necessary? 

For any institution to regain trust, it must demonstrate a unified message on every front.  In the financial services industry and all other industries, word of mouth is still the number-one driver of sales. A single disgruntled client or employee can do more damage than a single strong campaign, but will have significantly less impact if all of your marketing channels are working in tandem to drive your messaging home. 

For example, providing education both live and virtually through many channels demonstrates technical competence, provides clients with more than the periodic call with their advisors, and opens up topics of discussion that they can discuss with their advisors.  This also provides employees something to be proud of – seeing their brand aligned with a positive initiative.

In this environment, a firm must re-emphasize its commitment to personal relationships.  It’s more important than ever to provide advisors with fresh, new research, products and approaches to discuss with clients and potential clients – on the phone, in an email or through social networking channels. It’s also an opportunity for the advisor to add the all-important positive marketing touch points.

What Is Next?

As 2010 progresses, you will see more and more financial services firms adopting consumer product marketing processes and protocols.  In other words, a campaign will not be done within one silo, but across the entire firm, with high expectations for return on investment.  Until now, this approach has been elusive for the industry, amid the misplaced belief that it’s the advisor who should bring all opportunities to the table. 

A well-run integrated campaign will have the capacity – through brand-building, product marketing, public relations, advertising and marketing communications – to generate actual business from a thoughtful quote in a newspaper, a well-placed online ad, an electronic newsletter, or a call to an 800 number.

In summary, if your marketing department is operating on all cylinders, and has co-ordinated and integrated its efforts, you should be seeing a strong impact on the bottom line.

Marla Bace is chief marketing officer for Brinton Eaton, a wealth management firm in Madison, N.J.