Tag Archives: social media marketing

The Road to Hedge Fund Transparency: Marketing Essentials and Potential Pitfalls

To survive and prosper in a marketplace where transparency and trust are now valued by investors and promoted by regulators, hedge funds will be increasingly required to build a rational and risk-averse approach to external communication. Ideally, those plans will also avoid many of the non-productive tactics that marketers are known to promote.

Here’s a marketing roadmap designed to achieve that objective:

Build your brand strategy first. This internal discipline yields a unified view and clear expression of what your firm seeks to achieve for investors, how it addresses that goal, what makes it uniquely qualified for consideration, and why investors should select and trust your firm. An upfront articulation of the firm’s value proposition serves as the cornerstone of a written marketing plan that should include: tangible business goals, appropriate marketing strategies and tactics, calendarized activity, budgets and accountabilities. Any firm that operates without a formal plan (which should be simple, and not take months to create), eventually becomes a victim of “trust me it’s working” marketing. No plan = lots of wheel-spinning + no tangible business outcomes.

Create a bona fide website, not a proxy. In an online world, websites are the mother ship of market transparency. If a hedge fund is unwilling to provide on its website essential information related to its capabilities and credibility, then the firm is not really serious about market communication. Ideally, your website should express institutional values, explain investment processes, showcase human capital, provide examples of thought leadership and include inherent 3rd party endorsements. It’s not a sales pitch or report card. Your website will generate investor interest by allowing visitors to draw their own conclusions about the firm and its potential to help them achieve their goals.

Leverage your firm’s intellectual capital. Thought leadership – which is overused marketing jargon – is a strategy that leverages knowledge and ideas to engage target audiences. Effective thought leadership can involve a broad range of marketing tactics, but should always be designed to achieve measurable goals; not to simply have people think you’re smart. A hedge fund’s intellectual capital represents its most powerful market differentiator, and can be showcased without giving away any proprietary information or methodologies.

Harness the market reach of LinkedIn. LinkedIn has become an important due diligence tool for investors, intermediaries and the financial press. Most hedge funds understand this, and either provide a very basic firm profile, and / or allow its employees to post their personal profiles on LinkedIn. But to harness LinkedIn’s enormous market reach and professional clientele, hedge funds must establish a buttoned-up institutional persona that’s consistent with the firm’s (bona fide) website; ensure that its employees’ profiles enhance the firm’s brand positioning; and take full advantage of appropriate user groups on LinkedIn to raise brand visibility and display its thought leadership. 

Hold off on Twitter and other social media sites. Twitter can be a great information source, and most hedge funds should use it exclusively for that purpose: to listen rather than to speak. Few hedge funds have the time or social media sophistication to engage safely and consistently on Twitter, and the compliance risks are significant. Facebook is simply not an appropriate channel for hedge funds, and posting comments on independent blogs or online publications will not yield meaningful results.

Manage press exposure selectively. Beneficial media exposure can provide valuable brand credibility. But this is a high-risk tactic because reporters have agendas, can make mistakes, and are not in business to make your firm look good. However, hedge funds should proactively seek media exposure through participation in targeted editorial opportunities – such as bylined articles, OpEd pieces and certain types of feature articles – if they provide total or nearly complete control over what’s published. Although guest spots on financial news channels such as CNBC can fuel the ego, these are high-risk opportunities that most hedge funds should avoid.

Unfortunately, most media coverage yields no marketing value, because it’s simply hung like a hunting trophy on a firm’s website. To benefit from the implied 3rd party endorsement, beneficial coverage must be properly integrated into the firm’s direct communication strategy with clients, prospects and referral sources.

Merchandise conference participation. Investor conferences are high-cost tactics that can be effective for hedge funds. But these events also yield low results because firms fail to properly re-purpose the related thought leadership they’ve produced; which can serve as raw material to influence target audiences that are much larger, and sometimes of higher value, than those in attendance at the conference. Doing all the heavy lifting (in terms of content preparation, travel, time away from office and home), but failing to benefit from that investment – both before or after the event itself – represents a tangible opportunity loss.

Forget advertising for now, and perhaps forever. Regulators have not made it easy for hedge funds to understand the rules of the new advertising game, so the industry is better off encouraging the very large players – with deep compliance muscle – to be the first ones on the field. But there are more significant reasons why most hedge funds should never include advertising in their marketing plans. Notably, institutional advertising is expensive, requires a long-term commitment to be effective, and is very difficult to measure or generate a market response. More importantly, at most hedge funds there is an extensive list of marketing strategies and tactics (for example, building an effective website) that should be addressed first, and that will provide a more meaningful return than advertising.

