How client segmentation fuels institutional asset management marketing success

Deep research and data-driven insights are key to winning institutional business, according to institutional marketers at a recent event 

Key points: 

• Institutional investors have diverse priorities, making a segmented approach essential.

• Investors in different regions have distinct biases and preferences, requiring tailored messaging.

• Without a strong brand presence, sales teams struggle to get in front of asset owners to get in sales, so brand building plays an important role. 

Institutional investors are not all alike. Understanding the nuances of different institutional audiences is critical for asset management marketers looking to cut through the noise and build meaningful engagement, according to a group of senior institutional asset management marketers. 

At a recent breakfast meeting organised by Aureum, Fundamental Group’s research and consulting business, a group of ten institutional investment marketers shared insights on the evolving landscape of institutional marketing, the power of brand-building, and why segmentation is the key to effective engagement. 

Participants acknowledged that one size clearly doesn’t fit all in line with the findings of recent research from Fundamental Group. Across the surveyed countries and types of institutional asset owner, decision drivers and investor preferences vary. There are varying types of institutional segments, which makes it important for marketers to take a segmented approach that is relevant to the varying institutional investor audiences.  

“We can’t do everything we want to do, so we need to make choices and set priorities on where we spend our time and resources,” one participant noted.  

This means institutional investment marketers need to pick their battles. One participant recommended looking at competitors and the market environment and, based on that, decide where you want to compete. By analysing market data, competitor strategies, and investor behaviours, marketers can refine their efforts and focus on the institutional segments that offer the highest potential. Since marketing budgets are finite, the key is to be relevant and targeted. 

Institutional investors want more than just facts and figures

One of the biggest myths in institutional marketing? That those investors only want long, dry reports. Participants agreed that institutional investors are still people – they have aspirations, doubts and preferences like any other audience. 

“The content itself may differ,” noted one marketer, “but institutional investors still appreciate engaging formats. They don’t want content that’s just long and boring.” 

Understanding the specific characteristics of each market and audience is essential. The participants agreed that having local representation and being close to the market makes a tangible difference to how institutional investors view different asset management brands. For example, investors in the UK have a home bias and equity focus, with institutional investors expecting to meet with portfolio managers. Even small details, such as using UK English instead of US English, can shape how a brand is perceived.

How marketers can derive insights from research

Research insights, such as those provided by the institutional investors reports from Aureum, are a key tool for asset management marketers in gaining a better understanding of investors’ concerns and priorities, and how their brand is perceived in different markets. 

Combined with web statistics on content performance and other data points marketing has access to, these research insights help marketers identify investor preferences that may not be immediately obvious. For example, an institutional investor might tell a salesperson they aren’t interested in emerging market debt, the data might show that they just signed up for a webinar on that very topic. Fact is that often the institutional investor will only share with the salesperson what they want to share at that moment in time.  

“There are parts of the market that sales can’t reach, but marketing research and data collection can. The sales team may have time/money constraints to go after every single prospect, but we could target them and then they go to sales once they’ve been turned into warm leads. It’s all about data-led insights,” one participant summarised. 

What role does brand play in reaching clients?

But without having a trusted brand, even the best-performing asset managers struggle to get in front of the right clients, so brand building plays an important. One participant was clear about her hesitance to speak too much about brand in an institutional context. “What do we really mean by brand? Doesn’t the brand encompass everything?”, pointing out the importance of clear definitions. “Do we mean what institutional investors think of performance? The pricing? Communication support?”

One marketer said: “Sales is an important part, but it’s about the whole value chain and the experience of institutional investors across the board. The salesperson is the most tangible piece, but they’re only as good as the product, the events, the investment strategy etc.”  

Institutional marketing is evolving fast, and firms that embrace client segmentation, market-specific insights and data-driven strategies will be the ones that thrive.