Email Contact Phone Company Visit Website

Location Head Office

160 Queen Victoria Street


0207 1633456


mark mh higgins
[email protected]
Back to all BNY Mellon announcements

Pershing Study Shows A Gap Exists between What Advisors Say and What Resonates with Investors

Successful Advisor Propositions Answer the Question, 'Why Should I Choose You?'

An effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now, according to a new study released today from Pershing, a BNY Mellon company. What Do Top Advisors Say and What Do Investors Really Think? reveals how an advisor can communicate their  value proposition to investors and differentiate themselves from other advisors in the industry.

A unique value proposition answers the critical question "Why should I choose you?", yet according to the survey 60 percent of investors say that many advisors make similar promises, making it difficult to distinguish between them. The strongest value propositions incorporate these four key elements:

  • attributes of the advisor;
  • benefits for the investor;
  • a rational explanation of how the firm's attributes benefit the client;
  • and language that evokes emotion

"Developing an effective value proposition can have larger implications on an advisor's overall business than they may realize," says Kim Dellarocca, managing director at Pershing. "In many instances, the value proposition is the first impression potential clients experience and can be the catalyst for a future relationship. It is also an opportunity for advisors to promote business growth by using language that differentiates themselves and targets their ideal client base by articulating attributes and features that appeal to specific demographics. Of course, the real test is delivering on what you promise."

Choosing the right language can make a big difference for investors. Pershing's study found that investors prefer value statements that incorporate "comprehensive" over "holistic" by a ratio of seven to one. Additionally, two topics that investors care about most – conservative investment approaches and trust – are under-represented in most value propositions.

Based on a systematic look at the value propositions used by top advisors, and investor reactions to these and other value propositions, Pershing has identified key takeaways for advisors to consider when creating a value proposition of their own.  They are as follows:

  • Include core promises—but add more. Investors found three themes to be the most compelling among advisors' value propositions: tailored solutions to meet their needs, advisors working for the investors' best interest and experienced investment managers. An advisor's website and marketing materials should include these top promises.  Advisors who do not mention these in their value propositions risk being excluded from consideration by potential clients. Successful advisors also need to include something extra to differentiate themselves, such as why investors should choose them over other advisors or unusual client benefits like building a family legacy or understanding personal aspirations.
  • Don't oversell simplicity. Many websites promise to simplify investing and relieve clients of the burden of managing wealth, but according to Pershing's study, most investors accept the need to take an active role in managing their own finances.
  • Give conservative approaches more prominence. If advisors' money management approaches place special emphasis on preservation of capital, it should be a highly visible component of their value proposition.
  • Work hard to establish trust. Trust remains a much bigger concern for investors than the financial industry realizes. Advisors must ensure their value propositions include a message on why investors should trust in them and includes themes like trust, accountability, integrity and fiduciary responsibility.
  • Tailor the message to the ideal client profile. Different market segments place higher emphasis on different attributes. Advisors should know who their ideal client base is and what is most important to them in an advisor, and make sure their value propositions exhibit those points. For instance, investors under 40 place higher importance on advisors who will provide guidance through life's major events and relieve the burden of managing finances.
  • Watch your language. Investors dislike jargon and favor words with emotional connotations- that means how the value proposition is formulated is just as important as the message it is trying to portray. For example, when judging between near-synonyms, investors prefer words with an emotional punch, such as "unwavering" and "passionate" rather than "committed" and "dedicated".