The problem with networking is that everyone is at it. Your target network is likely to know all your competitors. So how do you make sure that your network chooses you and not someone else? asks Caroline Garnham.

Editor's note: This is the second of a series of articles written for this publication by Caroline Garnham, founder of the Family Bhive the online marketing platform for wealth advisors and their clients, and a former head of private client with Simmons & Simmons. Her views are her own, but this publication is pleased to share these insights and welcomes reader responses.

The preferred form of marketing by the wealth advisory industry seems to be networking, despite it generally being somewhat haphazard.

One of the top private banking marketers confided in me that it takes at least five years to build up a good network before making worthwhile client acquisitions. Furthermore, networks are often only vaguely aware of what a company does in any detail and in particular its expertise.

Casting the net wider

A further problem with networking is that everyone is at it. Therefore many in one bank’s target market will be in their competitors’ networks. This leads to an expensive and wasteful “arms race” with banks putting on more events to keep their message at the forefront of their targets’ minds. And, despite their attendance at events, or referrals from colleagues and associates, all too often the response to a detailed proposal is:  “I never knew you did that.”

An increasing number of firms in the HNW space are taking an innovative approach to marketing by using a digital platform as a methodology which is both time and cost efficient. First of all the firm must build a micro site or “shop window” where it can promote and increase brand awareness by regularly publishing content highlighting its services and expertise, events, news and achievements. Much of this can be from the existing material being prepared by the marketing department, meaning that there is little time investment; it is also easy to obtain metrics on what works well, what is being read, what is being skipped, so results can be evaluated fast.

The online platform enables the partner company to do some simple research such as checking  the services, news and views of complementary companies such as lawyers, property consultants, accountants and cultural organisations which share the platform and whose content shows them to have clients in the partner’s target market.

Offline these complementary partners can then form “constellations” - they will be star companies sharing similar values and brand recognition, as well as similar overlapping clients and customers. Each member of the constellation is expected to read the material of the others and where appropriate bring it to the attention of their clients and customers. The constellation can then decide whether and what event they may wish jointly to host. This could be promoted online to maximise the impact of the event among a wider but targeted audience.

This new way of networking will win new business more effectively and efficiently, and will also be more enjoyable. It will no longer be “the same old faces”, but rather an audience of new prospects and better prospects.