Log in

Bullish Marketing Strategies for Online Brokerages for 2020 and Beyond

Wednesday, July 1, 2020 | MarketBeat Staff
The commercial environment for online brokerages has never been more competitive. With an ever-increasing number of operators entering the market, this means having an effective marketing strategy isn’t just important, it’s vital for survival. There’s no denying that this involves a number of challenges but, if you can manage to overcome them, it could mean a bright future for the rest of 2020 and beyond.
Bullish Marketing Strategies for Online Brokerages for 2020 and Beyond

Source: Unsplash

Ensure a steady flow of new business

New business leads are the lifeblood of any brokerage, so ensuring that you have a steady supply of these is key. But it goes beyond simply having data about who to contact. The more you know about them, and the greater the confidence you can have that the data is accurate, the better it will be. This is why it’s well worth investing in a service that will provide some B2B lead enrichment. At the most basic level, this will avoid the possibility of getting details wrong, on a more advanced one, it will allow you to create more targeted and relevant sales pitches.

Adopt the role of educator

While the emergence of online brokerages has undoubtedly made trading and investing simpler for many people, it is still a very complex area. This presents a great opportunity for any business to position itself as an educator. This can range from anything from providing a glossary of trading terms, to explaining complex investment strategies and concepts. This kind of information can be given prominence on a website, either as blogs or even part of an “education zone”; which can be gradually built up over time to create a comprehensive resource.

Maximize your presence on social media

Social media has become increasingly important for all kinds of businesses in all kinds of sectors in recent times, a trend that’s only going to increase. So, it’s hard to overemphasize the importance of maintaining a presence on all of the major platforms including LinkedIn, Facebook, and Twitter. Also critical is the nature of your content. This can include the topical and timely, for example when there is important financial news, or links to some of the education resources mentioned above.

Bullish Marketing Strategies for Online Brokerages for 2020 and Beyond

Source: Unsplash

Harness the power of affiliate marketing

The growth of the internet has led to many sectors becoming crowded with competing businesses. This has inevitably led to a potentially confusing situation for clients who have found themselves literally spoiled for choice. It has also led to the rise of affiliate marketing – sites that list a number of businesses within a sector, along with a review and a direct link to the site. The affiliate sites get paid for each introduction that converts into a client, and the business gets a new customer. It’s proving to be a highly successful method and one would be unwise to ignore.

Operate a loyalty scheme

Among the features of a brokerage that an affiliate site is likely to mention, is any loyalty scheme that it runs. This is because offering clients an incentive to continue using services is a tried and trusted method of retention. While loyalty schemes undoubtedly cost money to operate and administer, they can be well worth it, especially when compared with the costs and effort involved in acquiring new clients. These have been estimated as being up to five times greater when recruiting rather than retaining. The scheme itself can take a number of forms, including reducing brokerage fees for valued clients or other financial incentives. Obviously, the more generous you can be, the more effective the scheme will be.

To conclude, keep things simple

One key principle that runs across all these recommendations is to keep your marketing plans as simple and straightforward as possible. There will be time enough to get into the complexities of trading and investing once that you’ve recruited the client. But making your offering clear and accessible is what is going to get them to sign up in the first place.

So, avoid confusing messages and make sure that you have a clear positioning. Do both these things well and the rest should look after itself  - not just throughout the rest of 2020, but well into the future too.

7 Best Stocks to Own Right Now

Today, we are inviting you to view our list of the seven best stocks to own for the next thirty days.

Why is it worth looking into these stocks? Some of Wall Street's most respected and most accurate research analysts have been upgrading these stocks and raising their price targets for these companies.

No, we're not talking recommendations from some no-name blogger or a junior analyst from a brokerage you've never heard of. These stocks have received multiple positive recommendations in the last 30 days from analysts that have received four star and five star rankings from MarketBeat's proprietary brokerage ranking system.

Analysts given four star and five star ratings from MarketBeat consistently issue accurate price targets and their buy recommendations often outperform the market by double digits. Buy recommendations from our current top-rated brokerage, National Securities, have gone up by an average of 47.5% in the 12 months after they were issued.

We've reviewed every research report published by these top-rated analysts in the last 90 days and have identified seven stocks that these analysts are poised for an immediate breakout.

View the "7 Best Stocks to Own Right Now".

30 Days of MarketBeat All Access for $1.00

Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools:

  • Best-in-Class Portfolio Monitoring

    View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.

  • Stock Ideas and Recommendations

    Get daily stock ideas top-performing Wall Street analysts. Get short term trading ideas from the MarketBeat Idea Engine. View which stocks are hot on social media with MarketBeat's trending stocks report.

  • Advanced Stock Screeners and Research Tools

    Identify stocks that meet your criteria using seven unique stock screeners. See what's happening in the market right now with MarketBeat's real-time news feed. Export data to Excel for your own analysis.

Start Your Risk-Free Trial Subscription Here

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.