ROI re Hedge Fund Marketing, Social Media and Branding Best Practices

Brand positioning is inherently an iterative and ongoing strategy that requires an arsenal of tactical approaches in a world that has become increasingly crowded thanks to the‘socialization’ of every tiny tidbit of information that could possibly be imagined.

Within the context of the financial services industry, and in particular the ‘hedge fund’ space, the rules of engagement vis a vie socializing your value proposition so as to engage a broader audience is a topic of spirited discussion, if not strongly-positioned debate.

Given that ‘finance industry folks’ are trained to be constrained courtesy of a legacy culture of secret sauces and proprietary strategies, complicated compliance concerns and a traditional view that “less is more” when it comes to being transparent whenever discussing what sets you apart from competitors, social media tactics are only starting to gain traction. No surprise when considering that the most relevant metric that any credible HF operator is rightfully focused on is ROI, HF marketers are measured most by the assets under management they bring in to their firm, and the institutional investor that is writing the check.

Valuation metrics such as ‘good will’, “brand recognition” and brand perception are illusory at best for the hedge fund world (other than when HF due dili wonks are distilling the balance sheet of a fast growth company whose valuation includes those aforementioned metrics). The common wisdom for HF “Stars” seeking 15 seconds or more of fame to promote their firm is typically focused on getting interviewed on CNBC (or better still, Bloomberg TV), a speaking role at an industry conference (which typically requires a ‘pay-to-play’ sponsorship),  and of course, frequent attributed comments in business news publications and gossip page sightings at one of the dozens of fund raising events that memorialize financial industry celebrity in perpetutity.

Since we broached the topic of how the JOBS Act would change the branding landscape nearly 2 years ago, there’s since been no shortage of news articles, white papers, and of course, a litany of financial service friendly social media ‘expert brand marketers’ shedding light on best practices for those “hedgies’ seeking to leverage new and more liberal advertising regulations (e.g. the “JOBS Act”) and better ways to navigate today’s brand positioning ecosystem. That said, the following article published in March edition of The HedgeFundJournal.com and written by another (and arguably more recognized firm) that specializes in the HF brand communications space is a great read, if only because the take-aways underscore and provide enhanced credibility to the exact observations and talking points that we’ve shared right here over the past 2 years.

Without further ado, and giving credit when due (to Peppercomm), here’s a respected expert insight…

The JOBS Act at Year One… A changing hedge fund communications landscape

The private world of hedge funds is looking more like Madison Avenue. Hedge funds today are everywhere – in daily headlines, social media, public web sites, live TV coverage, and even highly visible Las Vegas bashes. They are also increasingly in the portfolios of institutional and retail investors.

Once a shadowy, inaccessible and little understood part of the asset management world, hedge funds are growing, diversifying, extending product lines, acquiring competitors, targeting new markets, stepping up client relations – in short, acting more and more like the large, sophisticated businesses they’ve become. Driving and supporting this business transition is a changing attitude toward and approach to marketing communications. As hedge funds have grown to $2-trillion-plus in assets, they are tackling issues and opportunities like brand, visibility and reputation, all in the face of stiff competition. 23 September 2014 marked the first anniversary of the enactment of the Jumpstart Our Businesses (JOBS) Act, and provides an opportunity to look at how hedge fund communications have evolved. The JOBS Act was designed to spark US economic growth, in part by allowing hedge funds to solicit accredited investors. As a result, hedge funds are now allowed to employ tactics such as engaging the media, building accessible websites, advertising and even social media. And while neither we nor others point to the JOBS Act as the sole driving force behind the implementation of new communications strategies by hedge funds in recent years, no one denies that these changes are taking place. So what has changed in hedge fund communications since the JOBS Act went live?

Here’s a run-down of the key areas that are most affected, including social media, websites, traditional media, advertising and executive hiring.

Hedge funds go social

Live blogging from hedge fund conferences. Activist managers tweeting about dinners and deals. Long-form YouTube videos explaining the economy. Hedge fund marketing decks posted to LinkedIn. Today’s conversations are moving online, and the hedge fund industry is following suit. Though the pace of change is deliberate rather than dramatic, it’s nonetheless real change, as hedge funds begin the transition from being a topic of conversation to leading the conversation.

