Advisors must break from tradition and adopt methods to provide better client experiences, partly through identifying niches in their book of business, according to a report by global research and consulting firm Cerulli Associates.

The most successful practices employ more creative client segmentation methods, primarily through the use of technology, according to the report. Nearly 60% of experience-centric practices use technology to automate client interactions, including focusing on the client’s perspective and the approach they prefer, the report said.

Cerulli researchers suggested that broker-dealers, custodians and other strategic partners of advisors can help advisors create client persona templates that extend beyond traditional segmentation.

Strategic partners should also consider how advisors may integrate this client persona data into their customer relationship management framework and workstations to make it actionable, the report added.

Advisors, the report said, often struggle with younger investors, including clients’ children and heirs. It noted that many broker-dealers already encourage advisors to form teams and integrate next-generation advisors into their practices. These next- generation advisors are often best positioned to engage next-generation clients.  

Recognizing and appreciating clients are ther strategies the report highlighted. It noted that experience-centric advisors recognize that decades of working with clients and building relationships form the backbone of their business and nurturing them requires dedicated acts of appreciation.

These practices focus on the kind, unexpected gestures that engender joy, trust, and loyalty, the report said. When planning client events, they create individualized experiences with smaller, more intimate gatherings on a more frequent basis instead of large, annual functions. Additionally, the report noted that recognition of clients’ key life events, transitions and milestones can also have a profound impact.

While round-the-clock availability is not always feasible, the report added that  extended access—especially in case of crisis or emergency—creates a sense of on-demand support.



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