“You can’t do an ad hoc personalized message with every client every day,” said Brown. “But you can know enough about clients to say that you have 10 of them interested in understanding NetFlix or cryptocurrencies or retail sector firms, and you can send them targeted communications about those things. Those people can end up feeling personalized even if the message is a copy-paste of some perspectives on NetFlix or cryptocurrencies. Personalization like that can be replicable, scalable and deliverable to multiple clients.”
Communication channel was also key for YChart’s survey respondents – 79% said they would like for their advisors communicate with them via e-mail, 29% would welcome text messages, 26% would like newsletters, and another 26% said they wanted updates in face-to-face meetings.
There is also demand from advisory clients for information on topics outside their own portfolio. For example, two-thirds of respondents wanted to receive market-related news, saving and planning tips from their advisros via e-mail. Fewer respondents wanted such updates via phone calls and text messages, but only 2% of respondents said that they weren’t at all interested in hearing their advisor’s perspectives.
“Clients want multi-modl, multi-channel communications,” said Brown, who pointed to Ritholtz Wealth Management as an example of effective market-related communications. “Their strategy is to build social media relationships with oodles of people so that people will feel like they know them. That will lead to people trusting Ritholtz with their nest egg, and the firm won’t do anything groundbreaking, they use passive strategies – but they’re building multi-million dollar relationships through a social media and multimedia forum.”
The study’s authors concluded with some tips for advisors to improve their client communications:
- Commit to a cadence – create a rhythm for client communications where blog posts, videos, newsletters and personalized e-mails are generated regularly and at predictable time intervals.
- Create new touchpoints and opportunities – the status quo of client communications is not ideal for most clients, so advisors should increase opportunities to connect to keep themselves, their services and their value at the top of their clients’ minds.
- Segment your clientele – some high-value clients will demand more high-touch services and personalized attention, but make sure lower-tiered clients do not slip under the radar.
- Hone in on understanding clients and their goals – understanding and empathizing with client goals and wishes is the foundation of effective engagement.
For its research, YCharts sponsored a survey of 666 U.S. households engaging the services of a financial advisor during fall 2019.