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Three Video Sweet-spots for Marketers of Financial Services
In recent years, the investment sector has experienced significant disruptions thanks to cutting-edge technology in AI and machine learning. Today, intelligent computers otherwise known as robo-advisors can carry out almost all wealth management functions better than any human wealth manager.
In an interview with Bloomberg, Man Group CEO Luke Ellis notes that if computing power and data generation keep growing at the current rate, then machine learning could be involved in 99 percent of investment management in the next 25 years. According to a recent study by Accenture, wealthy investors now prefer hybrid investment services to the traditional approaches.
What should this mean to you as a investment or wealth manager, marketing, sales or origination manager? With computer algorithms taking over the mathematical functions of investing, human roles are shifting from trying to beat the markets to client services. Investing firms probably need to invest more in client communication and servicing if they're to have a competitive advantage.
As David Miller, the founder of PeachCap Inc notes in an interview with Forbes, white glove financial services providers should now focus on developing their Emotional Intelligence (EQ) if they are to remain relevant in this age of algorithmic investing. It seems clear that EQ is of great importance in investor relations and there are few better ways to achieve it than through deliberate and predictably effective communication. The big question is how?
According to a study by Katherine Milkman and Johan Berger, both professors at the University of Pennsylvania, EQ is the engine behind online content going viral. Wealth managers in the investment sector in general, should seriously look to EQ to drive their content strategy. And while any form of content can may carry an element of emotional appeal, video marketing is by far the most effective for authenticity, trust-building and for sophisticated propositions.
Sweet-spot One - Storytelling
Video marketing is a useful strategy as the first stage of investor communication. But how can it be emotionally appealing, and FCA-compliant? Well in my book, and those of most marketers, the king emotion is trust. And that's a clear and truthful friend of the FCA. One simple approach is to tell an authentic and structured story. Storytelling has been around since the beginning of time and has become one of the most important pillars of the brand building.
In financial services, storytelling is a useful tool to convey unique value to both individual and institutional investors. And effective storytelling involves engaging investors in fresh, authentic narratives. A good starting place is your firm's unique positioning, its ethos, its characters and its specialisms - put that lot together and you've almost certainly created a fresh, authentic narrative that helps shape your stories around your brands. A very good example of the power of storytelling in video marketing is the ongoing explosion in blockchain startups financing through initial coin offerings.
A common factor among ICOs that have managed to raise millions of Euros quickly is that they often have a narrative video telling their story. This is a good model for other financial firms, who could learn from this strategy - essentially combining factual presentation with character and opportunity.
Sweet-spot Two - Evidence
When seeking funds, investors tend to gravitate towards those that can consistently prove superior past performance and provide future outlook through good communication. While performance evidence and future outlook through paper are popular with most firms, video is only starting to gain traction - surprisingly, it's still early days. Given the power of video marketing, I know that financial firms can build trust and EQ among investors - I've seen it. The power of storytelling is useful in portraying past performance and future intention, and it lies in a familiar format - the documentary video.
Sweet-spot Three - Reach
Possibly the biggest sweet-spot in the sales funnel is out-reach and it involves persistent social media marketing. Usually, financial firms and funds concentrate their marketing efforts in traditional areas - public relations, printed marketing materials, and a website. However, social media offers an efficient way to connect with clients, investors, intermediaries and partners. Short, professional, educative, and interesting videos can make a huge difference to the way your brand is perceived. The videos should be targeted and regularly shared on platforms such as Linkedin, YouTube, Vimeo, Google+, Twitter, and Facebook.
For the last five years, we've been providing video marketing to Private Equity firms in the UK.
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