As market dynamics of the investment world drag hedge funds, however reluctantly, into the new era of transparency, there is some good news for those firms. Hedge funds have long demonstrated their ability to sustain a successful business enterprise without traditional marketing tactics. So any benefits that effective market communication might provide for them are very likely to result in incremental asset growth.

Additionally, because hedge funds do not currently depend on marketing for survival, they can act in a deliberate, strategic manner. Hedge funds have the luxury of being able to design and implement their marketing programs incrementally, and to focus on doing a limited number of things very well.

In that regard, other vertical industries may eventually point to hedge funds as examples of best practices in branding and marketing. But at the current rate of change, that’s unlikely to occur in our lifetimes.


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Should I Rekindle My Blog Love Affair…Or End It?

Can This Blog Affair Be Saved?

Can This Blog Affair Be Saved?

Here’s a sad letter from the Marketing Craftsmanship mailbag:

Dear Marketing Guy,

I’ve fallen out of love with my Blog and I need your advice. My sad story:

It was love at first sight. A company Blog had everything I was looking for in social media. It would drive SEO. Establish thought leadership. Engage clients and prospects. Create two-way communication. Build long-term relationships.

My competitors all had Blogs, and I needed one. It would complete my marketing.

Falling in love with my Blog was so easy. WordPress.com was the perfect matchmaker, and my Blog didn’t cost me a penny to build. I had big plans for my Blog. Topics we would cover together. Discussions I would moderate. I made a personal commitment to post regularly. My Blog and I would create beautiful leads together.

It was a great love affair…at least for a while.

After a few months, my Blog started demanding more of my time. But my Blog wasn’t living up to expectations. Few people visited, only employees commented on posts, and there were no leads in sight. My disappointment grew, but my Blog demanded even more content. “I need interesting ideas, not sales promotion,” my Blog would scream. We grew further apart. Weeks, and sometimes months, passed between posts.

Now, my blog and I are the office joke. Blog visitors wonder if my company has a pulse. My Blog has become a brand liability. I can’t look at the company’s website anymore, because my Blog is always there, reminding me of our failed relationship.

Does my Blog deserve a second chance? Or should I simply move on? Help!!!

Yours Truly, Blog Gone Wrong

Dear Blog Gone Wrong,

Lots of companies fall out of love with their Blogs. I feel your pain, but you’ll get little sympathy from me. Here are  a few questions to start you thinking about why your Blog relationship fell apart so quickly:

  • Was your Blog part of an integrated marketing strategy…or just a temporary infatuation?
  • Did you create an editorial calendar to provide content focus…or made promises you could never keep?
  • Did you assign sufficient resources to ensure your Blog’s long-term success…or were you just looking for a cheap date?
  • Was there a strategy to promote your Blog and to merchandise its posts…or did you think that would just “happen”?
  • Were there tangible and realistic business metrics to measure your Blog’s ROI…or did you think pre-nuptuals would kill the relationship?

My guess is that you were attracted to your Blog’s many fine features and benefits, but were unwilling to invest the time and resources necessary to build a meaningful, long-term relationship. If that’s the case, you really don’t deserve a Blog.

You might be better suited for a relationship with a Twitter account.

The Marketing Guy


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Do Most CEOs Lack Social Skills?

Do CEOs need charm school, rather than business school?

According to a new study sponsored by Domo and CEO.com, CEOs at Fortune 500 companies are participating in social media channels significantly less than the general public. The study claims that 70% of them have absolutely no presence on social media.

On the major social networks, including Facebook, Twitter and Google+, the participation of Fortune 500 CEOs was minimal, with only 7.6% on Facebook, 4% on Twitter, and less than 1% on Google+. In comparison, more than 50% of the U.S. population uses Facebook and 34% uses Twitter.   No Fortune 500 CEOs are on Pinterest.

LinkedIn is the most popular social media site among Fortune 500 CEOs, with 26% on the network, compared to just 20.15% of the U.S. general public. Of that group, ten Fortune 500 CEOs have more than 500 LinkedIn connections, while 36 CEOs have 1 LinkedIn connection or none.

Six Fortune 500 CEOs (or more likely, their PR departments) contribute to blogs, and only one of the six CEOs, John Mackey of Whole Foods, maintains his own blog.

Given the demographics of Fortune 500 CEOs, none of this news is jaw-dropping. Older, well-established corporate guys (and gals) in the business world’s stratosphere are not wired for social media.

