In the aftermath of the pandemic, the significance of a firm’s brand has reached new heights and taken on new meanings. With the world experiencing an escalated state of crisis, trust in institutions has eroded, and the need for consumers to establish a connection with the companies they do business with has increased.
A study from ecommerce consultant Salsify found that 86% of consumers were willing to pay more for products or services offered by a brand they trust. And while brand trust isn’t a new concept, increased choice has made today’s consumers more skeptical, thoughtful and selective in their purchasing behaviors. I believe the same is true of financial services consumers, especially after the recent troubles encountered by some regional banks.
The Importance of a Brand Platform
People look at brands differently than in the past. A brand used to be a company’s logo, font and colors. Now, it has evolved into an all-encompassing platform, largely because consumers are more engaged online. Consumers are seeing brands everywhere and have become accustomed to getting to know a company based on its digital presence.
In wealth management, as in other industry sectors, a strong brand should personify the relationships established with both employees and customers, while also reflecting the firm’s overall philosophy and culture. Ultimately, an effective brand should tell the story of who the company is and what it stands for, in addition to being unique and authentic.
Today, a powerful brand must include elements like thematics, core values, and how the company connects and achieves its mission, as well as the company’s personality traits. The brand platform is equally as important as the logo and color scheme. When done right, a well-defined brand platform will establish a firm’s credibility by better communicating its message to customers and prospects, with the end goal of building trust to drive success.
Clients want brands to be authentic. When establishing or redefining your brand, consider the personality traits you want to reflect and don’t be afraid to weave them into your mission, values and digital assets; it’s not all business.
Brand authenticity is especially important to next-generation clients and prospects. Millennials and Gen Z consumers, in particular, expect that firms they do business with care about more than just their bottom lines. A well-crafted and executed brand platform allows you to show these clients who you are.
Not Just for Large Firms
A solid brand and brand platform are not exclusive to larger corporations. As you look at your own practice, even if you’re a sole proprietor, you should have a compelling brand platform. Your clients and prospects need to see themselves as a part of your brand. It should extend beyond simply having your name on the top of your letterhead. Your brand must be central to your business plan and growth strategy.
Building a brand platform doesn’t mean you have to change your firm’s name or logo. If your current brand name has built-in equity, there may not be a need for a change. However, you can always consider refreshing your brand platform. Look at your mission statement, value proposition and digital presence within your target market—think about how those things reflect you and your business values. If these elements are not well defined, then that’s a great place to start in building a brand platform.
You also do not need to spend enormous sums of money with outside consultants to improve your brand platform. With a little creativity and free online resources, you should be able to create an enhanced brand platform that better expresses your business’s voice and personality.
Simplified Brands Are the Future
The strength and quality of brands have been gaining in importance in the independent wealth management industry for the last few years. Complicated brand hierarchies that may have made sense in the past no longer serve the best interests of the company, its employees, advisors or their clients.
In the changing wealth management landscape, where consumers are more discerning and interested in knowing the brands and businesses they work with, a firm must be willing to evolve to grow.
Post-pandemic, there are broader benefits for independent advisors in having more well-resourced brands themselves and behind them as their partner. With clients asking more questions and placing more importance on the brands they do business with, advisors need to show they have a valuable brand and also highlight the strength of their supporting partners. Brands that are leaning into this are going to be more effective.
A Firm’s Experience Starts With Its Brand
Advisors, employees and end clients are looking for more from the firms with which they do business. The overall experience a firm creates is more important today than ever before, and the experience starts with the brand. A strong brand, backed by a thoughtful platform, is a critical necessity for firms of any size to compete and succeed in the independent wealth management space.
Jen Roche is executive vice president, marketing and communications at Advisor Group.