Can growth hacking be applied to Investment Management? Can investment management really apply an active experimentation framework? Keep reading and you will discover how it can help you and your company.

Growth hacking is a new methodology in the marketing field, specialized in making companies grow, including those dedicated to investment management. It achieves its goal through quick and inexpensive tests to see which ideas can improve the customer experience. This way it is proven what works without investing a lot of resources and money is not wasted on ineffective strategies.

In order to grow our investment management company we need to know what metrics measure its growth. The ones that measure it best will be our key metrics, such as conversion rate from leads to customers, monthly website traffic maintenance of current contracts or new product sales.

The next thing we need to do is to set objectives. Objectives should be SMART, i.e. specific, measurable, achievable, relevant and timely. How to increase new customer retention by 20% in three months would be an example of a SMART objective. What a goal is looking for is to increase or decrease your key metrics.

As soon as we are aware of what helps us to grow, which KPIs are most important and we have set SMART objectives, we must develop growth drivers. These drivers will hypothetically allow us to achieve our objectives. We will discover which are effective and which are not through small campaigns, called experiments.

Possible growth drivers for the investment management industry could be SEO, user referrals, experience optimisation, big data, remarketing or investor confidence. 

Which one is best for us, and which one should we focus on? This is what we are going to test through the growth hacking methodology.

Investment management is the professional management of various securities assets (including stocks, bonds and other assets such as real estate) to achieve specific investment objectives, thus benefiting investors. Like growth hacking it is a results-based industry, the higher the results the higher the profit and the more successful the business, so we can look to benefit from the profits generated from users by asking them for reviews. The key would be to find a way to make it easy for the user to give us feedback and a review without complicating their time, this is something we can test!

 Finally as part of the strategy we could gain the trust and confidence of our investors. Investment banking is an area where trust is key. In fact, they manage one of a person´s most precious assets: savings. Therefore, if the client does not trust us, it is likely that in the end no product will be contracted. Ensuring that customer data and transactions are always secure is never enough resources. Mistakes here can have very serious commercial consequences: 

• How can we give this trust to our customers?
• How can we differentiate ourselves from larger companies or companies with more advertising power?
• What should our short-term goals be with our investors?

If we want to develop the right marketing strategy we need to answer many questions like the ones above using small tests that allow us to have a global vision of what can help us to GROW.

Finally, we must document the learnings to know which actions have worked and which have not. It is vital to create a regular feedback loop and to track learning on an ongoing basis.

Want to learn more about how to apply growth hacking to your investment management business? Sign up for Hypertry and request a one-on-one session.