But here are some potential take-aways from the research:

  • The propensity of C-level executives at companies of all sizes – well below the Fortune 1000 level – to invest time on social media outlets is extremely low. Top decision-makers spend most of their day dealing directly with people within their own sphere of influence. And most C-level execs still are not convinced that social media is anything more than a technology hula-hoop that will eventually run out of steam.
  • Marketers attempting to reach and influence C-level decision-makers are still best-served by leveraging the channels that are used and respected by that target audience…including traditional business media sources and professional forums; and by seeking to influence the 2nd and 3rd tier corporate executives who provide insight and guidance for  C-level decision-makers…which may involve selective use of social media tools.
  • Aspiring CEOs may still be more likely to reach the top of the corporate ladder by joining the right country club, rather than by having 500 connections on LinkedIn.

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Should Companies Manage Their Employees’ LinkedIn Profiles?

Everything Counts in Brand Management

LinkedIn has become an important business channel, not only for individuals to showcase their professional credentials, but also for companies seeking to promote their value proposition and to establish or manage brand awareness.

LinkedIn is no longer simply a social media tool that enables corporate executives to put themselves in play for a better job under the guise of “networking.” LinkedIn also is no longer just a digital marketplace for consultants, freelancers and agencies seeking new clients. For better or worse, LinkedIn has become part of the world’s due diligence process: a public resource that enables employers, customers, regulators, competitors, prospective employees, referral sources, vendors, creditors, shareholders, research analysts and journalists to look beneath the covers, and to establish an opinion (or decision) not only regarding individuals, but also the companies they work for.

Although LinkedIn provides companies with an opportunity to present a basic or enhanced (for a hefty fee) corporate profile, what most businesses either fail to recognize – or are reluctant to address – is that the content, quality and consistency of individual and collective descriptions of the company embodied within their employees’ LinkedIn profiles can have a significant impact on brand perceptions. (These brand implications are less significant on Facebook, which is not generally viewed as a business channel.)

To illustrate the point, simply in terms of brand clarity and consistency, here are 5 different ways (grammatical shortcomings and typos included) that High Street Partners – an 80-person Boston-based consulting firm – describes itself through various LinkedIn profiles of its employees:

“High Street Partners is an international business services firm. We simplify the management and control of international operations, empowering our customers to capitalize on their growth opportunities in foreign markets.”

“High Street Partners (HSP) is the leading professional advisory firm in the international expansion space. We offer a range of cross-border finance and administrative services to organizations with new or existing global operations, including entity set-up, payroll, accounting, tax compliance, advisory and HR services.”

“High Street Partners provides international business services to companies operating overseas. These services include international accounting, tax, global cash management, HR and compliance solutions that mitigates a Company’s risk when operating in foreign markets (www.hsp.com.)”

“Our cross-border solutions enable the HQ finance and HR teams to quickly and efficiently implement expansion plans, establish appropriate entities, get overseas employees paid, and navigate unfamiliar overseas tax codes and compliance regulations.”

“Providing financial, tax and compliance services to companies in their international explansion.” (sic)

There are (at least) two fundamental issues involving LinkedIn:

  • The employees’ right to describe themselves any way they see fit on social media sites, and
  • A company’s right to protect its brand reputation through accurate and consistent descriptions of the enterprise that are posted on social media sites by its employees.

Although the underlying issues related to freedom of expression and corporate intrusion frequently serve as catalysts for heated protests and endless debate, there is really no good reason why both employee and corporate interests cannot both be served, if the process is managed in a reasonable, respectful manner.

At the risk of over-simplifying an issue that can quickly escalate to union grievances, CEO town hall meetings, picket lines and national media coverage, perhaps the company’s Chief Marketing Officer can initiate the change process with an internal memo along these lines:

Dear Valued Employee:

We are encouraged to see that so many of our staff members are using LinkedIn to develop professional networks. Increasingly, social media tools like LinkedIn are playing an important role in personal and corporate life.

While we recognize and support your personal right to participate in social media sites, we would like to ensure that the descriptions used in your LinkedIn profile to describe our company are consistent with the guidelines we’ve established to enhance understanding and appreciation of our corporate brand.

Toward that end, we would greatly appreciate your cooperation in using only the approved description of our company for your LinkedIn profile. This company description is located on Page 3 of our Employee Handbook. In fact, we have recently added some additional suggestions regarding LinkedIn profiles, which you may find helpful.

Thanks for your support on this important issue. If you have any questions or concerns on this topic, please let me know.

Your Friendly CMO

An alternative approach regarding brand presentation in employee LinkedIn profiles is to do nothing. Maybe it’s an issue that’s too insignificant or considered not worth the time. But companies with enduring world-class brands understand that everything matters. That’s one reason why you never see a dirty UPS or FedEx delivery truck.


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