Time for Financial Services to ‘Change the Conversation’

DALLAS -- The financial services industry has suffered plenty from bad publicity in recent years.

Changing that narrative should be priority No. 1, said Maribeth Kuzmeski, an author and marketing consultant based in the Chicago area. A campaign of pressure from regulators and consumer groups has agents and advisors on the ropes image-wise, she said.

“I think the financial services industry is full of everyone having all these negative conversations about what advisors and agents are not doing,” Kuzmeski said. “I think it’s time for us as an industry to change the conversation and the message, and control it for ourselves.”

Kuzmeski is speaking today and tomorrow at the 2017 Advisor Super Conference. She is expected to share many of her Red Zone Marketing concepts for getting leads and making sales.

For many, especially younger Americans, the Department of Labor fiduciary rule might be the first substantive narrative they have heard about financial services. And that is not good, said Kuzmeski, author of seven books on marketing.

The fiduciary rule began taking effect June 9 with regulations that require anyone selling into retirement accounts to to act as fiduciaries, make no misleading statements and accept only “reasonable” compensation.

Phase two of the rule establishes a class-action right to sue in the sales of certain products, but is expected to be delayed until July 1, 2019.

Now it is time for the industry to respond with an image makeover, Kuzmeski said.

“How are we standing apart, as opposed to letting other people and the media dictate how people feel about financial advisors?” she asked. “I think we have to change the conversation.”

That starts with emphasizing the unique strengths in each agent and advisor. It might be a niche expertise, or even a vast experience edge. But each agent/advisor has something unique to offer, Kuzmeski said.

“A lot of time advisors think, ‘Well no, there really isn’t anything unique. I kind of do the same things that other people do,’” she said. “I totally disagree with that. I think there’s something unique with every advisor.”

Social media is another area Kuzmeski said agents and advisors need to get friendly with if they want to survive and thrive. It’s about using all the tools in the toolbox to reach potential clients, she explained.

“Today, with everyone being so distracted as they are, it’s more important than ever to think about all the things that we’re doing as it relates to how we are messaging ourselves and messaging our values,” Kuzmeski said.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com.

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