Investing is often framed as a numbers game – charts, allocations, risk models, market cycles, etc. - and that's understandable. Afterall, we invest to generate a return.
Where marketing becomes part of the equation is in connecting why we invest with how we feel about investing.
Fear, greed, overconfidence, regret – we talk about emotions in investing all the time. These are the headline makers, the stomach churners, the buzzwords that grasp our attention during times of volatility or uncertainty. But that’s only scratching the surface. Emotion is embedded in every financial choice a person makes.
Consider this: there is no such thing as an emotionless purchase. Even something as mundane as buying a pair of socks has a motive behind it. I know what you’re thinking. “Surely there is no emotion there, right?” Well, what if your old pair of socks is worn thin, or one has gone missing in the dryer. Maybe it’s full of holes or miscolored from a red shirt. You replace those socks so you’re able to show up to work confidently and comfortably, or go to the grocery store, or feel put-together for a first date. Embedded in that tiny transaction is a desire for respect, confidence, or connection.
If emotion shows up in a $5 purchase, imagine how much more powerful it becomes when the stakes are high.
An emotional priority
When a client entrusts a manager to invest their money, they’re not just allocating capital, they’re expressing hope. Dollars and cents become protection from future hardship. For retail investors it becomes preparation for retirement, funding for a child’s education, planning a legacy, or creating stability for a new family. Even with institutional investors, there are always people at the heart of every decision.
If you look just beneath the surface, there is an emotion behind every purchase.
Working in asset and wealth management, it’s easy to become anchored to an analytical mindset. But portfolios are not merely buckets of assets, they’re sources of hope and aspiration. To investors, they’re handing you a representation of their future, with all the hardships, sacrifices, discipline and fear attached that most people rarely say out loud.
Investing in never without risk, but it is a conduit for clients to realise their goals (often, their dreams).
Marketing plays a significant role in guiding how clients feel, especially when markets are volatile and headlines create panic. During these periods, investors need to understand what is happening, why it is happening and what the manager is going to do about it.
They need reassurance. They need to have confidence that any necessary action is being taken. Catering to their emotional needs becomes a priority because failing to do so could result in a bad decision being made at the worst time.
“I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” - Maya Angelou
At the end of the day, the purpose of an asset or wealth manager is to serve clients’ financial needs. But it doesn’t have to be so black and white.
At Alpha Agency, we believe marketing must be recognized as a strategic function. The breadth and depth of the capabilities within a marketing team plays a meaningful role in whether a company achieves its business objectives. But every investment decision has an emotional driver and we must never lose sight of that.
If you are interested in finding out more about how Alpha Agency can help keep people at the heart of your marketing activities, please don't hesitate to reach out.