When the market is up, clients are satisfied. They may not like their advisor’s communication style, but they are still mostly satisfied because their investments are doing well.
When the market is down, clients are unsettled. They could be feeling fear, financial stress and uncertainty, as well as being more open to speaking with another advisor.
Marketing during a market downturn is the best time to spend up in marketing. A prospect is more vulnerable and willing to make a change.
I understand that your revenue is most likely down during a downturn. It may be a more riskier business decision to invest in marketing at this time. But it is the best time to spend up.
Market downturns are also when your clients are more vulnerable to leaving.
In a downturn, make sure to educate your clients. If the market is down 30%, and their portfolio is only down 10%, then that’s a win and they need to understand that. Be positive and confident with your strategy when speaking to clients. Increase your communication and educational events. After you point out the “wins”, invite them to an event that you have and ask them to bring some friends who are nervous about the market.
It’s also a great time to educate clients about annuity products that can protect their assets as well as ask them if they have any outside assets they would like to protect.
Investing in marketing during a market downturn can also have long-term benefits for financial advisors. By establishing a strong brand and marketing presence, financial advisors can position themselves for growth when the market improves. This can help them attract new clients as well as retain existing ones, which can lead to increased revenue and profitability over the long term.
THE BOTTOM LINE:
Marketing during a financial downturn can have long-term benefits for advisors, as well as present opportunities to educate and sell insurance products to clients.