To illustrate this trend consider Fig.1 from GNIP, a leading social data provider, which tracks monthly mentions of the term “hedge fund” on Twitter. Mentions over the last two years have peaked at nearly 80,000 per month and have rarely fallen below 40,000.

We are seeing a similar trend on the hedge fund conference circuit, one of the few places where fund executives have been known to shed their cloaks of secrecy and share economic and strategic insights. A relatively new element at these major conferences is that they are now social media-friendly, leading attendees to live-tweet their experiences. As a result, audiences have expanded from the select group in attendance to anyone with Internet access. For example, the use of the #DeliveringAlpha hashtag increased by 9.4% from 2013 (5,053 Tweets) to 2014 (5,527 Tweets) on the day of the event. Similarly, there was a 62.6% year-over-year increase in the use of #IraSohn. The #DeliveringAlpha hashtag was even briefly trending on Twitter in July, with 53.5 million estimated impressions.[1] But how are hedge funds themselves using social media? Two recent examples: Carl Icahn’s tweet about his dinner with Apple’s Tim Cook was retweeted nearly 500 times, [2] while Bridgewater’s Ray Dalio YouTube video explaining how the economy works has been viewed more than a million times.[3]

For a more comprehensive gauge, we looked at the 292 members of Absolute Return’s list of hedge funds with at least $1 billion in assets.[4] Peppercomm research shows that 10% of the largest 292 hedge funds are on Twitter. Of these 29 funds, six have protected accounts. The remaining 23 have an average of more than 15,000 followers and average about 11 tweets per month. By removing the three firms with the largest following – PIMCO, BlackRock and J.P. Morgan Asset Management – all of which have expertise and products well beyond and including hedge funds, those numbers drop to an average of 515 followers, with just four Twitter accounts generating new content more than once a month. In total, 10 hedge funds tweet at least once a month and seven hedge funds tweet at least 10 times per month.

 

The lack of participation among 22 of the 29 hedge funds on Twitter suggests a lack of a strategic plan for how to use social media. Indeed, all but four of these Twitter accounts were launched prior to any JOBS Act legislation. Hedge funds are slowly coming to terms with the importance of social media. Many fund managers are shocked to find out how often their firm is mentioned on Twitter, yet they lack the experience to engage. “We can no longer keep our head in the sand,” said the manager of a billion-dollar credit fund who plans to join Twitter. We also looked at LinkedIn, where hedge funds are more visible. Here, 66% of the largest hedge funds have a LinkedIn page. Of these 188 funds on LinkedIn, only six have posted any updates, and only four post more than 10 times a month. The 188 funds collectively manage $1.24 trillion and have an average of 2,305 followers – each one representing a prospective investor, employee or journalist. Every decision not to post content is a missed opportunity to engage – a wasted opportunity to establish expertise or deepen a relationship. Social media can be an effective tool if used properly. We expect to see more hedge funds using social media platforms to establish thought leadership, share insights and improve their digital profile.

An expanding web presence

A website should be a focal point of any organisation’s communication strategy. This includes hedge funds, which have grown accustomed to operating in secrecy. Thanks to the JOBS Act, that is now showing early signs of change. We looked at Absolute Return’s 2014 rankings of the largest 100 hedge funds in the world and found that 91% of them now have websites, including 90.6% (87/96) of US-based hedge funds.[5]

Among these 87 funds, 48.3% have closed or simple splash pages[6] and 6.9% have basic or very simple pages.[7] That means a majority of US hedge funds, 55.2%, have simplistic websites that provide little more than a logo. Extending this sample size to look at hedge funds with $1-$5 billion in assets, 77.5% (141/182) of US hedge funds have websites. Again we see the majority of them, 65.2%, have simple websites. However, change is happening. In 2013, only 44 out of the 185 global hedge funds with $1-$5 billion in assets had websites (23.8%).[8] By June of 2014, an additional 39 funds launched websites for the first time, and 11 more moved from a closed site to a more open site, according to a Peppercomm survey. Although these mid-sized funds may not have as many marketing resources, they are beginning to understand the importance of a website. In addition to basic firm information and team bios, websites can also provide a controlled means to distribute content relevant to a firm’s strategy, thus helping to establish the firm as a thought leader.

