Over the last seven months, the needs of investors have intensified, and the engagement model between advisors and clients has completely changed. The need to deliver empathy in the last mile of advisor-client communications is more important than ever as we all try to adjust to this new rhythm of constant change. Digital tools have stolen the show, and we’ve heard one story after another about the acceleration of digital transformation projects, but it’s not just about digitization.
For advisors to successfully support clients in today’s world, a multitude of shifts are required, such as adjusting the frequency of connection points, making sure advisors are enabled on channels that clients prefer and paying extra attention to the content and messaging mix.
The Importance Of Frequent Communications
Arguably the most critical adjustment in client engagement is the need for more touch points. The unpredictability of the current environment demands that advisors spend time with their clients, even if it’s just a quick text to check in. Connecting with investors more often and in a more proactive and human way is the best way to calm investors’ nerves. Investors are worried about their financial future, and when personal circumstances could change at any moment, they need to feel like they have an advisor who is with them.
Offering consultative advice outside of typical checkpoints, like an annual review, matters to clients. Investors want reassurance and personal advice to feel confident that their investment strategies match their goals and needs. They trust their advisor to act in their best interest, and the only way to ascertain what that is in the current climate is through frequent, proactive contact.
In fact, research shows frequent engagement drives deeper client loyalty today, influencing retention and referrals. A 2020 survey from Natixis Investments shows that 54% of advisors identified frequent client communication as a critical success factor. And when examining why clients leave an advisor, 58% cited failure to meet client expectations on communications as the reason.
Corporate Support
If we know that advisors need to increase touch points with clients to strengthen the client connection, corporate would be best served by providing the field with easy, approved access to the right communication channels, such as social media.
An advisor study from Putnam Investments found that nine of 10 advisors have seen social media change the dynamic of client relationships, in part because we are all struggling to navigate the impact of Covid-19. The survey also showed that 74% of U.S. financial advisors who used social media for business initiated new relationships or onboarded new clients that way.
The social example illustrates that the increased focus on digital tools is not solely to improve client loyalty and retention but also to help advisors find and reach new clients as well. But social media is just one example. In a world where advisors are working from home and firms need to enable their advisors to compliantly and authentically communicate with clients on channels that they prefer, texting is also key.
For example, usage data from Hearsay Relate, our compliant texting and voice solution for financial services, shows a 74% increase in texting volume from February 2020 to October 2020. Making it easy for clients to compliantly communicate with their financial advisors through any digital doorway is paramount. In a time of information overload, advisors have a great opportunity to improve their client relationships and response time by going beyond a phone call or email and breaking through on one-to-one channels like texting.
Content, Content, Content
An increase in touch points coupled with an increase in channels means a strong need for content support. Before the pandemic, a regular drip of general thought leadership content was enough to keep an audience engaged; that’s simply not the case anymore.
Also, according to the Putnam Investments survey, advisors said that the two most impactful ways corporate supports their business is by expanding the number of approved channels (48%) and providing timely, relevant content to share (55%). Investors crave more personalized content, but advisors are overwhelmed with the additional proactive outreach they need to conduct. Content support is one way corporate can help advisors deliver content at scale.
Corporate teams should be counted on to provide a broad and deep mix of relevant content to share with their clients. Content libraries should be integrated into communication channels such as social media and websites, empowering advisors to share the right content on the right channel at the right time while enabling them with tools to personalize the content prior to publishing.
While many firms view personalization as a compliance challenge, we’ve found that advisors see upwards of 40-times engagement on personalized, custom social posts (versus corporate communications), making it worth the work. I recommend that firms set a goal for advisors to customize approximately 25% of what they post or send.
When it comes to delivering financial advice under extreme circumstances, like the current pandemic, advisors should be free to think outside of the box to develop relationships with clients in this socially distanced world. At the same time, financial services is a highly regulated industry, so interactions must be compliant and communications archived. This is where advisors need corporate support, including digital tools that make compliant interaction simple, as well as approved social content that enables advisors to deliver personal guidance and support deeper client connections.
These are uncertain times to be sure, but a more adaptable, multifaceted, technology-driven approach is paramount for client and advisor success.
This article originally appeared on Forbes.
