We can sense it, out there in the urban and suburban jungles: the clients are restless.
Ignore the early murmurings at your peril. Traditionally, the financial advisory business has been a model of stability, with annual turnover rates of only 3%, unmatched by any other money-related businesses. But the times are a’ changing.
Customers are under pressure these days. Some of the stress comes from natural sources, like aging (although the notion itself is changing), while the technological march and business evolution are aggressively driving them this way and that – well, we’re the first ones who should welcome dynamism.
Insiders see three sources of tension undermining stable adviser/client relationships. First, the attack of the robots: why should they talk to you if they can get the advice they need online with little in the way of fees or commissions? There’s plenty of reasons why humans trump technology, but there’s no denying the attractiveness of these persistent e-based temptations.
Older clients use to be easy: they wanted a safe, stable retirement. Today, they want more: they’re slated to live longer and healthier, so adventure, satisfaction and meaning are matters of concern. The robots might find this hard to digest – good news for us. But out here among the humans, you’ll need to adopt a sensitivity and understanding of clients that your grandfather (CPA) never considered, are probably never needed.
Meanwhile, industry competition is jumping, as advisories leverage technology and new thinking to provide individualized investment options for clients. They’ll poach; they’ll steal; they’ll wheedle your clients away. We suggest you do likewise, but it won’t be a matter of simply reading the new rules: you’ll need to learn how to write up your own.
That’s the new brief: go after the clients hard, even the ones you already hold. Anticipate their future needs – there’s even software available that can track customers online and tell you things they neglected to mention (kids graduating; spouses separating; promotion receiving). The advisor who serves, wins.
For more information, please read:
What Happens To Your Business When Clients Decide ‘The Thrill is Gone?’ | Financial Advisor