Of the 87 largest US-based hedge funds with websites, 37.9% had newsroom components and 31.9% showed indications of thought leadership. Hedge funds in the $1-$5 billion range are also generating content – 23.6% have newsroom components and 15% are acting as thought leaders.

Read all about it

Media attention towards hedge funds is at record levels. We forecast “hedge fund” mentions in all media will top 100,000 articles in 2014 and will reach a record high above 35,000 mentions in top-tier financial media.[9] That’s up nearly five-fold over the last decade and holding at record levels over the past few years.

The media have always been fascinated with hedge funds. Big performance numbers, blow-ups, insider trading, big compensation, colourful characters, aggressive investment strategies and the mystique of the industry make for a potent media cocktail.

Part of this growth can be attributed to the media’s endless demand for content. But the growth is also a clear reflection of the hedge fund industry’s increasing importance and visibility. As hedge funds diversify business lines, launch more mainstream products and initiate activist programmes – and as their AUMs grow – more press follows.

“It’s massively different working with hedge funds than it was 10 years ago,” said one veteran reporter. “And I’m seeing changes in the last year – a little more open to talking with the press and a more strategic interest in engaging – though certainly that’s not across the board. Some managers continue to have zero interest in engaging with us.” But for others, the way is clear. According to one well-known firm: “Institutional investors are headline risk-sensitive, so building a strong brand is necessary to play defence. The more successful you are the more headline risk you have, so it’s important to be proactive.”

Advertising – look closer

The JOBS Act opened the door for hedge funds to advertise. Ad sales executives and the media expected a deluge. Save for Balyasny Asset Management breaking the ice in February, advertising by hedge funds one year into the JOBS Act seems like more of a trickle than deluge. But is that the whole story? A closer looks reveals that it’s asset management firms and intermediaries that advertise, much less by the hedge fund firms themselves. Recent issues of Pensions & Investments magazine, for example, contain numerous advertisements that market hedge fund – or alternative – strategies and expertise from Invesco Advisers Inc., Voya Investment Management, J.P. Morgan Asset Management, PIMCO and Manulife Asset Management.

Similarly, in the intermediary distribution channel, alternatives are showing up in advertisements, but, again, not ads from hedge fund companies themselves. Recent issues of FA Financial Advisor magazine, for instance, contain ads from Principal, Pensco and Steben specifically referencing alternatives. Editors and publishers point to a “huge increase” in interest among readers for hedge fund-linked liquid alternatives content, but expressed being “surprised by the fact that more firms have not taken advantage of the opportunity to market themselves.” One publisher is even in the process of launching a hedge fund supplement featuring sponsored profiles and commentaries – so-called native advertising – “from various firms who heretofore may have been restricted from participating.” The dramatic growth of retail-oriented liquid alternative products is behind some of this advertising and is a big factor driving change in the hedge fund communications landscape.

 

Marketing gets a seat at the table

Behind these changes in the application of marketing tactics is a new attitude toward marketing communications strategy among hedge fund executives. Recent hires in newly created communications positions at firms including Two Sigma, Pine River, Davidson Kempner, Black River and others underscore the growing importance of this function at hedge funds, and especially at larger firms. We have also directly witnessed a significant pick-up in business at Peppercomm – from hedge funds large and otherwise – implementing brand and communications programmes to help strengthen client relationships and grow new assets and markets. “The passage of the JOBS Act has created a lot more internal discussion about the firm’s brand, communications with investors, expanding the branding digitally, and related topics,” said one newly hired hedge fund communications executive, adding that engaging with target audiences via thought leadership, content and social media might help further the firm’s brand.

New environment – next steps

One year into the JOBS Act and the hedge fund communications landscape is evolving to include social media, web sites, traditional media, advertising and bigger issues like brand and visibility.

