Why it's risky for UHNW/HNW Advisory firms NOT to have a digital/social strategy? Some of the topics addressed include: Why is digital/social media such a big deal, and why is it considered risky not to have a digital/social media strategy? Where and how should a busy charterholder leverage resources in an effective social/digital marketing plan? What are best practices for using LinkedIn, Twitter, Facebook, and blogs to create visibility among prospective clients and create community among clients?

1. Using Digital/Social Media
in Your Marketing Strategy
CFA Institute – Wealth Management 2013
March 21-22 -- Boston
1

2. A Day in the Life of April Rudin
2

3. About The Rudin Group
Challenging ―Business as Usual‖ Practices
• Integrated marketing, branding and communications
strategies for the financial services industry.
• Helping UHNW / HNW community create client
acquisition plans that take advantage of next generation
digital platforms and communications.
3

4. April Rudin
CONSULTANT TO THE STARS
OF THE FINANCIAL SERVICES INDUSTRY
•Financial Services Industry Marketing Consultant
•Ultra-High-Net Worth / High-Net Worth Sector Specialist
•Digital and Social Media Engagement and Client Acquisition
Expert
• Multi-Generational Communications and Media Relations
Strategist
• Frequent contributor to national media outlets including
The Huffington Post, BusinessWeek, Bloomberg, Reuters,
Fundfire, Family Wealth Report and AssetTV
•High-Net Worth Advisory Board Chair for The Hedge Fund
Association (HFA)
4

5. Our Agenda
Social Media Strategies
For CFAs:
• Why You Can’t Wait
• The Risks and Causes of Inaction
• Allocating Resources
• Best Practices in Social Media
• What’s Next?
5

6. Targeting & Messaging
Most Financial Services Marketing Campaigns Are
Targeted Specifically to ―Boomers‖
•80 million baby-boomers in 2004 worth an estimated $59 trillion
•Estimated $46 million by 2018 and continue to trend downward
•Gen-X (estimated 45 million) and Gen-Y (estimated 60 million) worth $10 trillion
in 2004 and their combined wealth is predicted to be at least $28 trillion in 2018
6

7. How Did CFA Find April
Rudin?
• Thanks to @LaurenFosterNYC
• @LenCosta3rd
•
• @TheRudinGroup
7

8. Get a “FaceLift”
Don’t be invisible to Next Gen prospects:
Change the style, method and tone you use to present yourself and your firm
online.
Baby boomers ask friends for referrals and then act on the advice. Gen-X/Gen-
Y will ask for the same types of referrals from friends, but do their own research
on the Internet as well!
8

9. Characteristics of the
Young and Wealthy
Value transparency, community and mobile
convenience
Trust friends more than their parents
Eager to rate their advisors and others
Don’t trust the ―suits‖
Ready to take advantage of
affinity investment opportunities
9

10. Findings on Gen
D
•75 MM people in the US belong to ―Generation D‖, a behaviorally defined group with higher income,
assets, and education who:
–Are deeply ―digital‖, integrating online & social tech into the fabric of their lives
–Are active investors
–Are striving to cultivate, maintain and pass along wealth
•Unsurprisingly, Gen D is somewhat distrustful of the financial community, banks, and advisors given
the state of the economy and, most importantly, their inability to understand how the crash happened
in the first place.
–Many have come to believe that Financial Advisors (FAs) are simply salespeople pushing the
products that make their employers the most money, as opposed to the products that would most help
their clients
Source: ―Accenture Wealth and Asset Management Services Market Research: Understanding the Generation D Investor and
Advisor (Jan. 2013)‖
10

11. More on Gen D
•Nevertheless, they realize that investing is the ―only game in town‖ –
there is no other means to create, maintain and pass along wealth
•Gen D consists of Boomers, Gen Xers and Millennials. This provides a
mechanism for projecting towards future need states of Gen D (Cohort
Analysis), as a the differences in age groups are clues to both how
cohorts are likely to change over time, and how population wants,
needs and goals are likely to change as younger cohorts become more
dominant
11

12. And They’re Ready to Take
Control
Baby-boomers(your clients) are
transferring over $40 trillion to
younger generations over next
several decades
Wealth is being transferred to
young people earlier than it
was to previous generations.
They are richer AND younger
12

13. A Sector in Denial
Recently, I polled an audience of wealth
managers and asked their opinion on
whether next-gen wealth will abandon their
parents’ advisors….
I can’t hear you…
Over 90% said ―No!‖
13

14. All Evidence to the Contrary
According to:
98% Of New
Wealth Inheritors
Change Advisors
14

15. Where’s the Failure?
15

16. Boomers Talking to Boomers
Baby Boomers (ages 55 +)
remain the largest group of
wealth holders.
Established baby boomer
wealth professionals are
typically the ones with the
biggest book of business
16

17. Boomers Have Different Values
• They value trust, loyalty and long-
standing relationships
• Represent 70 percent ($7 trillion) of
total U.S. household net-worth
• Watch more TV than any other
demographics
• Boomers value experience over
product, need to know functional
outcomes
17

