Invest in your brand: Ignore what they say, watch what they do
It will be no surprise to anyone that when we asked almost 500 institutional asset management buyers globally about how important an asset manager’s brand is in their decision making process, the overwhelming response is that it isn’t important at all.
In fact, the institutions we spoke to as part of the annual NMG Global Asset Management Brand and Marketing Study identified thought leadership as the most important marketing-related driver of selection, followed by quality of product documentation and business support.
The story was similar in retail; where gatekeepers place enormous value on their robust processes to prevent biases such as those relating to brand. In the eyes of retail gatekeepers and advisers globally, our study confirms brand-related marketing factors are far less important than training from asset managers, market commentary, product documentation and thought leadership initiatives.
But asking people – even highly skilled institutional investors – what they think is important is never enough. And this is where it gets interesting because a closer examination of our results allow us to identify differences between what investors say they do, and what they actually do.
Our analysis shows that, contrary to what they say, buyers of asset management world-wide are allocating funds to asset manager brands they associate with superior brand strength and effective campaigns. Investing in brand, communicating a clear value proposition, and prioritising success factors are critical not just to keep the marketing folks busy – but to directly lift sales and improve market penetration.
Which leads us to the question – which brands are best? Our study covers 14 markets globally, and putting all those results together allows us to develop a global view of the leading brands in asset management.
While intangible, asset managers that are able to build positive brand equity (by increasing brand awareness and improving client loyalty) will benefit in the long run. The resulting superior flows, client fees and cash flow, and improvement in market penetration are, after all, what it’s all about.
NMG Consulting has successfully delivered the first globally consistent multi-channel asset manager study, examining key success factors and determinants of asset manager business performance. Our study provides us and our clients with the ability to benchmark global asset management franchises and help international managers prioritise future investment in distribution and marketing capabilities.
Download the full Leading Global Asset Manager Brands Insights Report here.
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