However, the JOBS Act is only a piece of a larger trend. New competitive pressures, new products like liquid alternatives, and a desire for client relationships built on more than performance numbers are pushing hedge fund executives towards greater acceptance of new and developing communications channels. In this new environment, hedge fund executives should:

Take a brand view – hedge funds need to be aware of their position in the marketplace. Every hedge fund has a brand, defined as the way that their stakeholders (investors, media, partners, etc.) view them. They should define what they stand for and take actions to define, build and support that brand.

Be strategic – hedge funds considering building a website or engaging with audiences via traditional or social media or other means need to think strategically. What are the communications goals? Who are the target audiences? How will investors react? These are all important questions to ask before exploring new communications channels.

Engage your audiences – the JOBS Act may not tell hedge funds what to do, but it does help allow them to explore new ways of communicating. For some hedge fund firms, this may mean no change at all. For others, it provides opportunities to engage current and prospective investors in strategic, controlled and impactful ways.

Thomas Walek is President, Capital Markets and Financial Services, for Peppercomm. He received The Hedge Fund Journal 2015 Award for Outstanding Contribution to Hedge Fund Media Communications. – See more at: http://www.thehedgefundjournal.com/node/10025#sthash.5DUekgXF.dpuf

 

- See more at: http://www.thehedgefundjournal.com/node/10025#sthash.5DUekgXF.dpuf

 

ROI re Hedge Fund Marketing, Social Media and Branding Best Practices

CEO Rule #5 : You Make The Brand Work. You Must Be a Virtuoso.

The JLC Group firm ‘slogan’ “We Connect the Tag Line to the Bottom Line” is intended to be an all-purpose metaphor for the role we play when working with corporate executives and leading entrepreneurs. In the parlance of one of our more well-recognized financial industry clients,  we’re a “multi-asset specialist” and we often deploy a tactical, multi-strategy approach to increasing a client’s ‘Alpha’ aka return on assets without exposing the client to uncorrectable risk.

For those less familiar with financial service industry vernacular, our practice areas include  a tight cross-section of capabilities:  marketing/communication, public relations, as well as strategic partnerships, branding tactics, advertising schemes and sales strategies. As such, in many engagements we inevitably find ourselves serving as a “CEO Consigliere.”

Our role is therefore not merely to use our creative thinking skills to leverage a snappy slogan via branding schemes that produce profits, but more important, and much like a ‘real’  Consigliere, our job is to objectively assimilate the value proposition of the enterprise and help the leadership of that concern connect the spirit of the company’s products, services and culture –i.e. the company’s assets, to help make that enterprise more profitable.

Because this writer has served stints as CEO of a public company as well as one or two private companies, (and in an earlier life, reported directly to the CEO in various other jobs),  I still find myself connected to thought leaders with similar titles, and because most engagements have The JLC Group working directly with the client firm’s CEO or CMO, we were struck by the title of recent study published in this month’s Harvard Review, “Measuring the Return on Character” and conducted by leadership consultant KRW International. Maybe it was the “Return on..” that caught my attention, but I’m glad it did. The study is a good read for any executive that aspires to innovate and profit accordingly. Or perhaps an even better read for a  leader who has lost his path to bottom line profitability. Here’s why:

To frame the KRW findings (authored by Fred Kiel), the research focuses on the personal characteristics of corporate CEOs and respective bottom line performance. Leaders were broken down into 2 simple categories,  one being “Virtuoso CEOs”— leaders frequently engaged in behaviors that reveal strong character—for instance, standing up for what’s right, expressing concern for the common good, letting go of mistakes (their own and others’), and showing empathy. And, there are “Self-focused CEOs”—warping the truth for personal gain and caring mostly about themselves and their own financial security, no matter the cost to others.

As expertly underscored in the above recent-noted study, researchers found that CEOs whose employees gave them high marks for character had an average return on assets of 9.35% over a two-year period. That’s nearly five times as much as what those with low character ratings had; their ROA averaged only 1.93%.

In addition to outperforming the self-focused CEOs on financial metrics, the virtuosos received higher employee ratings for vision and strategy, focus, accountability, and executive team character.

