Maximizing Marketing Impact for Alternative Investment Firms With External Expertise
One of the most significant decisions firms will encounter is whether to outsource a function or build an in-house team to execute the strategy. There is no universal solution, and finding the right balance between the two presents a distinct challenge for each business.
Outsourced marketing has become increasingly popular in the financial services industry. In fact, marketing is the second most outsourced function, trailing only IT services. Notably, 59% of firms outsource their marketing to cut costs and gain expertise in areas their marketing team may not possess.
This article explores the benefits and challenges of hiring marketing expertise in-house versus outsourcing to an agency. Understanding the advantages and disadvantages of each will help firms make informed decisions, maximize their marketing efforts, allocate budgets wisely, and achieve the desired results.
Mapping marketing resources to organizational goals
The decision to outsource marketing functions versus hiring in-house depends on a firm's priorities. Start by reviewing the organizational goals and evaluating which marketing functions are most strategically important to meeting them. Consider areas such as public relations, thought leadership, demand gen, operations and analytics.
Armed with clear priorities, the next step is to evaluate the strengths of the existing team.
What are the team's strengths, and are they what the company needs to execute the marketing strategy effectively?
What would it take to fill any gaps based on the outlined goals?
Would it be most effective to outsource or hire a team member to meet these goals?
The last piece to get clarity on is budget, as it will dictate whether a firm will create a new role in-house, train existing team members, or engage an external expert. For example, if outsourcing content generation is costly and bringing those efforts in-house would save money without sacrificing quality, hire someone. If in-house public relations efforts are not reaching the goals, working with an expert might achieve better results due to their expertise and media relationships.
Signs a firm should invest in agency services
In today's competitive environment, effective marketing is crucial for attracting and retaining clients. The right marketing strategy can set a company apart from the competition. Working with a marketing agency with specialized industry expertise can significantly benefit a financial services business by improving the bottom line, increasing engagement, and achieving the firm's goals.
Listed below are signs of how it might be time to bring in a marketing agency to elevate a firm's brand.
Expertise Gap: Financial services marketing requires a specialized set of skills and a deep understanding of both marketing principles and the unique needs of varying audiences. If internal team members lack this expertise, they may struggle to develop and execute effective campaigns. Agencies that specialize in the financial services industry have the experience and knowledge needed to craft messages that resonate with the target audience.
Resource Constraints: Effective marketing demands significant resources, including time, personnel, and technology. If a team is stretched thin or if marketing projects are consistently delayed due to other priorities, it’s a clear sign that the firm could benefit from external support.
Need for Fresh Perspective: Even the best in-house teams can fall into the trap of using the same strategies repeatedly leading to stagnation and missed opportunities. An external agency brings a fresh perspective and new ideas that can invigorate marketing efforts.
Scaling Teams to Meet Firm Goals: As a company grows, so too must the marketing efforts. Scaling up can be challenging for an in-house team, especially if it requires new technology, additional personnel, or advanced expertise. Agencies are well-equipped to scale marketing activities quickly and efficiently, helping firms reach a broader audience and manage increased demand.
Specialized Marketing Needs: Certain marketing activities, such as digital advertising, SEO, content marketing, and social media management, require specialized skills. If a firm’s marketing objectives include marketing activities as described above, it may be more effective to hire an agency with a proven track record in these areas. Agencies have access to advanced tools and platforms that can optimize marketing campaigns and deliver better results.
Measurable Results and ROI: A key advantage of working with a marketing agency is their ability to track and measure the effectiveness of marketing campaigns. Agencies use sophisticated analytics tools to monitor performance and provide detailed reports on key metrics. This allows firms to see a clear return on investment (ROI) and make informed decisions about future marketing strategies.
How to vet a marketing agency
When collaborating with a marketing agency, firms encounter challenges that are not present with in-house teams. For instance, agencies manage multiple clients, which means the firm must navigate the agency’s priorities and timelines. To mitigate this issue, it is crucial to ask questions during the vetting process:
Does the agency’s expertise align with the company’s goals and needs?
What is the agency’s current capacity and growth plans?
Given the monthly budget, will the company be considered a priority?
Educating and familiarizing an agency with the offering and brand voice can be difficult and time-consuming. However, this extended onboarding period can be advantageous if the outsourced partners are viewed as long-term investments.
Determining the best option
Budget and team bandwidth constraints necessitate a strategic balance between in-house marketing teams and outsourced efforts. Begin by defining organizational goals and team needs, then allocate marketing dollars as effectively as possible to achieve those objectives.
Viewing outsourcing as an extension of an internal team and aligning agency expertise with the firm’s goals will make the investment worthwhile. Approach the relationship with the mindset of investing time in educating the agency, fostering a long-term partnership that will drive success for both parties.
Partnering with LaunchPad Creative
At LaunchPad Creative, we dedicate a team of professionals who partner with you to create a tailored marketing strategy aligned with your goals and objectives. Leveraging our alternative investment knowledge and marketing expertise, we build marketing strategies that elevate your firm’s brand and maximize business development efforts while streamlining internal processes so your team can focus on value-added efforts. Get in touch with a member of our team to learn more.