What differentiates
great service? Great businesses in the eyes of their customers? What
determines your success with attracting and engaging appreciative clients?
Shawn Achor[1]
tells us that “happiness” is the greatest differentiator.
Research in the
growing field of "positive psychology" indicates that when we engage
consumers with positivity and in a manner which allows them to look at the
solutions we offer (be it a product or a service), then their brains become
more engaged, creative, motivated, energetic[2]:
in other words they are more likely to engage with you and adopt the solution
you are offering (that is buy from you).
Regardless of your
views on “happiness”, engaging consumers with “happiness” and positive
psychology, the thing that you do need to pay attention to is that the way
consumers choose to do business with you and interact with you is changing.
The field of
“wealth management” “financial advice” is one in which this trend is not only
powerful but also an enormous opportunity.
The “disruption” in advice models and offers, the consolidation of the
landscape of advice and the nature of client interactions makes “advice” ripe
for opportunities for refreshing your business model. Let me build the case for why you need to do
just that.
The old model was
predicated on the advisers total control of the information of “financial
speak” and processes[3]. Now consumers not only have access to
information they have assistance through businesses such as Vanguard, TD
Waterhouse and any quasi scaled advice service or information portal. A “google” search for “apps for financial
advice” delivers over 9,000,000 results.
Scarier still is the recent development of an app where a consumer can
consult a financial adviser for $10 a question with the view of bringing advice
experts into someones world easily and efficiently and cost effectively.[4] Will that even work, surely that does not
suit your clients?
Well if your clients
are in the 30-49 year old age group, then you might indeed have a concern. It is this group that indicates that where
there is an advice relationship, that only 1 in 2 are happy with it.[5] This cohort cites the following as reasons
for their “disconnect” with the relationship:
· A lack of collaboration with the adviser so they feel in partnership
· A lack of individualisation in the solutions offered
· A lack of mobile capabilities that increase the convenience of
engagement and interaction
· And a lack of complete end to end solutions
The advice to
businesses and individuals in this space can be applied to an array of
businesses. In short a range of solutions that provides for enhance
collaboration, process efficiency and engagement efficiency is what is required
to be able to compete and differentiate.
Specifically, the
initial and subsequent engagement needs to be highly personalised and
convenient and must address the value to the client of their present
situation. Someone with “only” $50,000
to invest, may reveal that this $50,000 was delivered through years of hard
work and sacrifice and hence it is the most significant journey they have
financially been on.
This is very much
about empathy that is a fluid discussion not a formulaic process.
Secondly you must
connect with mobility and socially with clients. Choose your weapon carefully. This is about what is the best way to engage
with your clients initially and continuously that fits into their lifestyles,
not yours.
And lastly becoming
a central hub for your clients. This
means interconnections with other advisors perhaps that can be brought into
meetings easily or other streams in your offer.
How do you package
that up? Because the above looks like a
lot of hard work.
Well this is where
you are definitely behind the 8 ball if you are only considering this now. In 2014 Liz Moyer wrote in the Wall Street
Journal[6]
that businesses are “rolling out souped-up smartphone and tablet apps
that let clients conduct video-chats with advisers” (amongst other
services). Citigroup private banking
arm back then was testing a new video-chat function with selected clients and
planned to make it broadly available to customers. (Which they did). Moyer wrote that the customers can use the:
“iPad app,
which the bank introduced in February, tap a tab on the app screen and initiate
virtual face-to-face conversations with their personal bankers.
The software
also allows both client and adviser to see data about the client's portfolio
simultaneously, or to see possible investment outcomes in varying market
scenarios. "You can have a shared experience. It's the kind of interaction
between client and adviser that we've been pushing toward," says Tim Tate,
the private bank's global head of client management.”
And if that’s
not suggested to you that perhaps you need to consider easier, efficient
collaboration via digital means, perhaps this will:
“Investors
could move their business elsewhere if firms don't respond. A survey released
in June by consulting firm CapGemini and RBC Wealth Management found that 57%
of affluent people over age 40 and 80% of those under age 40 would consider
leaving their wealth-management firm if digital services weren't offered. The
survey defined digital services as functions that are Internet or mobile-based,
including social media, email and video.”[7]
So what is
the great differentiator? It’s
advancement in engagement. Simply
that.
Engagement
that suits a customer, that is efficient, engaging, collaborative, compliant.
[1]
http://goodthinkinc.com/resources/books/the-happiness-advantage/
[2]
http://www.forbes.com/sites/kathycaprino/2013/06/06/how-happiness-directly-impacts-your-success/#4d0658517ae2
[3]
Accenture, 2015, New Realities, New Approaches, Changing the Client-Advisor
Relationship in Wealth Management.
[4] http://www.sbs.com.au/news/article/2016/04/11/app-offers-financial-advice-under-10
[5]
Accenture, 2015, The Greater Wealth Transfer
[6]
Moyer, Liz, Wall Street Journal 11 July 2014 “ A New Wave of Apps for Wealthy Investors; Wealth Managers Add Web Tools as
Online-Advice Firms Like Wealthfront and Betterment Grow
[7]
Moyer, Liz, Wall Street Journal 11 July 2014 “ A New Wave of Apps for Wealthy Investors; Wealth Managers Add Web Tools as
Online-Advice Firms Like Wealthfront and Betterment Grow
