In today’s competitive marketplace, financial services companies are constantly seeking ways to stand out and attract customers. Two key marketing strategies that often come into play are brand marketing and lead generation marketing. But what should the mix be in marketing for a retail equities brokerage firm? What might the mix of marketing strategies be for a hedge fund trying to raise assets from institutional investors? While both types marketing strategies aim to grow the business, they do so in distinctly different ways. Here’s a closer look at the core differences between the two, the types of tactics used under each, and how to balance them depending on your goals or needs.
Core Differences
Brand Marketing
Brand marketing focuses on building awareness, loyalty, and a positive perception of the company or product over time. It’s about creating a strong, memorable brand that resonates with consumers and fosters trust. Building and making a brand visible is also known as distribution.
Lead Generation Marketing
Lead Generation, also sometimes called demand generation, is more about driving immediate interest and action. It’s tailored to generate leads and drive conversions by promoting specific offers, products, or services. This strategy targets potential buyers who are ready to take action or are in the process of making purchasing decisions.
Types of Tactics
Brand Marketing Tactics
Effective marketing requires a strategic blend of tactics designed to enhance visibility and foster strong connections with your audience in order to build and maintain a powerful brand presence.
- Brand Advertising: Promoting a company’s brand through various channels to increase brand awareness and establish a strong brand identity.
- Social Media Engagement: Utilizing social platforms to create a recognizable and relatable brand image.
- Public Relations: Managing the dissemination of information to the public and media to influence the perception of the brand.
- Sponsorships and Partnerships: Associating with influential entities to enhance brand recognition and credibility.
- Influencer Marketing: Collaborating with influencers to leverage their reach and credibility, thereby extending the brand’s message to a broader and more engaged audience.
- Brand Storytelling: Crafting and sharing compelling narratives about the brand’s history, mission, and values to foster a deeper emotional connection with the audience.
- Event Marketing: Participating in or hosting events to create memorable experiences that align with the brand’s values and provide tangible interactions with potential customers, thus strengthening brand loyalty.
Lead Generation Marketing Tactics
These methods work together to convert interest and drive action from potential customers into tangible business outcomes.
- Email Marketing: Sending personalized, targeted emails to nurture leads and drive conversions.
- Paid Advertising: Using pay-per-click (PPC) campaigns, display ads, and sponsored posts to generate immediate interest.
- Offers and Lead Magnets: Offering freebies like eBooks, whitepapers, or free trials to capture leads.
- SEO and SEM: Optimizing content and investing in search engine marketing to attract potential buyers actively searching for solutions.
- Calls to Action (CTA): Including clear and compelling CTAs in your content to guide potential customers towards taking the desired action, such as signing up for a newsletter or making a purchase.
- Account Based Marketing (ABM): Focusing on high-value accounts with personalized campaigns designed to engage and convert specific targets within those accounts.
- Content Marketing: Creating and distributing valuable, relevant content to attract, engage, and convert a clearly defined audience, often through blogs, videos, and social media.
- Social Media Marketing: Leveraging social media platforms to engage with potential leads, build relationships, and drive traffic to your website or other digital assets.
Brand Marketing or Lead Generation Marketing?
Why not both! We can help blend the two into one overall strategy.
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Balancing Brand Marketing and Lead Generation
Depending on Goals or Needs
Achieving the right balance between brand marketing and lead generation is crucial for sustained success and growth. The emphasis on each should shift depending on your business goals, the stage of your company, and industry dynamics.
- Startup or New Product Launch: Initially, a higher focus on demand generation is essential to create quick, measurable traction. However, building brand marketing efforts simultaneously can ensure long-term growth and loyalty.
- Established Brands: Once the brand is established, the focus can shift to maintaining a balance. Brand marketing should account for about 60-70% of efforts, ensuring continued brand loyalty and recognition, while lead generation takes 30-40%, focusing on converting new leads and driving sales.
- Industry-Specific Focus: In fast-moving industries like tech, lead generation might take a larger share to quickly adapt to new trends and drive immediate results. In contrast, industries like retail might benefit from a balanced approach to maintain customer engagement and drive consistent sales.
What Mix of Brand Marketing vs Lead Generation Marketing Should Financial Services Firms Have?
Let’s compare the marketing strategy mix for a hedge fund versus a retail brokerage firm. Are they completely different? There is no perfect answer of course but use these percentages as a guide to what your mix may be depending on your financial organization’s goals and needs.
Retail Equities Brokerage Marketing Mix
Retail brokerage firms such as equities, futures, FX, and crypto firms have lower margins per trade but make up for it based on high-volumes and low cost of service. As such a retail financial firm should have a higher amount of demand generation activity. Brand marketing is still a key component as brand recognition, customer reviews, and recognition from leading publications, media outlets and on social media build credibility, can drive demand, and serve as endorsements.
For retail brokerages, I would recommend a mix of 65% lead generation to 35% brand marketing mix.
Hedge Fund Marketing Mix
Hedge funds serve institutional, family office, and high-net worth investors and solid reputation, brand recognition, and general visibility are key. However, a major mistake many institutional firms make is not considering Lead Generation–or as would be done in an in-person, typical, institutional sale, “ask for the sale” by including calls-to-action or lead capture activities. McKinsey Consulting, one of the largest consulting firms on the planet, is not above asking for the sale by simply making it easy to inquire, or offering white-papers, newsletter subscriptions, and other important assets behind a lead capture form.
For Hedge Funds and similar institutional financial firms, a marketing mix of 80% brand marketing and 20% lead generation is a good ratio.
Bottom Line
A successful marketing strategy often requires a blend of both brand marketing and demand generation marketing. Whether your financial services is retail or institutional, by understanding the core differences, utilizing the right tactics, and adjusting the mix based on specific goals and needs, you can effectively attract, engage, and retain customers.
Ready to get started with an updated marketing strategy? Gate 39 Media is here to help! Contact us to get started.
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About the Author: Shane Stiles
Shane Stiles is President of Gate 39 Media, a financial services marketing firm providing online marketing and application development for financial services across futures, equities, alternative investments and insurance.
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