It’s almost 2022. How are you going to differentiate your services, increase retention and generate leads? In short: how do you plan to survive?
Apologies for the directness, but it’s a fair enough question.
You’ve read about the future of the profession about 1,000 times now. That in the new hybrid world, it’s going to be a blend of the best of the human aspect combined with the best of tech. The adviser technology will do the heavy lifting while you get to do what you do best: holistic, bespoke, life-changing financial planning.
But what does ‘heavy lifting’ mean? Is yours at the gym 24/7 or is it limping along, failing to break a sweat?
I ask this because you owe it not just to your business, but to your clients.
This week I was alerted to a quote by Bill Bachrach who said on Michael Kitces’ recent podcast: “…your prime directive is to put the client first. And when you choose to not harness 100% of the features and benefits of your tools, you’re basically putting the client second, especially if it’s your own comfort.” And it’s a stark but real truth.
If you’re currently using tools and adviser technology in your business that aren’t doing what they could be, you’re doing more than wasting money.
But perhaps it’s not clear what the potential for this technology is, and how hard you can really make it work? Afterall, this is all fairly new.
So let’s have a look
According to research by Next Wealth, most advisers are still spending over a quarter of their day on administration and another 16% on compliance, despite vastly increased technology adoption (and investment).
Why? Perhaps because what adviser technology has not yet done is streamline practice operation. Integrations often don’t work as expected, which means that manual entry, duplicate and repetitive tasks are commonplace. As a result, human error is rife.
This also means less time spent in front of clients.
It doesn’t have to be this way, there’s a lot of potential for firms of all sizes to streamline and automate their processes and improve business efficiency, while delivering a better client experience.
This can be done by automating workflows.
What do I mean? Well, let’s start with what we know. We know that marketing automations can support the lead generation process. For example, the free download on your website will more than likely be supported by an automated email sequence designed to gently push the recipient along the sales funnel.
We can apply these same principles to other operations in your business.
Think about some of your current processes such as how you respond to queries, onboard clients and carry out suitability reports. Some examples of mapped workflow processes include:
- Pre-consultation and booking workflows
- Automated annual suitability reviews
- Streamlined and fully customised factfinds
- Centralising communication records for compliance (think VoIP logs, email, portal chats etc)
- Gamification
Gamification, WTF?
Gamification is a method of using technology to do the heavy lifting on remote client interactions, but in a truly engaging and personalised way. It helps to deepen the engagement with your client, to differentiate your services and increase retention.
You’ve almost certainly experienced gamification yourself.
Only this week I received an email from my local takeaway telling me that there are a new range of prawn dumplings available. That shows you how much I love dim sum.
But it also shows how you can send your clients messages based on the data you hold on them, deepening your relationship with them or even prompting them to take specific actions.
You can do this by taking data from your back office system (perhaps even real-time open banking data) and creating a dynamic world of engaging notifications and information for clients.
For example, you can gamify ESG investing by telling them how much impact their portfolio is having on the environment and society. This could mean telling them how much renewable energy this has generated. Imagine how this brings it all to life on a day-to-day basis and motivates them to do more.
Let’s take another example: tax year end. By segmenting your clients based on their contribution status, you can prompt them to top up their ISAs.
It’s this sort of heavy lifting that will engage the clients of the future. It’s a much more segmented, personalised and tech-supported delivery model than we’ve seen before; it’s one more often seen in direct-to-consumer productised advice apps.
But it’s what really defines ‘heavy lifting’ and describes what could complement the human element of advice so well, helping you to differentiate your offering and to spend valuable time with your clients.
It will take work. But once these automations are in place, they will run themselves. And they’ll become the most important members of your team – and they won’t take loo breaks, go on holiday or get sick. They’ll allow you to do what you do best – all while putting your clients first.
Faith Liversedge is a marketing consultant. You can follow her on Twitter @FaithLiversedge
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