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How To Harness Digital Marketing – The New Normal For Hedge Funds. Part 1

Published: 7 August, 2020

Over the two decades since founding ProFundCom, I’ve seen the hedge fund sector become increasingly – if gradually – reliant on digital marketing.

But Covid-19 has now turbocharged that process. Through the force of necessity, the investor journey is now almost all digital in some shape or form.

And that’s not going to change too much, even after the coronavirus crisis. The ubiquity of digital marketing is here to stay.

But if you’re in the hedge fund space, how do you take advantage of that?

This is the first in a series of posts examining the new normal of digital marketing –and what hedge funds must do to make the most of it.

And I’m going to start with the old marketing warhorse that is now the communication channel de jour:

Email

It seems that, in a world where we’ve all been thrust – whether we like it or not – into a digital communication landscape, people increasingly favour email as the best way to get information.

And this is based on research, rather than my own opinion. In May, a couple of months into lockdown, we worked with Greenwich Associates to analyse communication preferences for fund information. Our survey found that 92% of people wanted to receive data via email, above any other method.

These are the biggest figures I’ve seen for email since it was the only choice for digital communication. It seems that the sheer breadth of other options – Zoom calls, Teams, IMs, WhatsApp messages, texts etc – has sent people back to what they know best. Respondents pointed to ‘communication fatigue’ as the main reason for favouring email.

When we dug further, people cited other reasons – the ability to get more detailed content through email, being able to look at it when you want, and the ease of filing the information on your own system.

Of course, the importance of email doesn’t mean you should ignore other digital channels – web, social etc are still important.

But all these channels, and email especially, are only as good as the content you distribute.

Because when you send out quality content – that investors actually want to read – you have the ability to track interaction and discover who is looking at what.

Take email as an example. With each message you send out you can use a platform like ProFundCom to see who’s opened it, which attachments they opened, the links they clicked on, where they are in the world, the device they used etc etc.

This is a massive boost to your marketing – as you can quickly build a picture of what interests the prospects and investors in your system.

Of course, it helps if you know the type of content that resonates with investors. I’ll cover that topic in my next post.

 

 

 

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