Investment Management Marketing: A Sea of Sameness
Recently, we did some research into how investment managers brand themselves. Specifically, we wanted to identify the brand positioning and key messages of industry leaders. In compiling these core brand assets, we were struck by how generically and blandly investment managers describe themselves. At a time when the need to differentiate is more critical than ever, investment managers by and large communicate the same stale messages and interchangeable attributes.
A look at the current investment management brand landscape
An analysis of the top 30 institutional investment managers (as defined by Hoovers.com) demonstrates that larger firms are no more successful at differentiating themselves than their smaller brethren.
As this chart indicates, 57 percent of the top firms described themselves as “client focused.” Certainly, there is nothing wrong with being focused on the client, but this doesn’t buy a firm much in the way of differentiation. After all, if a plan sponsor believed that a firm wasn’t focused on their needs (including the need for higher returns), would they even consider hiring that firm in the first place? Doubtful.
The same is true for that perennial claim, “trust and transparency.” Never mind the fact that fully one-quarter of the top firms adopt this as top-line message; would a plan sponsor who didn’t believe a firm to be trustworthy and transparent hire that a firm?
Branding on table-stakes
These types of messages are what we call “table stakes.” They’re the must-haves – “jacks for openers,” to extend the poker metaphor. You need them just to be in the game, but they don’t ensure a winning hand.
Finding a unique brand position in a field as crowded and competitive as investment management isn’t easy. It’s tempting to fall back on safe ideas and tired claims. But in today’s financial climate, there’s nothing “safe” about an undifferentiated brand. Me-too branding may secure a seat at the table, but only a truly unique brand will ensure a winning hand.
Read our whitepaper “Do All Investment Managers Tell the Same Story? How Brand Differentiation can Drive Growth” for more detail on our research and how to build a differentiated brand in investment management.
