While incremental revenue may be appealing (especially for smaller advisors), the discipline in sticking to a target is key to scale in this market. This step is an essential precursor to proactively affecting client experience.

2. A Touch-Point Strategy Based on Relevance

For some time now, leading firms have instituted client touch-point programs designed to capitalize on the loyalty elicited by an appropriate number and type of client communications. Traditional programs have recommended anywhere from 20 to 26 touch points per year, with the following guidelines: four quarterly performance reviews; 12 standardized e-communications such as those provided by an e-newsletter program; and the remainder in a combination of events, seminars for loyalty and cross-sell, and timely communications in response to life or financial events.

In principle a touch-point strategy is a sound way to stay front and center with clients. A likely evolution in these programs will include a far greater degree of advisor empowerment in terms of content selection, authorship and distribution-including via social media channels, which are areas that naturally require more spontaneity and authenticity.

Of course, these are also areas traditionally avoided by those who see them as a potential minefield for compliance. Affiliated advisors will often feel more encumbered in this regard, but conversely will benefit from marketing programs-including centrally produced intellectual capital and resources-more formalized than those available to independent advisors.

3. A Service Model Based on Genuine Value

One large change in the way clients expect to be treated has manifested in the shift from aspirational goal-setting to talking realistically to clients about risk and reward. Clients today demand to understand the trade-offs and risks inherent in their financial strategy.

This means greater reliance on financial planning, but also requires a change in an advisor's bedside manner. Clients want to understand the relevance of the product being sold and how it matches their circumstances. Advisors who adopt a clear, transparent way of positioning products and services in light of a client's individual financial picture (and detail the potential risks) will have the greatest success in establishing trust.

Certain firms have gone so far as to let clients see the same performance reporting platform that the advisor uses to monitor the client's portfolio. Complete transparency into holdings, of course, adds the problem of clients overreacting to their holdings' daily value fluctuations. While this may necessitate more client hand-holding on the part of advisors, such joint involvement is also key to trust and client intimacy.

Of course, there is no simple off-the-shelf marketing tool that will instantly adapt advisor communications to the new client expectations. Advisors looking to succeed in this new paradigm shift are the ones who can learn to let go of the old way of doing things and reorient their practices to bring clients what they want: a more engaged, genuine and relevant conversation about the things that matter most to them.

Dan Slivjanovski is executive vice president of HNW Inc., an integrated marketing services firm, catering to premier financial services institutions seeking to acquire, retain and grow share of affluent clients.

 

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