When outsourcing is not reaping returns, a strategic switch-up often entails making ineffective quick marketing wins. But what if such changes were effective?
This idea stems from a clear quantitative finding in AssetMark’s Impact of Outsourcing Study into 745 RIAs and independent broker-dealers across insurance channels: handing over a minimum of 20% of investment management to an outside manager saves over nine hours a week on average.
Even better: 92% report improved client retention from this practice.
Even better? The study identifies that, more than 58% of the time, advisors utilising 11 or more referral sources hit AssetMark’s top growth tier threshold.
Hedge fund marketing has had a long-held suspicion that operational efficiency and client acquisition are one-and-the-same problem. The data we have presented here challenges that notion.
The hours freed up by creating a repeatable referral process are necessary now to gain allocations (as well as making more ‘breathing room’ to craft great client services). Shaved time is always welcome, but a no-brainer when that added advisor focus results in actual asset increases.
So, what does that mean for fund marketers?
For marketers at asset managers, sub-advisors or Turnkey Asset Management Programs, this headline is a data point any advisor client should know:
“Only through a deliberate referral programme for outsourcing can efficiency be reflected in AuM growth”
Many will be bored with the woolly “save time” pitches. Instead, this presents a trainable behavioural change to improve productivity, rather than spending huge sums on ‘all style no substance’ tools that promise a lot, yet do a little.
Elsewhere, the report suggests that content or enablement solutions specifically centred around referral-source diversification will cut through sharper (and more quickly) than another forgettable round of “why outsource?” messaging. After all, advisors know “why”, just perhaps not “how”.
This could include marketing material around client advocacy, templates for making introductions, or cadences to engage centres of influence. These are ultimately more targeted outreach methods for advisor channels to be improved upon over the course of successive campaigns.
Source: AssetMark
AssetMark Study Finds Investment Management Outsourcing Is Increasingly Linked to Stronger Advisor Growth Outcomes
