Acquisition isn’t always the primary challenge for businesses—while it may pose difficulties for some, it’s not the case for most, especially in the asset management sector. With the right budget and skilled marketing professionals in place, acquiring clients is achievable. However, retention is a different ballgame that demands intentional and strategic efforts. This is where activation plays a crucial role, transforming new clients into long-term, engaged investors.
Activation ensures that first-time investors are not only introduced to your platform but also guided toward meaningful investment decisions. This article explores what activation entails and outlines the key strategies that asset managers can use to build lasting relationships.
What is Activation?
Activation is the process by which a new investor moves from simply signing up to taking their first investment action. Effective activation strategies ensure that investors go beyond just creating an account—they engage with the platform, make their first deposit, or set up an investment plan. Fintech companies worldwide will agree that app sign-ups don’t equate to customers; they only represent potential clients. The goal is to convert these prospects into loyal, long-term investors through intentional engagement.
Activation process can be summarized into the following steps:
- Lead Generation and Acquisition: Attracting new investors through targeted campaigns.
- Onboarding: Helping them sign up and navigate the platform seamlessly.
- First Investment Action: Encouraging them to make their first deposit or start an investment.
- Engagement and Retention: Keeping them engaged through follow-up communications and personalized content to ensure long-term commitment.
Why First-Time Investors Matter for Asset Management Growth
First-time investors are key to the growth of any asset management firm. They bring fresh capital and are more likely to engage with digital-first tools and educational resources. Focusing on activation strategies for asset managers can turn these first-time users into loyal clients who contribute to the firm’s long-term success.
These investors often rely on their initial experience to gauge whether the platform meets their needs. By focusing on activation, firms can create a positive, confidence-building journey that encourages repeat investments and client advocacy, fostering organic growth through referrals and social proof.
How Activation Sets the Foundation for Loyalty
As mentioned earlier, activation is not just about getting a new client through the door—it’s ensuring that their experience is seamless and confidence-boosting. Once an investor is activated, they’re more likely to engage long-term, contributing to a cycle of loyalty. Without effective activation, a firm risks losing investors to competitors who may offer a smoother or more engaging experience. Turning first-time investors into clients requires marketing teams to:
Develop ongoing content that keeps investors informed and engaged (e.g., newsletters, performance updates, educational resources).
Leverage personalization to send tailored recommendations, ensuring investors feel that their unique needs are understood.
Use social proof and testimonials to build credibility and create emotional ties with the brand.
Read more on marketing approaches that can change your business here.
Key Activation Strategies to Convert First-Time Investors
Converting first-time investors requires well-developed activation strategies that cater to their unique needs, particularly those of digital-savvy Millennials and Gen Z. Let’s look at a few steps to achieve this.
1. Simplify Onboarding for a Smooth Investor Experience
Onboarding is the first major step in the activation journey. A smooth and simple onboarding process ensures that new investors feel comfortable and confident. The fewer obstacles an investor faces during onboarding, the more likely they are to engage actively.
2. Using Digital KYC for Quick Sign-Up
Digital Know Your Customer (KYC) tools streamline the sign-up process by allowing for quick, secure identity verification. This eliminates the need for manual paperwork and allows investors to start their journey immediately, improving the likelihood of activation.
3. Providing Step-by-Step Guidance During Onboarding
Many first-time investors feel overwhelmed when navigating a new platform. Providing clear, step-by-step guidance—through tutorials, checklists, or progress indicators—can ease their concerns and keep them on track. By breaking the process into manageable stages, firms can increase the chances of the investor reaching the activation point.
4. Personalize the Onboarding Journey
Personalization is key to a successful activation strategy. Investors want to feel that the platform understands their unique goals, risk tolerance, and preferences.
5. Tailoring Onboarding Based on Investor Profiles
Segmenting users based on their investment goals or risk appetite allows firms to tailor their onboarding experience. Whether the investor is looking for low-risk options or more aggressive strategies, a personalized approach will make them feel understood and valued.
6. Offering Educational Resources to Build Confidence
First-time investors often need additional education to feel comfortable making investment decisions. Offering bite-sized, easy-to-understand educational resources during onboarding—such as tutorials, articles, or explainer videos—empowers them to take action confidently. This builds trust and supports long-term engagement.
7. Retaining Activated Investors for Long-Term Engagement
Once an investor is activated, the focus shifts to keeping them engaged over the long term. Consistent communication, performance updates, and celebrating key milestones all contribute to a long-lasting relationship.
8. Follow-Up Communication and Performance Updates
Automated follow-ups are essential for maintaining engagement. After the first activation, investors should receive timely and personalized communication, including performance updates, portfolio suggestions, and news relevant to their investments. This continuous interaction reassures clients that they are making progress, keeping them actively engaged.
9. Setting Investment Milestones and Celebrating Progress
Acknowledging and celebrating an investor’s progress is a powerful retention strategy. Whether they’ve reached a savings goal or achieved a certain return on investment, celebrating these milestones with personalized messages, rewards, or badges strengthens the emotional connection to the platform and encourages continued engagement.
Conclusion
Effective activation strategies are critical to transforming first-time investors into loyal clients. By simplifying the onboarding process, personalizing the investor journey, and providing educational resources, asset managers can ensure that new clients not only engage with the platform but remain active over time. To up your business activation game, contact us
