“There are over 6 billion text messages sent every day in the United States,” said Steve D'Angelo, VP of worldwide sales for Hearsay Systems at the 5^th Annual Hearsay Summit.

What was more of a revelation is that 50 percent of advisors admitted they are texting, said Birdia Chambers, head of social, texting and communications distribution at Prudential Advisors. However, many in the industry are doing this with little to no compliance supervision, even though the fines can be significant.

The Evolution Of Our Business

Almost 10 years ago, Steve Jobs changed our world. Today, the smartphone is an extension of who we are.

Clara Shih, CEO and founder of Hearsay, gave a keynote address with the point that we need to market like it is 2017 (not 2007). She stated, “We have witnessed the ultimate renaissance.”

We are so immersed in this new way of living, we now connect anytime, anywhere. “We have come to take it for granted,” said Shih.

She added, “When we want something, we want it right away. We want it instantly.”

Plus, 98 percent of text messages are opened. Much better than email open rates.

For these reasons and others, text messaging can be a solid tool to use with clients. The hurdle when using texts with clients is to do so with compliance approval and oversight.

A Text Message Solution

Shih made it clear that Hearsay Messages, a relatively new service of theirs, can be used for those that have to provide compliance coverage.

Caroline Feeney, president of Prudential Advisors, spoke about how they are now enabling their advisors using this tool to become more high touch.

She explained that to recruit advisors to join who will then need to work their networks, without giving them the communication tools to do so, was not a good business model.

“This is going to be an incredibly effective sales productivity tool,” stated Feeney, who is now working to roll out these capabilities beyond their pilot program.

She went on to say, “Think about it. Do you really have close relationships with people that you’re not texting?”

How It Works

By using the messaging app, it sits separately from the normal text messaging capabilities on a smart phone—that way personal text messages will not be recorded.

Chambers explained, “It needs to be a unique number that is associated with texting, or they have used the office line.”

When starting out, Prudential Advisors’ clients get a “can I send you text messages?” type of email. So far, 71 percent of their clients have opted in. If clients do not provide consent or write back “stop,” the advisors are restricted from texting them.

Chambers was excited about how text messages can allow their advisors to communicate in a quick and efficient manner. She gave a simple example of an advisor using this simple message with a client: “I’ll call you back. In a meeting.”

Shih mentioned that assistants can even text on behalf of the advisors if the advisors give them permission to do so.

Looking Ahead

The world is already very instant and very mobile. This new technology taps into those trends so advisors can text in a compliant way.

It also allows advisors to be a great asset. “You are in a people business. Your people have personality, they have a voice,” said Shih.

It is a common belief that the more advisors communicate with clients, the more loyal the clients become. While text messaging is not the sole solution, it should definitely be part of a multi-touch experience.

As data is collected, it will drive a new world of “AI” that will allow for better personalization in the future. When clients get the information they need, Shih said, “The client is benefiting.”

Mike Byrnes is a national speaker and owner of Byrnes Consulting LLC. His firm provides consulting services to help advisors become even more successful.