By Justin Wells, Partner and Chief Revenue Officer

In the quest for organic growth, many RIA leaders instinctively seek greener pastures beyond their own backyards. While expanding your geographic reach is a natural instinct, it only makes sense once you have `a) nailed your core value proposition, b) dialed in a growth engine, and c) fully plumbed the opportunities that exist in your immediate market. More often than not, there are plenty of prospective clients and organic growth opportunities close to home if RIA leaders know how and where to look—and how to effectively engage that audience by using “localness” to their advantage.

RIAs may feel pressure from larger firms moving in on their turf and competing for the same client base. But those firms probably lack a genuine presence in that local market, as well as a deep understanding of customer needs that are unique to the area. They are typically massive machines that are focused on nation-wide brand building, and prospective clients are likely not fooled by their efforts to be the “hometown” or boutique RIA.

On the other end of the spectrum, there is no doubt a number of small, independent RIAs that have deep roots in any given community, but most are simply too small and stuck in their ways to be a genuine threat and outcompete local, growth-focused RIAs for new client assets.

Clearly, there is an opportunity to be the “Goldilocks” RIA that is smart, progressive, and targeted in how it offers its services and communicates with prospective clients. The bottom line is that until you are crushing growth in your own backyard, you shouldn’t be exploring other geographies.

In our research, and in talking with more than 100 RIAs over the past 12 months, we’ve found that strong organic growers possess the following traits:

• Strong brand and well-defined value proposition that resonate in local market
• Multi-channel approach to sourcing leads
• Strong ground game (work the networks, events, relationships in your local area)

Differentiate your brand and offering

The number one rule in marketing an RIA is this: “everyone is not your audience.” In other words, get specific about who you are and what you have to offer and to whom. Differentiate your brand based on the needs of your local market. Are you in a fast-growing tech market with lots of first-generation wealth? Speak their language. Make it clear that you understand their needs and pain points, whether that is dealing with complicated equity vesting schedules, navigating high property costs, or understanding changes to state and local taxes and economic conditions. Or perhaps your market is home to considerable multi-generational wealth. In that case, your messaging and brand should communicate your understanding of the nuances of wealth transfer, estate planning and legacy building.

Further, don’t be afraid to go deep into professional / industry niches. If your market is a healthcare hub, medical doctors could be an attractive segment of clients to pursue. Maybe your market is home to a significant number of attorneys, or auto dealers, or manufacturing companies. Identify those niches. Present a brand that is clearly aligned with what their leaders care about.

The point is that it’s critical to understand the specific demographics of your core market. Ensure that your website, social media and all other outward-facing sales and marketing materials make that clear. Again, don’t try to be all things to all people. “Everyone” is not your prospective client, or else “no one” will be your new client.

Take a multi-channel approach

In this digital marketing age, it is essential for RIAs to take a multi-channel approach to reaching their desired audiences. Gone are the days when a firm could have a static website and call it good enough. RIAs must utilize all the channels that their prospective clients are using. Everything from social media (e.g., LinkedIn, Facebook, YouTube, TikTok, using both organic and paid ads) to optimization of your website for search engines like Google to targeted email campaigns.

Most RIAs fail to implement even the basics of digital marketing. For example, 9 out of 10 firms we have reviewed have stale information on their Google Business Profiles (if they have one at all) and/or no way to get in touch with them on their profiles. Does your firm have a Google Business Profile? Is your business searchable in the geographic area you cover? Is it up to date? Are you advertising on Google Ads and LinkedIn, targeting the prospective clients and niches described above within your specific geography? You should be.

Of course, most of us still live in the real world, so complement your digital marketing with unique in-person events and meet-and-greet opportunities. Give your prospective clients a chance to meet you in the flesh. It’s critical to take a “surround sound” approach and nail your local digital and in-person marketing.

Expand your network

Too many RIA leaders myopically focus on prospective clients, and only prospective clients, when marketing their services. That is an overly simplistic and overly linear approach. The reality is there are many ways to reach potential clients, including local centers of influence (COIs) like estate planning attorneys and accountants, business leaders, civic leaders, faith and religious leaders, all of whom likely have close relationships with your core audience. Engage with these “connectors.” Take them out for lunch or coffee. Make it clear you want to partner with them to provide a much-needed service to your community. Communicate what’s in it for them. Building relationships with these connectors is every bit as important as the end clients you are trying to reach, as the influence and sway they have with your potential clients can be very powerful. Treat the members of your network like you would treat any client: measure the impact you’ve had on their business, track engagement in your CRM, and check in with them to ensure that the partnership is working for both of you. Additionally, applying targeted marketing to members of your network should aid in brand awareness for your RIA and help to drive referrals.

Contact us to learn how Aspen can help you win clients for the long run.