Differentiation in Digital: How Asset Managers Can Stand Out Beyond Performance Metrics
Traditionally asset and fund manager marketing and sales messaging focuses strictly on financial performance. But there is a problem with that.
If everyone is talking about the same thing then why should your audience pay attention to you vs. all of your competition.
The Boston University Questrom School of Business recently hosted a conference where industry leaders gathered to discuss the evolving landscape of marketing and digital experience in the asset management space.
At the event, Craig Martin, Executive Managing Director of Wealth Intelligence at JD Power and Jim Cove Chief Marketing Officer of Natixis examined the importance of differentiation, trust, and firm credibility in the rapidly evolving digital environment.
A critical question for the market – how can asset managers effectively differentiate themselves through digital experiences?
Going Beyond Just Performance
Having a point of differentiation is critical to future success in the asset management space and digital is a vital channel to communicate and reinforce what is unique about the asset manager.
- While solid investment returns are vital, they are also expected. Beyond that, Advisors are seeking a partner who helps them improve their business.
- Among financial advisors who rated their level of trust with an Asset Management partner as one of the highest among their partners, 80% said they were ‘very likely’ to invest with the firm in the future vs. just 15% for those who rated their level of trust average or below.
- Another key trait financial advisors are seeking in a partner is being ‘easy to do business with’. 79% of advisors who give asset management partners top marks on this brand perception said they were ‘very likely’ to invest with the firm in the future vs. just 19% for those who rated their level of trust average or below.
Effective digital strategies that balance all three elements –The Digital Experience Hierarchy.
The Digital Experience Hierarchy
The Digital Experience Hierarchy is a strategic framework measures the effectiveness of investors’ engagement with firms’ digital assets aligning it with investors’ satisfaction, retention, and overall business growth. This hierarchy consists of three levels: Foundational, Findable, and Valuable Elements.
Analysis of 2,500 site evaluations by Financial Advisors who used the asset manager site in the last month, JD Power has discovered that nearly half of experiences do not achieve the “foundational” aspects.
- Foundational: provides content and tools that increase product knowledge and has useful investment insights and education
- Findable: Easy to navigate and ability to find important content
- Valuable: Aesthetically modern while reflecting the brand, is well organized, fast and responsive.
Trust: The Digital Frontier
A poor digital strategy can quickly erode trust, impacting perceptions both now and in the future. Trust isn’t built overnight. Consistent, transparent communication through digital channels can significantly enhance trust which is a critical factor in the decisions Advisors make when it comes to where to invest and who they partner with in the future.
A great digital experience is about understanding the ‘why’ of the end user and ensuring your digital experiences efficiently and effectively enable the end-user to achieve their goals for the site. No matter how good your content, if it’s difficult to find and engage with then its value is minimized or totally lost.
About the Author: Craig Martin, the Executive Managing Director of the Wealth and Lending Practice at JD Power, leads data analysis and thought leadership for Auto Finance, Consumer Lending, and Wealth Management industries, driving positive change and superior business outcomes. His insights, featured in numerous publications, address customer experience, satisfaction, and industry challenges.