When asked to rate themselves on the four moral principles, the self-focused CEOs gave themselves much higher marks than their employees did. (The CEOs who got high ratings from employees actually gave themselves slightly lower scores—a sign of their humility and further evidence of strong character.) The take away: Leaders can increase their self-awareness through objective feedback from the people they live and work with. But they have to be receptive to that feedback, and those with the biggest character deficiencies tend to be in denial.

How can such leaders get past their denial and overcome their character deficits? Seeking guidance from trusted mentors and advisers helps a great deal.

That said, according to the article, character isn’t just something you’re born with. You can cultivate it and continue to hone it as you lead, act, and decide. The people who work for you will benefit from the tone you set. And now there’s evidence that your company will too. Read the entire story via this month’s Harvard Review,

Learn more about KRW’s findings in Return on Character, by Fred Kiel (Harvard Business Review Press, 2015).

CEO Rule #5 : You Make The Brand Work. You Must Be a Virtuoso.

Branding 201: Hedge Fund Marketers Now Mind What They Call Themselves

When politics and perception intersect, companies operating across various industries and disciplines often find themselves facing an “image issue.” Personnel Managers have become Human Resources and Human Capital Executives, Stockbrokers have since labeled themselves “Financial Advisors” and the list goes on and on. In the financial services space, labels are changing almost as quickly as traders change their fashion-focused striped socks.

As noted in March 26 WSJ column by Rob Copeland “What’s In A Name? Funds Hedge”, there is a burgeoning trend on the part of so-called ‘hedge funds’ to recast themselves in a manner that distances themselves from the ubiquitous phrase that has more negative connotations than not, as best evidenced by Copeland’s opening line: “One of the keys to running a hedge fund is learning how to say you don’t.”

Because brand recognition in the hedge fund industry is more often driven by positioning vs. reported trading positions and related returns, and because many in this highly-competitive industry are continuously competing for investment assets to manage, its no surprise that some of the smarter marketers among this crowd are going to great lengths to stifle the swagger image and in particular, the sexy phrase “hedge fund.” Instead, other terms are being introduced that more easily pass muster with asset allocators such as public and corporate pension funds, endowments, and Family Offices; folks who want better than average returns, but, as best evidenced by CalPRS, the world’s largest public plan sponsor, have down-graded allocations to the ‘hedge fund category.’

The takeaway is that this $3trillion industry (as measured by assets under management) with more than 15,000 ‘managers’ is undergoing a rebranding phase. To those who embrace the notion that “Perception is Reality”, based on our own branding and positioning guidance and related financial industry marketing experience here at The JLC Group, we’d opine that It’s All About Presentation; appealing to the sensibilities of your targeted audience is the key element to framing your value proposition. Within the context of an industry in which there are more than 15,000 direct service providers catering to politically-sensitive fiduciaries, distinguishing what sets you apart is crucial. How you label yourself is, per Copeland’s observations, evermore critical.

Sidebar note: A perfect illustration of nuance-sensitive name convention from a hedge fund industry service provider is coincidentally a JLC Group client, Rareview Macro LLC. Among other value-adds, the firm publishes a daily, subscription-based investment newsletter focusing on global macroeconomic insight and investment strategies. The client, “Rareview Macro” positions itself (appropriately when taking into account complementary services) as “global macro think tank”, and the company’s name, “Rareview,” coupled with the banner of its daily commentary “Sight Beyond Sight” is, in our humble opinion, metaphorical magic.

As Copeland continues in his piece:

“Grappling with years of uneven performance, image problems and deep-pocketed clients who have publicly distanced themselves from the industry, hedge-fund managers are taking pains to avoid the moniker….

Baupost Group LLC, Och-Ziff Capital Management Group LLC and Pershing Square Capital Management LP are among the industry stalwarts looking to change the script. In communication with clients and public filings, they have ditched the term “hedge fund” in favor of catchall descriptors such as “alternative asset manager,” “investment holding company” and “private partnership.”

The entire WSJ column can be viewed by clicking on this link.

