My recently departed colleague and Money magazine writer, Chris Walker, frequently joked that the latest marketing buzzword was…wait for it…buzzword.

Jokes aside, ‘influencer marketing’ is the latest catchphrase, and it could offer value to savvy financial planners. Influencer marketing involves using a high-profile spokesperson, who can be allied to your firm’s products or services. It’s a strategy that can seriously grow sales.

Celebrities and sports personalities are used extensively in fast-moving consumer goods industries, such as fashion, to influence consumers. In other sectors, more companies are using bloggers with large followings to promote their brands. The right influencers with the appropriate appeal have the ability to build your business’s brand power and amplify your messaging in order to reach new consumers.

Why influencer marketing is popular

Influencer marketing has grown for a number of reasons. For starters, consumers are tired of paid commercials. This is diminishing the effectiveness of traditional advertising. While influencer marketing has a cost attached, marketers reckon it works because it doesn’t look like paid advertising.

Likewise, the explosion of social media makes influencer marketing a valuable strategy. The likes of Facebook and Twitter have made it easier for your business to get in front of consumers. With a recognised influencer who has a strong online following on board, it’s possible to target the Twitterati big time.

Using influencer marketing can be useful for working across demographics. Indeed, it’s essential when targeting anyone under 35, although the stats show it can engage with multiple age demographics. It’s an adaptable marketing technique, too. Previously the domain of the fashion and consumer goods sectors, influencer marketing is now working for other industries.

But can it work for financial planners?

Influencer marketing will work for financial planners as it does for fashionistas, if it fits with your strategy and messages. Likewise, if you’re seeking a serious connection to help boost your message, there are a number of financial bloggers with tens of thousands of Australians following them for financial advice.

Moreover, some successful campaigns have tied well-known celebrities to finance. I particularly like this style of campaign, as it ‘normalises’ financial planning. BT which is a client of mine, ran an engaging campaign using household names such as publishing industry icon Ita Buttrose and former NRL star Nathan Hindmarsh to sell the value of planning. This works because BT is using their profiles to help tie BT’s content marketing and influencer programs together, amplifying the message across their digital platforms.

Is there a downside to influencer marketing?

 Like any marketing or sales technique, influencer marketing has its pros and cons. It’s easy to pick the wrong influencer and this is why research is a must. A high-profile influencer who becomes embroiled in nightclub incidents can have a disastrous impact on your brand.

Moreover, you must track the results. As with all marketing, if you simply target ‘awareness’ with an influencer strategy, without starting with some goals or targets, you’ll find your chances of generating sales success will be slim.

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