The financial planning landscape is more complex than ever. Advisors face a whirlwind of upheaval as regulators constantly debate new rules, vendors market their wide array of technological solutions, and customers ask about their fiduciary status.
This naturally means that competition is at its peak. According to McKinsey & Company, the golden era of favorable macroeconomic conditions in wealth management has ended. It is now time for financial planners and advisors to rethink their current operating models for strategic growth.
In other words, advisors need to adopt strategies that distinguish them from their counterparts. This includes delivering exceptional customer service, differentiating their offerings, and boosting visibility. With the right plan, they are well-positioned to thrive in a highly competitive financial advisory marketplace.
In this article, we will discuss five simple yet effective ways contemporary financial advisors (like yourself) can leave their competitors languishing in the dust.
Offer Proactive Advice
Given the cut-throat competition, it can be tempting to integrate sales tactics with offering client advice. However, it is crucial to know where to draw the line. Customers can sense high-pressure sales tactics from afar and will be wary of your recommendations.
You need to look for ways to assist your clients proactively. For instance – start publishing a periodic newsletter that shares key industry insights and updates with your client base. Keep in mind that the newsletter must not be used as a means of upselling. Let it simply be a medium for your clients to gain additional (useful) information.
This practice is a double-edged sword as it helps you too. The more advice you share with your clients, the more you understand what resonates with them. You can utilize what you’ve learned to tweak future approaches. Finally, do this as long as it takes to gain traction.
Leverage Tech Innovations
As published by Forbes, there is currently a quantum shift in demographics, as more and more individuals from the younger generations are showing interest in becoming investors. Naturally, these young investors are demanding digital solutions to improve their financial literacy and planning.
This makes it crucial for financial advisors to leverage technologies for financial planning. The best financial planning software will help you stay organized and track your clients’ finances. Moreover, you should be able to automate tasks like investment tracking, budget creation, etc. The software can also help you forecast future income to offer greater insights.
According to Asset-Map, you no longer need to worry about developing lengthy 75-page reports. The software’s visual reporting features will offer a frictionless experience for spotting gaps, scheduling meetings, identifying growth opportunities, and more.
As a result, you will save time and money, and your clients can fully engage with their financial journey.
Build an Emotional Bond
Even in the world of finances and business, emotions work (when used moderately and strategically). Think of it this way – all your clients will have certain goals and aspirations in life. Years or even decades from now, they would expect to build a corpus that enables them to meet those goals.
When you directly align their financial plan with those aspirations, it will make it easier for them to envision the outcome. Investors/clients want advisors to make them feel self-assured and confident.
This is only possible when they can see how their current plans draw them closer to their financial goals. So, the third way to stand out from the crowd is to emotionally connect with your clients.
Provide the Best Possible Online Experience
As mentioned earlier, most clients (especially the younger demographics) are looking for improved digital solutions for financial planning. This is why it is important to offer them the best possible online experience.
What would that look like? You can make it easier for your customers to get in touch using multiple digital means of communication. Make it possible for them to have a bird’s eye view of their balance. You can also share a library of resources they can refer to any time they need quick help.
Conduct Regular Check-Ins
Your clients have chosen you for a reason. They want to learn and plan at their own pace. This makes a no-pressure approach highly important. You do not want to gain a reputation for being pushy. Just focus on delivering quality results and a solid customer experience.
Keep in mind that amidst adopting a no-pressure approach, you must not forget your clients completely. Show that you genuinely care about them through regular check-ins. For instance – schedule a brief call once a week/month to discuss how things are going. Ask your client if they have any immediate needs or queries.
Besides calls, you can also send emails or text messages (or use a combination of communication mediums). Just do not go overboard, and this will strengthen your relationship with your clients. Besides, it may even help with lead generation, as the power of word-of-mouth cannot be underestimated!
The field of financial planning and advisory is extremely competitive. There are a myriad of firms offering similar services, and the competition demands that advisors step up their game. Your success depends on thorough market knowledge, industry experience, and a deep understanding of client aspirations.
