Smarter thinking

The day-to-day responsibilities of running a busy firm leave many advisers with little time to contemplate marketing.

However, taking time to review a strategy and build new client bases is essential if you are to expand your business.

Marketing activity for advisers used to comprise cold-calling at best.

However, there is now a range of costeffective options available to help you source tomorrow's clients.

The first stop should be insurers.

It is in your interest and theirs to make sure you continue to grow your business, so many offer wide-ranging support.

And best of all, they are free.

"I would urge any adviser who is thinking of doing some sort of marketing to pick up the phone to insurers to get some free advice and support," says Jason King, managing director of Life Policies Direct.

"They might be surprised at what insurers are willing to do if only they ask." All the main providers in the protection market provide support.

For example, Norwich Union Health care (NUH) has a guide to marketing section on its intermediary website, www.

healthcarezone.co.uk.

This provides downloadable client presentations, product-specific letter templates for new or existing clients, tips on managing databases and useful statistics on medical risks to quote to clients when discussing protection and health insurance products.

"This section is specifically aimed at helping intermediaries grow their business," says Nick Homer, product marketing manager at NUH.

Others offer similar services.

Scott ish Equitable Protect, for example, provides an online literature library, which includes a tool kit for advisers.

This provides examples of letters to target new clients.

"Pre-approach letters are an effective way of raising awareness for the need for protection cover," says Rod McKie, marketing manager at Scottish Equitable Protect.

"Advisers are sometimes able to obtain mailing lists through organisations such as gyms and health clubs. They can then pick a topic such as critical illness and co-ordinate a mailing to highlight to their target audience the value of such cover." King says the general standard of support from insurers is high, but methods suggested can often be time-consuming.

"IFAs need to devote time and energy to them, which is difficult for smaller advisers who have a business to run and limited in-house resources," he says.

Target audience For those advisers who are members of a network, it can reduce this burden.

Peter le Beau, director of Le Beau Visage, says networks are becoming like service providers and small business advisers.

"The biggest problems many small IFAs face is keeping up-to-date in generating leads and using IT properly. This is the reason many join networks. A major network will put most of its efforts into training and IT services," he says.

Sesame, for example, has produced a CD-rom for members, which provides tips on marketing.

It also runs campaigns for advisers in association with insurers to help develop business in key markets.

Members receive materials such as posters, mailshots, adverts and leaflets, which are preapproved.

Making sure marketing material follows Financial Services Authority (FSA) regulations has to be a top priority.

Stuart Gitsham, director of marketing at Sesame, explains: "The Financial Services Authority has become more prescriptive in the terms and statements that must be used to describe features and risks. The new changes are a significant step up for advisers and explain why many have been attracted to networks that have the expertise to offer guidance and support." Another option is to use a marketing agency.

There are a number of companies with exper ience of marketing intermediary firms, so it can be worthwhile to tap into their expertise.

One such agency is Tonic Marketing & Consulting.

Its director, Aidan Dewhurst, says: "While intermediaries have traditionally kept their marketing in-house, with the new compliance regulations there has been quite a shake-up. IFAs are now looking to external agencies to add value." So how can agencies help intermediaries? Tonic provides a range of services, including welcome letters, product sheets and sales aids.

However, it also provides more innovative marketing support, such as newsletters and customer magazines.

"Customer newsletters and magazines are on the increase - Mintel reports have shown a 244% increase over the last decade," says Dewhurst.

This approach can help relay messages in an informal, non-invasive way.

"These publications are an extremely cost-efficient marketing tool.

It's a great way to build up customer loyalty and increase the strength of your brand.

At the same time feedback from readers allows companies to build up accurate data and a better understanding of their customer base," says Dewhurst.

Other agencies specialise in specific marketing tools.

Premier Global Services (PGS), for example, produces a range of technologies designed to help businesses carry out campaigns by email, phone and fax.

Email can provide a cost-effective alternative to postal mailshots.

But you need to use the right technique to stand out.

Ongoing challenge "Presenting a simple, clearly branded, and uncluttered message regularly and using the same format is important," says Andrew Linfoot, senior account manager at PGS.

Using online tools can help target younger client bases too.

"The age of clients is a factor simply because of willingness and propensity to use the internet and PCs as a rule," says Linfoot.

However, attitudes are changing to online marketing and Linfoot adds, "silver surfers are not to be ignored." Creating a high-quality website can help enhance an adviser's corporate identity.

Just as branded stationery or company brochures reinforce a firm's image, a website can too.

Ensure your site does not let you down and that it carries the same messages.

"If a business is consistent in the way it communicates, straightaway it helps build-up trust and understanding from the customer," says Dewhurst.

Targeting younger clients is an ongoing challenge for many advisers, especially for health-related products.

The key to targeting specific age groups is to recognise how the needs of each client will differ.

"Clients in the 20-35 age group could include single people, newly weds, young families or single parents. Messages therefore need to be tailored to their individual aspirations," says McKie.

If you were talking income protection with someone who is single, you should gear the conversation around maintaining independence and avoiding moving back in with their parents, he suggests.

However, if the client has a family, it would be more about ensuring continuity of income to provide for their partner and children.

When identifying potential clients, first ensure your mailing list is up to date.

There are numerous software packages available to help profile your client database.

You then need to look at ways to grow it.

Gitsham says that in addition to purchasing lists, advisers should focus on local networking.

"Talk to other businesses that may have lists or contacts you can access. You may be able to create a joint incentive for new customers" He also advises on segmenting databases to help target clients with the right services.

"This can be done in a variety of different ways, such as by product, profitability and location," he says.

Joining the local Chamber of Commerce can also provide leads.

This may also be a good way into the business protection market, which, according to Le Beau, can be rewarding.

"Getting to understand the SME market and the needs of small businesses can unlock huge opportunities," he says.

Getting involved with the local media can reap rewards.

By joining IFA Promotion at www.unbiased.co.uk, you can register as a media-friendly adviser, so journalists can contact you for expert comment for articles and even broadcasts.

Local newspapers may also be interested in advisers providing an expert's column or regular feature for their finance pages.

"Public relations is becoming increasingly popular as it is seen as impartial and hence potentially more valuable than advertising.

It is usually also free of charge," says Gitsham.

Advertorials, which are a paid-for hybrid of advertising and editorial, are also gaining popularity and can be subtler than traditional adverts.

However remember to make sure the profile of the readership tallies with your target customer base.

Having a clear marketing strategy is good for business.

It will help you focus where you are and, more importantly, where you want to be.

And with the right approach, it should put you head and shoulders above the competition.

Kirstie Redford is a freelance journalist

COVER notes

All the main providers in the protection market provide support.

Making sure marketing material follows Financial Services Authority (FSA) regulations has to be a top priority.

When identifying potential clients, first ensure your mailing list is up to date.