There is a lot of technology available for advisors, much of which serves vital functions, but the pressure of sifting through it all can be overwhelming and lead to bad decisions, Robert Sofia writes on ThinkAdvisor. Some advisors feel that sorting through technology stops them from focussing on clients, but the wrong decision can cost thousands of dollars in time and revenue, he writes.
Picking Through Technology to Find What Suits
The most technologically savvy advisors have the most scalable and profitable businesses; they use similar principles when deciding what new technology to implement, according to Sofia, a marketing technology entrepreneur and consultant and co-founder and CEO of Snappy Kraken.
To start with, advisors should focus on why they need the technology, rather than the technology itself, he writes. Advisors must ask themselves whether they actually need the particular technology, whether it will require much training, how often it will be used and whether it will actually add value to a business, according to Sofia. Advisors should set specific goals and then find technology that helps achieve them in the most affordable, effective and time-saving way, he writes. They should never invest in technology simply for the sake of it, he writes.
Furthermore, technology companies want to sell technology, Sofia writes. Advisors must remember to look past the sales pitch, and the well-run demo, to evaluate all their options, he writes. Advisors can talk to others in the field about what technology they use, as well as look for research in industry publications, according to Sofia. Moreover, advisors can look for awards, recommendations from industry thought leaders and company track records, and check for low-cost trials, he writes.
Advisors should not spend their time selecting and implementing new technology, unless it will be used by them on a daily basis, Sofia writes. Researching, vetting and implementing new technology should be left to an advisor’s staff, he writes. They will be the ones using it and allowing them to take ownership of the process will increase engagement and commitment, according to Sofia. Advisors can have staff pitch their recommendations so as to maintain some role in the selection process, but not doing it themselves frees up time to build relationships with prospects and clients, he writes.
Advisors must use technology to grow and scale their business, and not doing so can lead to irrelevancy, Sofia writes. However, it is important for them to choose carefully the technology that helps fulfill their goals, he writes.
