Josh Tilley, Brand Strategy Director, Initials CX
In finance, a powerful brand reputation differentiates the reliable from the outstanding, the forgettable from the memorable and the transactional from the trusted advisor that clients rely on for the long term.
An impactful financial brand stands out in a crowded market, conveying unique value and expertise that differentiates your firm from the rest. It’s this level of brand strength that not only builds client trust but also fuels financial growth and positions your firm for lasting profitability.
A strong brand serves as a critical assurance of reliability and security. Clients want to feel confident that their equity is safe and that they’re working with a trustworthy partner who has their best interests at heart.
A reputable brand embodies stability and integrity, giving your customers the peace of mind that investments and transactions are protected. This trust is invaluable, especially in an industry where financial missteps can have far-reaching consequences.
And with research showing that 90% of clients in financial services select providers they already recognise, your reputation is often the pivotal factor that guides client choice.
Yet despite these clear advantages, many financial firms still undervalue the strength of their brand – a costly oversight in a sector where client acquisition costs are continually on the rise.
What’s the yield of a strong B2B brand?
As marketers, we sometimes overcomplicate things, especially when distinguishing between consumer and B2B brands.
Marketers might work hard to highlight this difference but to the average person, they’re irrelevant. In both cases, what truly matters is a strong, straightforward message that resonates and sticks.
Step into a wine shop looking for the perfect bottle for a dinner party and you’ll likely choose one with a reputation for richness and balance. Similarly, when choosing an investment advisor, you’re going to go with someone you trust to provide solid returns and a dependable client experience.
A clear value proposition is invaluable in finance. Your firm needs an identity that investors and clients instantly recognise, whether it’s your brand assets or the way you conduct business.
Consider the success of the Big Four accounting firms. Their strength lies not just in advertising but in the robust structure they’ve established over time, ensuring that everyone understands their values, behaviours and brand tone. When seeking an auditing partner on a multinational scale, companies naturally gravitate toward these trusted names, knowing they can rely on their reputation and expertise, even it means paying a premium for their services.
Just like with Sage and Xero, many people may not be familiar with the specific details of their products, but they trust their reliability and quality. This level of recognition beyond the company’s core audience reflects the strength of brand.
This brand awareness and trust are fundamentally tied to a positive customer experience. If your investment platform experiences downtime or your customer service team is unresponsive, clients are likely to lose confidence in your firm.
By making customer interactions straightforward and enjoyable, clients are more likely to perceive their experience positively, leading them to return with their business year after year.
Why is a strong B2B brand a solid investment?
When it matters, you buy the brands you know you can rely on.
For instance, when investing in your family’s financial future, you’ll likely go with established firms like Vanguard or Fidelity, known for their stability, strong performance and reliability, rather than an unknown startup.
The same principle applies in B2B, where 90% of buyers select a vendor they already know before starting their purchasing journey. This means without establishing familiarity and loyalty with your target audience, you’re essentially competing for just 10% of the market.
It’s no surprise then, that B2B firms with a strong brand enjoy a 46% greater market share.
Especially in financial services, B2B buyers want to be recognised for making sound, prudent decisions. They can’t afford to partner with an untested or unfamiliar brand as a poor choice could jeopardise their professional reputation or have serious financial consequences.
As a result, they tend to return to the brands they trust.
And with the cost of acquiring new clients on the rise, having a differentiated brand is more crucial than ever. In a market with few standout names, many financial firms are pouring resources into SEO and PPC strategies, driving marketing expenses up by 66% since 2018.
To complicate matters, at any given time, only 5% of B2B buyers are actively looking to make a purchase. Many firms without a robust brand resort to a ‘spray and pray’ marketing strategy but this approach often leads to 95% of their budget being wasted the moment the campaign launches.
Having a strong brand goes beyond merely raising awareness: it’s about reaping commercial benefits.
By creating a memorable brand, B2B financial firms can shift their focus from a relentless pursuit of ROI to fostering successful relationships with clients and prospects in innovative and efficient ways, ultimately generating long-term value.
