The financial advisory sector relies heavily on personal contacts. According to research by Deloitte, seventy-five percent of investors place a premium on having a personal connection with their investment advisor. That’s why everyone in the industry, from brick-and-mortar brokerages to cutting-edge robot advisors, is working hard to keep the human element alive. Although digital automation is becoming increasingly popular for streamlining business processes, human interaction is still of fundamental importance.
That’s why it’s important for banks to tailor their digital offerings to the specific needs of their wealth management customers and prospects. Consumers have grown accustomed to obtaining tailored online experiences from their preferred brands, and investors expect no less. Customers have come to demand the same individualized attention from the companies they hire.
Both investors and financial institutions can profit from tailoring their services to individual clients. Customers are better able to grasp their investing alternatives and feel confident in their choices when they receive content that is specific to their requirements and financial situations. It’s only natural for clients to have faith in wealth advisors who show interest in issues unique to them, such as estate, retirement, or education planning.
In contrast, “hidden defection,” as coined by Bain & Company, refers to the phenomenon wherein clients migrate to competitors in order to obtain high-margin items like loans, investments, and credit cards when banks and advisors fail to provide these services. To make matters worse, even if they don’t quit, investors will just look elsewhere to make their investments and make their financial product purchases. Direct, individualized offers attract many defecting clients. However, over 80% of clients questioned by Bain indicated they would have bought from their major financial institutions if they had made comparable offers.
It’s obvious that by enhancing their digital offerings, banks can keep existing customers and possibly even attract new ones. How then should banks modify their approaches to advertising in order to put an emphasis on individualizing services and fostering relationships with their clientele?
1. Adopt a method of social selling
Whether or not financial advisors like it, their online presence has an impact on how potential clients see them. Half of all investors report being influenced in their choice of the financial advisor by their online presence. Further, Financial Advisor reports that 33% of respondents to a Hartford Funds poll said they looked for financial guidance online. Financial advisors might benefit from using social media to connect with and gain the trust of potential clients. Regular proof of value increases the likelihood that a consumer will remember a business when the time comes to make a purchase. Effective social selling depends on solid digital profiles.
The fundamental concepts of social selling are the same as those of traditional face-to-face selling: getting to know the consumer, showing off your expertise, teaching them something new, and ultimately helping them out. In this case, everything is completed in an online setting. Financial advisers are given the option to provide more value to their clients through digital channels through the use of social selling. In the end, salespeople who share information frequently are 45% more likely to hit their goals. That’s why it’s a good investment of time for wealth advisors to build up their online profiles and network.
2. Connect with clients through their favorite mediums
There is a source from which investors gather data. It is critical to learn the origin of this data and to connect with investors where they are.
The next step is for financial advisors to establish themselves on those platforms and start interacting with potential clients in a natural way. Why? According to a survey conducted by Hartford Funds, 20% of investors said that a wealth advisor’s social media presence was the single most important element in their selection.
This might be the Twitter and Facebook feeds of more established news outlets for older investors. Newer platforms, like TikTok, may be more appealing to a younger audience of potential investors. A recent survey conducted by Vericast found that more than one-third of Gen Z investors in the United States get financial advice from TikTok, whereas only 24% of investors in this age group get advice from financial professionals. That means financial advisors have a great chance of attracting the business of young investors by targeting them in these ways. Financial advisors can’t afford to have their clients feel like they’re being sold to, so they need to make every interaction genuine and fun.
3. Build unified consumer experiences
Social media posts are helpful, but banks that want to boost their return on investment should instead focus on developing more comprehensive digital journeys. Connected investor journeys succeed when there are no digital dead ends and clear next actions are always provided.
At the outset of the process, wealth advisors must engage in a two-way conversation with their preexisting online audiences. The next step is for them to use paid social media advertising to contact investors who are likely to have similar interests as their present customers or potential new ones.
Financial advisers can increase their lead-generation efforts by directing social media followers to content-driven landing pages that offer free guides in exchange for contact details. The value must be demonstrated at every stage, from the initial consultation through the final distribution of assets.
Financial institutions can increase their revenue, customer retention, and customer satisfaction by adopting customer personalization in their marketing tactics. First, we need to equip wealth advisers with the tools they need to provide individualized training and promotions. Advisors can build trust with their clients, increase their number of leads, and lessen the likelihood of “hidden defection” if given the tools to do so.