18. The Same, But Different…
•Boomers lag in mobile 25% own
smart phones or tablets in 2011
•Expected to grow to 39.8% in 2015
• Boomers are apt to rely on personal referrals rather than
perform actual research (conversation, email, or
traditional print media)
• If friends ―like‖ it they will, not inclined to seek outside
opinions
• Boomers value experience over product, need to know
functional outcomes
18

19. Most Wealth Management
Iconography is Dated
Go where you want
19

20. So Are Its Platforms
20

21. So What’s the Hold Up?
Are you a Flintstone or a Jetson?
Capture the Attention of
―Generation D‖
21

22. Help Me To Understand?
• Amplification of targeted
messages/measurement and refine
• Brand Differentiation both firm/personal
• Enhanced Visibility/Name Recognition and
Value Props
• Targeted Client acquisition and leveraging
the ―Money In Motion‖
22

23. How Allocations of Marketing
Resources Have Changed
Source: www.therudingroup.com
23

24. Today’s Fads Are Tomorrow’s
Trash
• Keep pace with
innovation
• Focus on how technology
changes how people
communicate
• Technology bridges
generations emergence of
―Gen D‖
24

25. The Social Media Imperative
47% of UHNW 8% of UHNW
56% of HNW 8% of HNW
Regularly read blogs that
B log
pertain to financial topics
19 % UHNW 16% HNW
32% of UHNW
31% of HNW
Source: Copyright Spectrem Group 2013
UHNW = Net worth of between $5 million and $25 million
HNW = Net worth of between $1million and $5 million
25

26. How is Social Media Used?
Younger UHNW investors are
more inclined to use social
media as a communication tool
and read their advisors’ blogs
•More than 25% of those
under age 44 would follow
an advisor on Twitter.
•More than 40% would read
corporate blogs
•Over 30% rely more on
social media for information
than on traditional channels
Source: Spectrem Group 2013
26

27. Generational Use of
Social Networks
86% of 18-29 year-olds use social media
Over 70% of 30-49 year-olds use social
media
50% of 50-64 year-olds use social media
Source: Pew Research Center/American Life Project
27

28. What Platforms Are Musts?
Platform Unique Factors Strategies and Best Practices
LinkedIn Business networking and relationship building, Structuring your profile and joining groups
introductions
Facebook Small Business/Personal branding/Consumer brands B to C, Business pages
Twitter Opportunistic, newswire, short burst in real-time Aggregating and curating content to attract
YouTube Most Authentic In five years, all websites will be video
Teach and Learn
Look + Listen
Google+ Feasting on SEO and Adword content Struggling to be all things
Blogging Thought-Leadership + POV, Complex ideas Content + opinion;
Commenting and engaging with others
28

29. Primary Challenges to
Social Media Marketing
• Industry / Organizational Inertia
• Available Resources
• Compliance Culture
• Reputational Risks
29

30. Social Media Excuses are
Actually Motivations
―I don’t understand the benefits‖
―We don’t have the resources‖
―Our clients don’t use social media‖
―We don’t have established policies and procedures in place‖
―It exposes firm to undue reputational risk‖
30

31. The Risks of Inaction
Diminished or no brand visibility –
―Who were you again?‖
Outmoded approaches to client
acquisition
31

32. More Risks of Inaction
Inadequate distribution of promotional and thought
leadership materials:
Reduced market share –
possibly all the way down to none
Business attrition:
32

33. CFA ≠Business Development
• CFA- A professional designation given by the CFA Insitute that measures the integrity
of financial analysts. Candidates are required to pass three levels of exams covering
areas such as accounting, economics, ethics, money management and security
analysis. The CFA charter is one of the most respected designations in finance—the
gold standard!
33

34. Have I Made my Case?
Eat your Peas!
34

35. Has the Ship Sailed?
Yes. Sort of. Many firms should
pivot toward attracting new
clients rather than focus on
developing Next Gen
relationships with existing ones.
Now is the ideal time to revamp your overall marketing to
capture market share during a period of unprecedented
generational wealth transfer.
35

36. Strategic Client Acquisition
1. Look at your brand, its elements
and your own firm’s differentiators
2. Determine your own unique
differentiators = messaging
3. Target messages and activities by
client type or persona
4. Design a social media strategy
and detailed plan with
accountability and timing
5. Execute the plan and monitor its
progress. Make changes where
necessary.
36

37. Active Engagement
vs. Passive Profiles
• Integrate with offerings and focus on firm activities
• Share successes via amplified social media platforms
• Lather…rinse…repeat.
37

38. Creating a Referral Network For
UHNW / HNW Client Acquisition
Real Estate
Attorneys
Matrimonial
T&E Attorneys
Attorneys
CFA
Non-profits CPA Firms
38

39. Where it Can Go Wrong –
HNW Social Media Miscues
• Abandoned attempts at social media
• No plan in messaging
– not niche-oriented
• Inconsistent posting or blogging
• Too much original content and
not enough curated material
39

40. Q & A Discussion
40

41. Thank You!
April Rudin
april@therudingroup.com
twitter: @TheRudinGroup
41