Lifetime Client Value Changes the Rules for RIA Marketing

Lifetime client value (LCV) in RIA marketing is the total revenue a firm can expect from a client over the entire course of the relationship. For most advisory firms, that means decades. When you compare that to the cost of acquiring one client, the math shows RIAs have far more flexibility to invest in marketing than many other industries.

We explore this in the all-new second season of Marketing Matchup (see below or click here to watch the full episode!). Justin Barish of Lido Advisors and Mindy Mackey of Carnegie Investment Counsel shared why it’s worth putting the pedal to the metal with marketing to win that lifetime client value… and why it can’t happen overnight.

What makes lifetime client value different for RIAs?

• Client relationships often last 20 to 30 years or more.
• Retention rates are higher than in many consumer industries.
• The revenue per client is substantial compared to most purchase categories.

“I can make a big investment in a campaign, and as long as I’m getting paid back in the lifetime of that client, it’s a huge advantage,” Justin said.

This means that RIAs don’t need to see a return in weeks or months. Marketing can be measured in years, which makes bigger, more strategic bets possible.

How should RIAs think about client acquisition cost?

The key is comparing client acquisition cost to lifetime client value (LCV).

• If an RIA spends $10,000 to acquire a client but that client generates $250,000 in revenue over time, the economics make sense.
• Digital campaigns, video production, or advanced CRM systems may look costly up front, but the long-term payback is far higher than most industries enjoy.

This perspective allows firms to budget with more confidence and avoid underspending. But in order to actually win over those prospects, RIAs have to differentiate. Mindy encourages RIAs to look at the experience from the prospect’s point of view. A lot of firms have similar websites, similar branding and make similar promises.

“In a sea of sameness, how do you differentiate? … We have to earn [the prospect’s] trust,” Mindy said.

Standing out in wealth management marketing is less about gimmicks and more about credibility. Trust becomes the hook, but the kind of prospects who generate real growth for an RIA are discerning shoppers. The client acquisition cost will probably be higher, because it takes time and repeated points of contact to build that trust over time.

Three ways RIAs can act on lifetime client value

• Budget boldly: Compare CAC to LCV and invest accordingly.

• Invest in trust: Every marketing touchpoint should reinforce reliability.
• Stand out with clarity: Clear, compliance-friendly differentiation matters in a crowded field.

Watch our entire conversation with Justin and Mindy below. Want more inspiration to help your practice stand out and grow? Check out our first season of Marketing Matchup here – every episode is packed with spontaneous and insightful conversations with some of the best minds in financial services marketing.