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If there was a Phrase of the Year Award for our profession, “client experience” would win in a runaway.
And for good reason. As competition will increase, it is vitally important that financial advisory firms use every tool at their disposal to differentiate themselves from other money management providers. Those tools include the ability to provide a superior client experience.
Unfortunately, based on my conversations with practitioners across our profession, there is a dissonance between our desire to provide a great client experience and our understanding of what that constitutes. More than once, during discussions of the client experience, I wanted to say to my colleagues, “I’m sorry, but you keep using that phrase. I do not think it means what you think it means.”
Creating a superlative client experience requires more than a robust client portal, easy-to-understand monthly statements, and an annual face-to-face meeting. It requires an authentic, feelings-based connection with the client. We must come to deeply know and care about every client. When we make that effort to reach out, the client will reach back.
The result will be a bond that can’t be broken by promises of better returns or lower fees.
Building this type of enduring relationship requires a significant investment in time and effort. That’s because we need to make time to talk with our clients in-depth instead of emailing them with generic updates and check-ins. That will be a tough transition for some advisors. Based on a recent study by Cerulli Associates, financial advisors are more than twice as likely to contact a client via email as compared to picking up the phone.
We need to flip that stat. According to Cerulli’s data, the average senior advisor serves 94 households. It will not be a crushing task for an advisor to double the number of phone calls or Zoom meetings to match the number of emails that are sent.
Of course, email has an important role to play in our work. But hitting “send” has its limits. Emailing means we are talking at the client – sharing what we want them to know. A phone call, on the other hand, allows for a back-and-forth. It gives the client an opportunity to share what’s on her mind and offers the advisor a chance to learn more about the client’s life, dreams, hopes and fears. These types of conversations are crucial to providing the best client experience and benefitting from the resulting bond.
One of the things that made “The Office” so great was the subtle layers beneath the jokes. Watch closely, and you will learn that while Michael Scott is a bumbling, inappropriate manager, he is also a terrific salesman. One reason: He gets to know everything about his clients. Indeed, Michael knows so much about his clients that he must color code his notes to remind him which topics are okay to discuss and those he should not.
That system is (I hope) the only thing I share with Michael Scott.
I started documenting and tracking information about my clients and my conversations with them. Instead of segmenting my personal book by AUM or age, I look at hobbies, life events, personality traits, et cetera. This shows my clients in groups based on how they will feel about developments in the market or political arena.
I use this information and context, which is stored in my CRM, to shape timely and personalized communications with my clients. For example, when the next major golf tournament rolls around, I’ll call my golf-loving clients. We’ll dissect the tournament and chat about work, family and life before I provide my thoughts about the market and address any concerns.
This system has allowed me to scale and focus my client communications efforts. I spend more time on the phone with my clients talking with them. By understanding what drives them. I’m able to quickly review segments within my CRM to understand who needs to hear from me.
Yes, I still send emails. But in the interest of building connections and enhancing the client experience, I prefer to make quick phone calls when possible. I find these person-to-person interactions effective and efficient. During these calls, I gather even more data on my clients’ situation and mindset. We discuss everything from how they are faring in the pandemic to vacation plans and grandkids. Sometimes I follow up with news articles or other bits of information related to the topics we discussed on our call.
As a profession, we must continue to find ways to improve our firms and enhance our client relationships. My system is one easy way to get started. But we need to move beyond this. The client experience is going to drive growth and attrition. Prioritizing phone calls and video meetings over emails will help us better understand our clients and find new ways to enhance their experience. The advisors who bond with their clients will win.
Matt Reiner is a CFA, CFP®, and partner at Capital Investment Advisors, a $2.8+ Billion RIA in Atlanta. Reiner is also CEO of Wela Strategies, a sister company to Capital Investment Advisors, and is the founder and CEO of Benjamin™. Benjamin is an AI technology created by Reiner after seeing the gaps in technology used in his own firm. Reiner’s true passion is using his vast experience to coach other advisors across the country, helping them evaluate their firms’ practices and find the best strategies for future success. To reach Matt Reiner, visit www.MattReiner.com.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.