Branding 201: Hedge Fund Marketers Now Mind What They Call Themselves

Brand Awareness 201: Sight, Sound and Motion Sells. Corporate Sizzle Reels

Brand burnishing is about creating ‘sizzle’. If you don’t already know that, you’re about to be run over the bus that your competitors are sitting in. For New York City-based firms, your choices for corporate videographer services are nearly endless. but your choices for truly best-in-class [i.e. those who are uniquely intuitive and can translate your value proposition in a manner that resonates with your audience as well as your marketing budget] are arguably limited.

Connecting the Tag Line to the Bottom Line requires a combination of strategies that complement each other, and corporate video ‘sizzle reels’ are often the tools that tie all of your marketing/communication and branding schemes together. When clients of The JLC Group come to us for a solution, we often enlist Simba Productions. Below is their sizzle reel with illustrative examples of clients that include some of the smartest brands across multiple industries and practice areas.

Simba Productions Corporate Reel from Simba Productions on Vimeo.

Brand Awareness 201: Sight, Sound and Motion Sells. Corporate Sizzle Reels

Corporate Communications Best Practice: Rumor Management

Most folks figure that Corporate Communications is the practice area focused on ubiquitous tasks such as press releases, IR memos, the occasional crisis management event or framing a value proposition. That said, we submit that most folks are often misguided; in today’s social-centric ecosystem, rumors are necessarily a corporate communication Achilles heel, as unfounded jibber jabber is fast becoming the leading source of distraction for corporate managers, simply because they are so easily propagated. Whether confined to internal dialogue or spreading to customers, clients and/or constituents, if not handled properly, rumors can evolve to an Ebola-like ruination of corporate morale and critical business relationships. And when that happens, all bets are off.

Some “experts” contend that rumor control falls under the domain of ‘crisis management’, others argue that Rumor Management is a practice area in and of itself. In the spirit of JLC Group’s focus on guiding corporate executives in the course of their confronting and overcoming challenges, in many cases we encourage clients who ‘can’t see the forest for the trees’ to engage experts who are objective and proven to provide true thought leadership skills. With that, we’re happy to share the following courtesy of LeadershipIQ’s Mark Murphy, one of the most highly experienced experts in the field of leadership training.

Communication Strategies for Controlling Your Company’s Rumor Mill

When we hear company rumors that are dead wrong, we reflexively correct those rumors. It’s a natural response, but it’s wrong.

Let’s imagine that we get word of employees spreading rumors that our company is about to layoff 10% of the workforce. And let’s also imagine that we know those rumors are patently false. We’re probably going to convene a town hall meeting, or send a memo, and insist “The rumor about layoffs is false! We’re not doing layoffs! Stop spreading rumors about layoffs!”

Ironically, that earnest refutation only cements the rumor about layoffs in many employees’ minds. Here’s why:

First, people tend to evaluate information in a biased way; specifically, they absorb information that reinforces their existing views or values. So, if someone is inclined to believe that companies don’t care about employees, will conduct layoffs, sell the company, etc., they’re much more likely to embrace the rumor of impending layoffs.

Second, people will often harden their original views when presented with unwelcome information. This is called the “Backfire Effect.” If someone already believes that companies can’t be trusted when they say ‘we’re not doing layoffs’ and then the CEO challenges those beliefs (by saying ‘we’re not doing layoffs’) they’re likely to believe in impending layoffs even more strongly!

Now, lest you think all hope is lost, there are scientifically-proven ways to debunk false rumors.

For corporate execs who are focused on best practices within the context of communication strategies, The JLC Group suggests that you check out Mark Murphy’s upcoming webinar called COMMUNICATION STRATEGIES FOR CONTROLLING YOUR COMPANY’S RUMOR MILL.

Learn how to use the “basic law of rumor” that says the strength of a rumor is driven by how much your employees care about the issue multiplied by the ambiguity of the evidence for the rumor

 

Corporate Communications Best Practice: Rumor Management

Lesson Learned: Morgan Stanley Should Keep To Finance, Not Comedy

Brand marketers can learn a lot from Morgan Stanley’s epic mistake that was revealed earlier this week thanks to InvestmentNews.

The country’s largest wealth management firm created a parody to the “Hunger Games: Catching Fire” movie, with their own 10-minute movie, “Margin Games: Manager on Fire,” which they planned on showing during their branch managers meeting in February of 2014.

