Getting your “Moxie”

If you look up the word “Moxie” in the dictionary, you will find it is a noun that means “energy, pep, courage, determination and know-how.” You can also see that the source of this word is the brand name of a soft drink. Have you ever heard of “Moxie” soda?

We have all heard of Pepsi and Coca-Cola, but we may be surprised to learn that Moxie was a popular soft drink that originated in New England around 1900. In fact, in the 1920s, Moxie outsold Coke and was so popular that the word “Moxie” became a part of the American vocabulary — every marketer’s dream! So why have most people today never heard of this soft drink? According to historians, after the onset of the Great Depression in 1929, Moxie decided to cut almost its entire marketing and advertising budget. No more “Moxie Men” driving around to promote the soft drink in their painted trucks. Meanwhile, Coke decided to ramp up its advertising budget despite the tough times. The rest is history.

Is there a parallel in today’s economy for companies (and advisors) who decide that to save costs they are going to slash their marketing budgets? We think so. A recent study by The Oeschli Institute found that many American financial advisors have actually gone into retreat and are not reaching out to new clients. Only 48% of advisors report increasing their marketing efforts at this time. And only 3.2% of advisors had brought on 10 or more new clients in the $250,000 to $500,000 range in the last 12 months compared to 26% of advisors in 2007!

We don’t usually advocate spending a lot of money on “attraction marketing,” which includes advertising, direct mail and cold calling. These methods have been shown to be costly and less productive for financial advisors. The most effective approach is to use more targeted client acquisition methods including introductions, strategic networking and building your unique brand identity. Currently we see the most successful advisors taking advantage of some competitors’ reluctance to invest in their business, and ramping up their marketing budgets.

Several recent studies have shown that up to eight out of 10 affluent clients are considering moving to another financial advisor, so the opportunity for new business could not be better. Unfortunately, to prospective clients, financial advisors all look the same. Now, more than ever, you should communicate your unique brand and value proposition in the marketplace to help you stand out from the crowd.

An advisor we’re working with, Neal Owen of BlueRock Wealth Management Inc., has done this. Owen is very clear on the ideal client he wants to work with. He was in the midst of completing our marketing and branding program to create a brand that would connect on an emotional level with those ideal clients, when the market took a downturn. He realized that this was an opportunity, because many prospective clients are open to another opinion. Rather than pull the plug on all his hard work, Owen continued to invest in his marketing and branding program, realizing that when the market does turn around, he will be ahead of other advisors.

Now is the perfect time to reach out to unhappy clients to help them create a recovery strategy and financial plan for their future when many of your colleagues may be in retreat. To do this you must continue to invest in yourself and your business.

Question is, do you have the “Moxie” to do it?

April-Lynn Levitt is a Calgary-based coach. She provides one-on-one customized coaching to financial advisors, helping them to achieve greater confidence, focus and freedom.

(07/14/09)