When we take a look under the hood of the fastest growing advisory firms, what will we see?
It starts with a true investment and focus in marketing, it seems.
According to the recently released first annual growth survey by Nitrogen (formerly Riskalyze), marketing is crucial for fueling the growth of hyper-growth advisory firms.
These firms excel in strategic marketing, investing substantial resources and leveraging various channels to drive leads and expand their reach. The disparity in marketing spend between hyper-growth and slow-growth firms highlights the commitment of hyper-growth firms to their marketing endeavors. Let’s explore how your advisory firm can learn from these successful superheroes and unlock growth and success through effective marketing strategies.
Client Focus
Hyper-growth advisory firms prioritize events to connect with potential clients and expand their reach, demonstrating their laser-focused approach to marketing. While both slow-growth and hyper-growth firms face marketing challenges, hyper-growth firms prioritize lead generation, while slow-growth firms struggle to differentiate their value in the market.
Investment
One notable difference between the two types of firms is their marketing investments.
Hyper-growth firms invest significantly more, with 27% investing over $30k per year, compared to slow-growth firms with meager investments of $1k or less by 26.1% of them. Investing more in marketing enables hyper-growth firms to generate more leads, expand their brand presence, and stand out in the market, propelling their rapid growth.
Marketing spending serves as a key indicator of hyper-growth firms, with them being five times more likely to allocate 10% or more of their gross revenue to marketing. In contrast, 75% of slow-growth firms allocate 3% or less to marketing each year.
Effectiveness
Hyper-growth firms consistently rate their marketing efforts as highly effective, thanks to their significant investments. To transform your firm into a hyper-growth powerhouse, it’s essential to overcome any negative sentiments surrounding your marketing efforts and adopt successful tactics used by hyper-growth firms.
Paid & Organic Strategies
Referrals are the primary source of leads for both slow-growth and hyper-growth firms. However, hyper-growth firms also benefit from a higher proportion of leads from organic marketing. Paid marketing is another area where hyper-growth firms excel, generating twice as many leads compared to slow-growth firms. This opens up opportunities for firms to leverage both organic and paid marketing to drive growth.
At Oak & Stone, we understand that marketing your advisory firm can be overwhelming and time-consuming. Our expert team is here to save the day, offering the time and expertise you need to effectively market your firm without exhausting your resources. Let us help you unlock your firm’s full potential for growth and success.
