Hortz: Can you compare and contrast client behavioral discovery using outward behavioral analysis versus using some form of psychometric testing?
Floyd: It’s important to note that our approach does include a form of psychometric testing, in addition to outward behavioral analysis. We believe this gives us the best of both worlds. While an external data set is good, it may not always pick up the nuance necessary for true communication accuracy, for the reasons described earlier. That’s why we enhance it with psychometric testing in the form of our behavioral risk assessment.
It’s also important to note that we also go above and beyond outward behavioral analysis or psychometric testing by giving the advisor the ability to influence the persona algorithm. We allow the advisor to add their own non-digital touch points as well as information accumulated over years of relationship-building with clients, some of whom may not have a digital footprint for us to study. We believe this only enhances the data set.
Hortz: Once you isolate a client’s persona, how do you translate that into an effective communication strategy?
Floyd: We start with the belief that each person responds to communications based on their unique behaviors, biases and communication preferences. The persona types are the basis of most Finworx communication.
We’ve spent a tremendous amount of time developing predefined client journeys for each persona, and we have the ability to track engagement with that journey in order to do two things: 1) Personalize the journey for each specific client in real time. 2) Improve future iterations of the predefined journey for clients overall.
Hortz: How does a financial advisor use this in-depth behavioral knowledge to drive improved client outcomes?
Floyd: Well, there are a few factors at play here. First, the clients’ outcomes largely depend on their ability to accept coaching and advice from their advisors. This means the advisor is playing a trust role—this is a sentiment we hear echoed by advisors all the time. They want to be the trusted advisor. They want to be the first phone call their clients make when they’re facing a financial decision. To build that deeper trust relationship, we keep the advisor in front of their clients with fresh, relevant communications. We want to give the client plenty of opportunities to get in touch with their advisor, thereby building trust.
At the same time, we can use the content itself as an educational tool. For example, if you have a client persona type who tends to be anxious and prefers big picture information, you’d never send them an in-depth market analysis. But if you have a highly analytical client who likes to stay highly informed, you might send them something more in-depth to show them that you’re paying attention to what’s going on and not insulting their intelligence by sugarcoating the facts. In other words, communications are a constant education and reinforcement of maintaining the proper risk level in the clients’ portfolios.
Hortz: Why do you also characterize your technology and service as “digital marketing with a safety net” and a “comprehensive technology solution”?