The parody, which can be viewed here, has sparked some outrage, an it is completely understandable. The parody reflects a cutthroat culture among wirehouse managers, pinning branch managers against each other.

InvestmentNews points out that in every joke, there is a grain of truth. In the parody, this couldn’t be more true. Per InvestmentNews, Some current and former Morgan Stanley executives who asked not to be identified said the fact that a video was even made that joked about people who were losing their jobs shows the detachment of executives from other employees. In fact, two months after the managers’ meeting, the firm began a reorganization. The firm cut the number of regions to eight from 12 and reduced the divisions from three to two. One of the divisional directors who was featured in the video, for example, left the firm after his position was eliminated. Four regional managers were moved to different roles.

There were also jokes that bordered on racial stereotypes including, having an Asian woman appear as the expert in martial arts who pulls knitting needles from her hair and throws them at a dartboard.

It is understandable why the firm decided to pull the video and hoped to have it locked away, never to be seen. Now that it has been found and seen by millions it is a lesson to be learned not just by Morgan Stanley but all brand marketers.

They say pictures are worth a thousand words, but videos are worth at least double that. As it is clear from Morgan Stanley’s mistake, brand marketers, especially those in regulated industries, need to compliant and sensible, not silly. So to all you brand marketers still considering silly ideas, “may the odds be ever in your favor.”

Lesson Learned: Morgan Stanley Should Keep To Finance, Not Comedy

#BrandMarketers and #CMOs take note: Companies using #Bae to Reach Millennials aren’t #sofleek

Companies like Taco Bell, Jimmy John’s, and IHOP have started using new tactics on Twitter to get in touch with the younger generations of customers. Is your company considering following into the same direction? Don’t.

Taco Bell, IHOP, and Jimmy John’s among others have been taking to social media using words that “the kids are using these days” like “bae”, “bruh”, and “fleek”.  Although companies believe that using these slang words are attracting a the millennial clients to your company, in reality it doesn’t.  In fact, Entrepreneur.com recommend that companies don’t try to “act hip” because millennials simply find it assuming and look right through the tactic. The President of Dorm Co., a company directed at the millennial generation, said “ college students are very quick to sniffing out a phony.” A new Twitter account, @BrandsSayingBae aims at calling out these companies and making fun of them. Although the saying goes, any press is good press; but a Twitter account making fun of your company definitely is not good.

There are much better alternatives to reach the millennial generation then trying to “talk like the kids these days”. For example, Entrepreneur.com several suggestions a couple include the following. First, get to the point fast, millennials lead busy lives and don’t enjoy messages that don’t have a clear point. Campaigns can be witty, sarcastic, and creative but should be concise as well. Second, win over the parents. Most millennials have college debt and are on a tight budget, by targeting the millennials’ and their parents, you max out your client base. Other sources suggest that companies should highlight the companies’ philanthropy. Not only does it appeal to all generations but the millennial generation is becoming known for their generosity and philanthropy, and appreciates businesses that are as well.

Most importantly, be personable. Not in a cheesy, hip way, but in a sincere way. Companies like Old Spice and Dollar Shave Club have especially done a good job connecting with millennials and building a deeper relationship because of the way they connect on a personal level. A simple reply or retweet to a user enhances that relationship so much more.   Your company will seem so much  more #fleek.

#BrandMarketers and #CMOs take note: Companies using #Bae to Reach Millennials aren’t #sofleek

Hedge Fund Marketers Bid On to Social Media Tactics For Brand Awareness

When it comes to branding, social media tactics are integral to leveraging a business strategy. When it comes to leverage, the hedge fund industry at large prides itself on disciplined use of strategies and risk management tools to enhance returns for investors. When it comes to brand awareness and leveraging social media tools to enhance their own brand recognition, most hedge funds (as well as other financial industry members) have remained cautious, simply because financial industry regulators and respective compliance officers are still unclear as to rules of the road.

Those who have spent more than 15 minutes in and around the world of finance (as this writer has) might find this state of affairs ironic when considering that many hedge funds (including the most-respected) are the same folks pouring billions into social media-centric start-ups at valuations that jump off the page, notwithstanding most of these companies are barely out of the start-up gate and are still entrenched in the no-profit stage.

