Royal Bank of Canada has the golden lion. Edward Jones has the friendly faces. A firm’s public image and advertising play important roles in the struggle to get clients to the door.
That’s why it’s surprising to find the average rating for firms’ advertising in this year’s Brokerage Report Card is 5.2, less than a full point higher than 2002’s dismal 4.5 rating. Brokers clearly remain dissatisfied with their firms’ advertising, yet they appear happier about their firms’ images. The average rating for a firm’s public image is 7.3, up substantially from last year’s 6.4.
So why do advisors put a premium on the firm’s image and the advertising that helps build that image? Because, says Terry Hetherington, national sales manager of Vancouver-based Raymond James Ltd. in Toronto, “Clients are more selective about choosing an advisor.” How Canadian brokerages make a name for themselves in a bear market, when clients are choosy, is important to brokers.
Advisors say a strong brand is an asset. An RBC Investments Ontario broker sees RBC’s lion logo as a distinctive symbol: “RBC has a conservative image, with excellent brand awareness. The RBC brand offers clients comfort.”
But some advisors at other bank-owned firms dislike being associated with parent companies. “The worst thing is the brand recognition. The bank association is a problem. Here, Nesbitt Burns is better known than Bank of Montreal,” says a BMO Nesbitt Burns Inc. broker in Western Canada.
A CIBC Wood Gundy broker in Ontario thinks the worst aspect of the firm is the public perception of it: “We’re seen as a big, bad bank.”
Instead of marketing itself as a bank-owned entity, Richard Lupien, national sales manager of Montreal-based National Bank Financial Inc., says the firm prefers to put money into the advisors’ hands via an “entrepreneur account.” This allows advisors to choose how to spend their advertising dollars. It’s one way NBF is differentiating itself from the other bank-owned firms, Lupien says. The firm also encourages its advisors to get out and meet clients, offering gifts to clients to celebrate the firm’s 100th anniversary.
“Timing is important,” Lupien says. “Clients are dealing with the bear market and are looking for help.”
What’s a company to do if it’s independent, has a few dozen offices across Canada and no bank backing? Bob Larose, national sales manager and executive vice president of Canaccord Capital Corp. in Vancouver, says his firm allows brokers to brand themselves. Canaccord’s advertising rated a 4.9, and some advisors think marketing is weak. Larose says everyone has a “wish list,” but the company is examining its priorities: “We are more prudent than two or three years ago, but there have been no major cutbacks.”
Marketing budgets are not being cut at Burlington, Ont.-based Berkshire Securities Inc., says Geoffrey Charlton, senior vice president of national sales, although its advisors rate its advertising a 2.8 (the lowest in our survey) and some think there’s a lack of advertising funds. Berkshire is helping its advisors with client education, and has created an events team to provide heavily subsidized seminars. Charlton believes advisors have important stories to tell, especially in this market. “We help advisors get to the consumer. That’s where we need to be, and that’s where people will see the Berkshire name,” he says.
Jones uses seminars and traditional advertising as marketing strategies, but also stresses face-to-face prospecting. “When they start up an office, our reps go out and meet thousands of people in the community,” says Gary Reamey, head of Canadian operations, based in Mississauga, Ont. “We want brokers to go out and meet everyone they can: business owners, homeowners. We think that’s the best way to start business relationships.”
Most Jones advisors seem to agree, giving their firm a 7.1 for advertising and a 8.4 for public image. Both are top marks.
Hetherington says Raymond James is also focusing on grassroots marketing, adding more community events and local sponsorship, and shying away from national initiatives. “We firmly believe in the human touch,” Hetherington says. “We don’t have automatic answering systems. We try to let clients talk to real people.”
Local marketing seems to be the way to go if you’re a small firm and new on the block. Bill Fulton, COO and deputy chairman of First Associates Investments Inc.in Toronto, is addressing the problem of marketing in the aftermath of a merger. “There’s a need to get out and tell the story,” he says. “We’re doing client appreciation nights to thank clients for their business. They meet the management team, see the people.”