Results From The

2024 Nitrogen Advisor Growth Survey

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“This survey encapsulates our commitment at Nitrogen to empower wealth management professionals with actionable insights and forward-thinking strategies. We believe that understanding the landscape of today is the first step in crafting the client success stories of tomorrow. Our goal is that these results help all advisory firms not just grow but excel in every facet of their business.”

– Dan Zitting, CEO at Nitrogen

One thing we’ve learned:

With a decade of platform data, the average advisor has won $23M with Nitrogen, or $2.3 million a year. Assuming a 1% advisory fee, that’s $23k in compounding new revenue every year. For the majority of firms this results in 10x return on their software spend with Nitrogen before considering other benefits including reduced client churn and increased client satisfaction.

Key findings from our 1,333 respondents:

Regulations are a hurdle

Increased regulations are viewed as the number one threat to growth by advisors

Referrals are key

61% percent of advisors report that most of their leads come from referrals, bridging the gap between client satisfaction and firm growth.

Tech is a game-changer

91% of advisors stand firm in the belief that the right technology is a game-changer for client satisfaction.

Compliance tech gap

Only 17% of advisors are using compliance tech daily, uncovering a gap in the integration of compliance tech solutions.

A small peek at each section of the advisor survey:

Some of the answers were in line with what you would expect: Most advisors feel that growth is “extremely important.” Seventy-two percent of advisors want to grow and feel they have the capacity to do so. The question then follows: Why?

 

Why do you want to grow?

Maximize personal income 31.73%
Gain PE investment 3.92%
To create a legacy firm that lasts for generations 21.97%
To stay ahead of the generational wealth transfer13.79%
To maximize valuation 14.35%
Not applicable 14.24%

 

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In the “Technology” portion of the survey, we aimed to uncover which software advisors are turning to in their pursuit of growth and which types of software are shaping their everyday processes. The results here reveal an overarching disconnect between advisor goals, strategies, and technology.

 

 

continue reading about Technology Learnings

Regardless of whether you’re a veteran in the advisory world or just embarking on your journey, mastering the nuances of advisor marketing is key to forging meaningful connections with potential clients. This segment of our survey delves into the financial commitments firms are making towards marketing efforts, unveils the most fertile grounds for lead generation, and highlights trusted sources for staying ahead.

 

Besides “referrals,” which of the following options is the highest-converting marketing channel in terms of converting leads to paying clients for your firm?

Google Ads 5.7%
Bing Ads 1.23%
Social Media Ads 8.39%
Organic Social Media 9.96%
Website Traffic 15.21%
Content Marketing/SEO 14.88%
Events 37.92%
Brand Partnerships 6.71%

 

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We’ve established that advisors believe client satisfaction and retention are the most important factors for growth – and the fact that most new leads come from client referrals supports that – but how are advisors approaching client engagement and satisfaction?

The power of checking In

There's a notable distinction in communication frequency, with 14% of advisors using Nitrogen touching base with clients weekly, in contrast to just 8% among other advisors.

Niches & responsiveness

20% of advisors advocate for focusing on a specific niche as the most effective means of differentiation, whereas 16% emphasize the significance of rapid responses to client inquiries as a key factor in making their firm more distinctive.

Automated surveys

When asked what the biggest barrier is to incorporating client surveys, time is the clear winner. Twenty-three percent of advisors point to the time and effort it would take to get started, and another 21% point to the ongoing time and effort as the primary barrier holding them back.

In our survey, when advisors were asked about the greatest threats to firm growth, the majority answer (34% of responses) identified the rise in regulations and compliance requirements as a major obstacle to achieving the rapid growth they aspire to.

 

 

continue reading about business growth insights

Download the Full Survey

Unlock the full survey filled with data from 1,333 advisors and expert commentary by Nitrogen.