But, when it comes to hedge fund industry brand strategies, it is clear that the social media tide is turning. As noted in a JLC Group December 23 post, there is an unmistakable trend change taking place. We know this first hand consequent to engagements that our firm has been enlisted for by financial industry firms, including initiatives on behalf of a hedge fund industry service provider (who has 1000+ leading finance industry professionals following his Twitter feed) and who was recently nominated as a candidate for Institutional Investor’s 2015 Hedge Fund Industry “Rising Star”award.

The increasing use of social media ‘story’ seems to be resonating, as evidenced by yesterday’s ‘main stream media’ article by financial industry outlet “Investment News.” Because we were so inspired that an industry publication is advancing discussion of this trend, we decided to extract elements from their article “Hedge fund managers testing the social media waters…Lifted advertising ban and pressure from liquid alts drive secretive managers into the open..”

Here’s the extract (link to the full story is below):

Hedge funds, long known for restricting investor access to complex and secretive strategies, are ever so slowly coming out of the shadows and embracing social media.

It’s still a far cry from your favorite celebrities tweeting out what they had for breakfast, but it shows that the alternative investing universe is starting to tap into the Internet for basic marketing and communication purposes.

“If you go to hedge fund conferences now, you’ll see people tweeting out the information, which is something that would have been unheard of a few years ago,” said Thomas Walek, president of capital markets and financial services at Peppercomm, a public relations and market research firm.

According to a study released earlier this week from Peppercomm, 91% of the 100 largest global hedge funds now have websites, a concept that was virtually unheard of just a few years ago.

In terms of proactive social media activity, the study found that 66% of hedge funds have LinkedIn accounts, with an average of 2,300 online connections.

Twitter, which is considered to be more social than LinkedIn, has been embraced by about 10% of hedge funds, the study found. Those hedge funds average 15,000 followers each.

The primary tipping point for the hedge fund industry, according to Mr. Walek, has been the JOBS Act, which went into effect in September 2013 and lifted many of the marketing and advertising restrictions on private investment products.

To continue reading, please visit InvestmentNews.com

 

Hedge Fund Marketers Bid On to Social Media Tactics For Brand Awareness

Best Practice Tip For Internal Corporate Communication-CEO Email Guide

Executive leadership within the context of CEO best practices and approaches that are intended keep employees fully-informed as to on-going outbound initiatives (and perhaps strategies still in the pipeline and planning stages) is obviously the subject of countless articles, white papers, books and pontification from tens of dozens corporate leadership genies.

For those who embrace the notion of full-transparency, leading experts offer a menu of strategies and mediums that lead to higher employee morale, and in turn, contributions from employees that can prove integral to the decision-making and project implementation process.. From town-hall meetings to use of Twitter (for employees only and with safeguards that make those CEO tweets non-retweetable!), the topic of internal corporate email is typically the top medium that CEOs are most prone to deploy.

Putting aside for a moment the calamity that resulted from the hacking of Sony’s corporate email platform, one can’t emphasize enough the need on the part of employees to be connected and informed, the communication culture is arguably driven directly from the c-suite cubicle of any company’s Chief Executive office.

With that in mind, we noticed a compelling comment expressed by NewBrand Analytics CEO Kristin Muhlner, who was profiled in the Jan 18 edition of the New York Times Business section.  Mulhner’s approach is simple and straight forward:

“..I’ve started sending out an email once a week called ‘Where’s Waldo?’  The email is just to say where people are, such as who [company] our VP of sales is meeting with this week, as well as provide updates on other initiatives. Its amazing the reaction that it [email update] gets from people, because they feel like ‘wow’, cool stuff’s happening, and now I know why he’s not responding to my email today. It helps.”

If not the best way that the NYT reporter could have framed the insight from Muhlner, the point should be evident: transparency, whether in form of email or other communication is critical to leadership best practices, and the culture of communication should be appropriate,  well-defined and consistent.

 

Best Practice Tip For Internal Corporate Communication-CEO Email Guide