Advice models are evolving at a rapid pace, as are client expectations right along with them. Amid these dramatic shifts, advisors are expanding their focus from solely managing clients’ investments to include a more holistic planning approach. The hard truth is that while almost every business will say its customers come first, there’s a big difference between making that statement and creating a truly customer-centric firm.
Advisors who do it right plant their flags during critical points in their clients’ financial lives. This could be anything from the birth of a child, to planning for education expenses, saving for retirement or buying a dream home. As part of this approach, advisors should adjust their service model to provide the kind of experiences that make clients feel special.
Think about the last time you had a positive customer service experience. What made you feel good about dealing with that company? You most likely were impressed by how quickly they served you, how easy they were to work with, or how they treated you with special and personalized care. While it’s easy to get caught up in the day-to-day of running your practice, channeling how your clients will view their experience is critical. According to Cerulli Associates, firms executing on client-centric strategies tend to build greater trust among clients, lower attrition rates, and can more easily move upmarket.
However, only 30 percent of advisors who responded to the Cerulli survey said they would characterize their firm as client-centric by going “above and beyond to make clients feel special.” Does this mean advisors are ignoring their clients? Probably not, but they may be missing out on opportunities to better serve them.
There’s no doubt we’ve seen a seismic shift in the wealth management industry—away from just managing assets to looking at each client’s financial situation at a more personal level. By truly listening to what your clients need—their challenges, concerns and triumphs—and tailoring your services to them, you can more thoroughly differentiate your practice from your competitors.
Using Technology To Become More Client-Centric
While there are benefits to becoming a more client-centric advisory firm, there are also challenges to adopting this enhanced level of service. This is where technology can be a game changer for your practice.
Here are four practical ways to become more client-centric by leveraging technology:
1. Offer more personalized service through client segmentation. Consider using an advanced customer relationship management (CRM) system to help segment clients and serve them in a more personalized way. For example, a 35-year-old single male will probably have very different financial goals than a 65-year-old female retiree. By tailoring your message and your offerings, you show clients that you are focused on their goals and challenges individually—not giving the same advice full cloth.
In addition, according to a recent Salesforce study, 47 percent of people said they are open to receiving personalized communications from their advisors, helping them achieve their unique financial goals. An advanced CRM system typically includes marketing automation tools that enable customized communication to clients. For example, you can use the CRM to schedule and automatically deliver personalized blogs, e-newsletters, podcasts and social media posts. You can also leverage your CRM to recognize clients’ key life events and celebrate their milestones, like a work anniversary or birth of a child. This can go a long way toward building client loyalty in a world where personal touches are increasingly rare.