Why the Top Investment Firms Are Using CDPs

Business Transformation|[wtr-time]

Why the Top Investment Firms Are Using CDPs

Regardless of your investment management firm’s niche, improving your marketing efforts to reach, convert, and retain more of the right investor audiences is a primary goal.

And that means you need to build a data-driven marketing program that brings your preferred investor prospects into your funnel so you can nurture them over time.

A 2018 PwC report noted the growing role of artificial intelligence in wealth management marketing in the coming years — a trend that will transform firms for the better:

  • “Real-time optimization of sales, marketing, client interaction, predictive modeling and near-instant processing of data will enable the AWM industry to rise to the next level, making AI a technology that managers should invest in at an accelerated clip.”

This type of AI-powered technology can help with a wide variety of investment marketing activities: from bolstering website traffic and enhancing engagement.

As investment management firms across the globe undergo digital transformations that make the customer the center of their marketing and data infrastructure, they are turning to an emerging technology to enable this shift: a customer data platform (CDP).

The benefits of customer data platforms for investment management firms

Customer relationship management (CRM) software has long been the centerpiece of investment management companies’ (and brands in countless other industries’) tech stacks.

What some these firms don’t realize, though, is tech has evolved a lot in recent years.

A CRM is still helpful for their organizations. But it’s no longer the main solution marketing and other growth-focused teams rely on to guide their engagement strategies.

The CDP has leapfrogged the CRM — as well as other legacy database technologies like data lakes — as the new focal point of investment management firms’ tech stacks.

Why? Well, for starters, with a pure-play CDP, these companies can:

  • Unify client and prospect data from disparate databases into a single source of truth
  • Activate data across channels for real-time messaging to individuals and segments
  • Update their contacts’ profiles dynamically based on new activities and behaviors

The list of customer data platform benefits goes on and on. Obviously, the use cases will vary slightly from one industry to the next. Suffice to say, there are several use cases investment management firms can take advantage of right after onboarding their CDPs.

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Specific CDP use cases for asset and wealth management companies

Before you build the case for adopting a CDP, it’s important to understand what the platform is capable of — particularly as it pertains to your business use cases.

Here are a couple of the most common ones for asset management companies like yours.

Use case #1: Consolidating all prospect and client data from disparate sources into a single source of truth.

As noted, using legacy systems to store critical client and prospect data can lead to wasted marketing spend and operational inefficiencies across growth-focused teams.

Thus, many investment management firms are allocating sizable spend to advanced analytics solutions to aid their digital marketing programs.

That’s where a CDP comes in. (Although it is much more than an analytics solution.)

In short, a pure-play CDP like Blueconic acts as the single source of customer data truth that can be activated in real-time to improve marketing performance.

Consolidating all of your first-party customer data into a CDP means you no longer have to pull in technical staff members (e.g., IT, data science) to create custom audience lists.

A CDP enables tech users to build any segment it needs in less than two minutes, and then immediately activate that segment across marketing channels.

One BlueConic customer in the asset management space experienced this exact issue: the need to integrate data from multiple data sources (e.g., campaign/analytics tools).

The company in question could rapidly deploy real-time messaging to individuals based on their marketing campaign association and predictive model scores and analytics.

Through these optimization efforts, the investment management firm saw its click-through rates via targeted messaging rise from 5% all the way to 40%.

Translation: Our CDP allowed the business to not only see the latest client and prospect interactions and act upon that engagement data  accordingly, but also gain predictive insights regarding likely future engagement and optimize programs accordingly.

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Use case #2: “Knowing” unknown users through dynamic forms and personalized recommendations.

Delivering real-time marketing messaging to prospects is certainly a top priority for modern wealth management companies looking to boost their most important conversion metrics.

But first, you need unknown leads to identify themselves so your team can provide them with the most pertinent product and content recommendations. A targeted promotional approach that has helped with engaging (and reengaging) consumers and investors.

Many wealth management firms play the long game with prospecting, as investors want to carefully evaluate what distinguishes one firm (and its funds and services) from another. An essential element of this nurturing process is promoting in-depth content on-site.

That means guides, videos, and other assets to educate investors on investment concepts and specific offerings, like equity investing, asset allocation, and other products.

Requiring visitors to fill out a form to access this content is how many investment firms gain more  first-party data for prospects and, in turn improve their recognition ratio.

In BlueConic, that refers to the number of contacts for whom they have at least one piece of identifying information they can then use to guide their marketing efforts to said contacts.

Once an unknown visitor becomes a known lead, you can deliver individualized messaging to them through various channels and touchpoints across  the customer lifecycle.

For example, once an unknown user (say, a registered investment advisor) fills out a form and becomes a known prospect, you can tailor emails specific just to them.

The commonality among all of these marketing activities and approaches?

A customer data platform like BlueConic enables growth teams, including marketers, to execute, analyze, and optimize said activities and approaches to continually improve their campaigns and real-time offers and, ultimately, generate more clients.

Use case #3: Build real-time client and prospect segments for key audiences that can be activated across channels.

You can also get even more granular and hyper-specific with a CDP like BlueConic by building sub-segments based on those contacts’ interests and behavioral data.

The more you’re able to narrow down your “best” leads into high-intent, high-value buckets through behavioral segmentation, the more capably you can engage them.

For instance, your individual investor segment will likely require a different outreach strategy than those for institutional investors and financial advisors.

With segments for each client category,  you can develop a wide array of personalized ads, emails, on-site messaging, and other promotional activities tailored for each one.

The sheer number of customer segments you can create in BlueConic’s pure-play CDP  for each investor client type is practically endless. For instance, you can:

  • Bucket RIAs into different groups based on specific engagements with your firm: site visits, emails opened, content downloaded, events attended, and the like
  • Separate investors by persona type, like those who typically convert into new clients within days or weeks versus those who take months to sign on or never do
  • The amount of risk certain kinds of investors are willing to take on in their (or their clients’) portfolios or the size of investor asset pools advisors in dollars

We could list many more customer segments you can build. The point is it’s up to you to test different segments using a CDP to determine which ones are worth continually targeting.

Enhancing your investment management firm’s engagement efforts with a CDP

Gaining a complete picture of investors across data sources and channels, then segmenting them based on several criteria used to be time-consuming and energy-draining.

That’s no longer the case when you have a CDP like BlueConic: an advanced, single source of truth that can save you time and energy with these important tasks, provide you with a single customer view, and enable you to be far more efficient with your marketing.

Improved advertising spend and performance. A true, always-accurate single customer views. An increase in operational inefficiencies. That’s what you get with our CDP.

Request a demo of our pure-play CDP from our team to learn how our platform can help your investment management firm accelerate business growth.


See what BlueConic can do for you.

Whether you’re looking for operational efficiencies or improved marketing effectiveness through data activation, our customer data platform can help.