Evolving technology, such as robo-advisors and do-it-yourself investment platforms, has made investing available to everyone, and has made it necessary for financial advisors to demonstrate value beyond investment picking. Luckily, financials advisors have the power of two-way communication; unlike technology, advisors have the ability to listen to their clients and respond by providing personalized solutions for living within their financial means.
From a recent survey of financial advisors, we found that communication between advisors and their clients is escalating, and that trend is expected to continue. In this vein, technology doesn’t need to be a threat to advisors, but rather a tool they can use to enhance their practice. Here are a few ways advisors can leverage technology to communicate more efficiently and conveniently with their clients.
1. Video Chat
Our survey found that advisors prefer having face-to face meetings with clients, but, coupled with the expectation of increased communication demands, scheduling exclusively in-person meetings may not be sustainable. Advisors should offer the option of video calls to clients, using tools like Skype or FaceTime. Having a virtual meeting can be a more convenient way for the advisor and the client to still be able to communicate face-to-face, but without all the hassle.
2. Social Media
Social media platforms, like LinkedIn, allow advisors to engage with potential clients they may otherwise not have access to, such as millennials or more geographically dispersed people. Creating long-form posts or sharing articles or relevant content on LinkedIn is a great way to have that personalized communication touch point while reaching many more people. Advisors should make sure their profile is up to date, and take some time to learn about the best ways to build their online presence.
Holding educational workshops to guide clients on issues such as aging, technology, or market updates have become an important way for advisors to differentiate themselves. While three-quarters of advisors say they do host sessions annually, they should consider hosting them as online webinars. Webinars provide all the benefits of an in-person session: having that face-to-face, and being able to answer questions, while being able to reach a wider audience. Taking it a step further, advisors could email a recording of the webinar to clients who weren’t available to attend.
While how we communicate may be changing over time, our need for it has not wavered, and is still top of mind for clients when it comes to working with their financial advisor. By including technology in their practice, advisors can more conveniently, but continually, communicate with clients in a more personalized way.