Brokers Should Use Inbound Marketing
Cold calling is so yesterday
Recently there has been a rise in the number of smaller independent brokerages appearing to trade in products from equities to FX. Having visited some of the floors of these businesses they reminded me of a call centre rather than a prestige brokerage and I’ve worked at some top names so I have the experience of a major trading floor.
What also struck me was the constant murmur of conversation by young well-heeled men and women wearing headsets dialling numbers from lists… and it was those lists that led to two simple questions. Where do you get your list data and should brokers use inbound marketing?
Where do you get your list data?
Strangely or not, like most businesses the lists are purchased from places like Experian or Data Broker, where brokerages can specify user data and then dial into consumers that are taking calls from a number of different businesses day in day out. All after the same thing, their money!
How many people reading this really like their home privacy invaded by any sales call, especially unsolicited ones. Cold calling not only feels outdated but archaic in terms of current social acceptability of invasive cold calling and the ongoing improvements in modern marketing activity.
When I sit here writing and think quite literally about this, how do you separate the activities in a regulated brokerage from an unregulated one, other than the fact one should honour the contracts it draws up and the other has no honour at all. But that’s something we can assess and understand because we know the industry, I’m not sure an elderly resident knows the difference and that’s why unregulated operations continue to rip off people using cold calling activities.
Surely it’s about time to distance your brokerage from any preconception an unsuspecting resident would have when your staff call them to talk financial products and use the latest digital tools to talk to them in the space that they are most receptive. Google!
Is Inbound Marketing the answer and should brokers use it?
My conversations with the owners of these establishments are all pretty similar, they accept that “social media” not “digital marketing” (note the difference in term) is the way forward, but that in itself shows a clearer lack of understanding of just how significant online marketing activity could be to the bottom line.
In an industry that can only survive if the cash is flowing then 100% YES, Inbound Marketing is the way forward. A number of financial services businesses are already reaping benefits from adopting an inbound marketing approach PTT Research increased leads 700%, Visible Equity gains 100% lead growth in 4 months, LenCred increased its lead base ten-fold and the list keeps on growing.
Inbound marketing works toward generating a lead base of potential product or service consumers that are only interested in what is being sold. If any business in the financial services industry could improve lead generation, reduce cost per acquisition and drive through higher profits on a reduced amount of wasted effort then surely most financial directors would lean on the marketing and sales heads to climb on board.
It doesn’t take a salesman to understand the real underlying benefits that a comprehensive inbound marketing campaign can add to the activity of delivering the salesforce warm qualified leads, they just have to see the opportunities it presents. For me, if I had a sales team that spent the majority of its time calling people that had signed up to be called because they believed in or required my product or service, then I’d become an instant advocate. Salespeople only care about the bottom line profits and their bonuses, they always think about closing however the opportunity is delivered.
So in closing, I advocate inbound marketing in sales based activities in the financial services sector as a support to other activity that takes place, but make no mistake, this type of activity will be the most productive for your business.
image courtesy of the wolf of wall street