Charge Up Collaboration with Clients and Prospects: How Technology Can Help You Break New Ground

Charge Up Collaboration with Clients and Prospects: How Technology Can Help You Break New Ground

Customer-centric firms will be winners At the heart of seemingly every great advisor-client experience lies one irreplaceable element: a strong personal relationship. Building that personal bond with clients takes time and effort, but the pay-off can result in a strong and trusting client base that has the potential to grow with the advisor. 2

Human and machine are expected to merge for an omni-channel experience Yet, while there is no substitute for these personal connections, advisors do have new and powerful collaborative technologies that can help them find, build, and maintain these relationships even better. 3

Just how powerful are these technological opportunities for advisors? In a recent Fidelity research study on advisor usage of collaboration tools, 8 in 10 advisors said that technology: Enhances the services they provide to clients Improves their ability to effectively engage with clients Matters to most clients, especially to Gen X and Y clients Allows them to better showcase their value to clients Source: The 2016 Fidelity Advisor Community Study: Advisor Usage of Collaboration Tools and Website 4

OK, but did these benefits actually translate into more business? According to Fidelity research, advisors who utilize technology more than their peers (often called eadvisors) report: More assets under management - almost 40% more than peers A greater number of Gen X and Y investors Simply put, technology is making clients lives easier and, by extension, advisors who embrace technology can make clients lives easier as well, which can help build deeper relationships. A wider geographical reach than their peers Source: The 2014 Fidelity Advisor Insights Study. The study defined eadvisors as 30% of the advisory population who are more frequent users of technology applications when running their advisory practices compared to other advisors. 5

Perhaps that's why client experience is driving an increase in technology spending 72% According to a recent Aite Group survey of wealth management executives, nearly three quarters said one of the top drivers for increasing technology spending was to improve the client experience. Source: Capturing the Next-Generation Investor: What High-Tech / High-Touch Mix? Aite Group, March 2015. 6

Consider charging up your collaboration throughout the client journey When thinking about using technology to collaborate with clients, we encourage firms to think about the entire client life-cycle. The following pages detail a number of actions to consider. The Six Stages of Client Engagement Prospect Lead generation and prospect engagement Sales process Client Client onboarding Ongoing advice and guidance Scheduled client reviews Ongoing service and communications 7

Strengthen your collaboration during the prospect experience Technology can help you to find and engage prospects in a collaborative way, giving them a strong sense of what it would be like to be your client. The Six Stages of Client Engagement Prospect Lead generation and prospect engagement Sales process Client Client onboarding Ongoing advice and guidance Scheduled client reviews Ongoing service and communications Tools that can help enhance collaboration: Social media (LinkedIn, FB, Twitter, Instagram) Firm website and messaging Web content and tools Video conferencing 8

Leverage social media to uncover and engage those hard-to-find prospects So, where are your prospects swimming more and more frequently these days? Here s one undeniable truth: It s easier to catch fish if you go to where they are swimming than if you try to make them come to you. Social media. 9

Don t underestimate social media s potential for lead generation Social media can give you a fast, easy, and inexpensive way to try to engage niche markets, Gen X and Y investors, or ideal prospects that reside outside of your traditional geographic reach For me, social media is a way for me to extend my brand online and connect with other people that I would not ordinarily meet through other channels. Russ Thornton, WealthCare Capital Management Nearly half of Gen Y investors say they re more likely to relate to an advisor that has a social media presence. Source: The 2016 Fidelity Investor Insights Study. 10

Advisors report real results from social media and plan to ramp up its usage 55% of advisors report they plan to increase their level of investment in social media channels over the next 12 months. Source: The 2016 Fidelity Advisor Community Study: Advisor online strategy Four out of 10 advisors using social media have generated sales leads in the past 12 months. And, on average, they have generated 24 leads. Source: The 2016 Fidelity Advisor Community Study: Advisor online strategy. 11

Websites can help optimize the sales process and prospect experience Consider the examples from Atlanta-based Joyn Advisors, which offers behavioral wealth management. We make it very clear on our website that we are a different type of firm; in fact our goal was to look like no other financial services firm in the marketplace. Prospective clients who visit our site tell us that we achieved that. They scour our online material and self-select whether or not they are a good fit for our firm. Nancy Sagar, Vice President of Marketing for Joyn Advisors Joyn Advisors also relies on its website to foster the firm s initial collaborations with prospects. A clearly defined value proposition can help differentiate you from competitors, as well as communicate to prospects how you plan to serve them as eventual clients. One of the first things we do when we have an opening call with a prospect is to ask them to look at the website if they have not done so already. We use the site during that initial call as a springboard to discuss their needs and how we re going to engage with them to help fulfill those needs. Gary Whitehurst, Executive Vice President and Chief Revenue Officer of Joyn Advisors 12

Content-driven websites are on the rise, with some firms relying upon them to target younger investors Website content and tools can help underscore the fact that you understand the prospects needs, particularly with Gen X and Y investors who often prefer to initially engage by searching an advisor s online content before meeting or speaking with them. 70% - 80% of advisory firms are expected to provide content on their websites in the next few years. With nearly 6 out of 10 advisors targeting Gen X and Y prospects, 50% of this group plans to create online marketing content that appeals to their target. Source: Capturing the Next-Generation Investor: What High-Tech/High-Touch Mix?" Aite Group, March 2015. Source: Capturing the Next-Generation Investor: What High-Tech/High-Touch Mix?" Aite Group, March 2015. 13

To eliminate time and distance barriers, consider video-conferencing While current usage of video-conferencing is somewhat low, even among Gen X and Y investors, the desire exists for greater adoption of this communication tool. 26% of Gen X and Y investors use video-conferencing with their advisor Not only can video-conferencing help you gain traction in tough to reach markets, it can also make it easier to conduct larger, travel-free group discussions when warranted, such as the inclusion of a prospect s accountant or attorney. 24% of Gen X and Y investors do not, but are interested in doing so Source: The 2016 Fidelity Investor Insights Study 14

Strengthen the client experience with enhanced collaboration Technology can strengthen relationships with both new and established clients. The right tools can make every step of the client journey more collaborative, making it easier to build strong relationships with your clients. The Six Stages of Client Engagement Prospect Lead generation and prospect engagement Sales process Client Client onboarding Ongoing advice and guidance Scheduled client reviews Ongoing service and communications Form-filling technology e-signature Client portal Financial planning software Tools that can help enhance collaboration: Secure online document vault Account aggregation Screen sharing Tablets and mobile devices Email alerts 15

Deliver efficient client onboarding that breeds confidence that your client made the right decision to work with you?? Client transitions to any firm can be a sensitive and anxious time. That s why you want to make sure your onboarding process is as seamless as possible which can help establish a good client experience. What s more, the more efficient your onboarding, the more time you have to conduct important discussions about your client s goals, needs, and values. 16

Adopting paperless technology solutions may help streamline your onboarding process To make onboarding faster and more efficient, advisors report using a range of tools, including form-filling technology to help populate account applications. They are also allowing investors to use e-signature for the signing of financial documents such as proposals and account-opening forms. 1 in 2 Advisors using onboarding technology 4 in 10 Advisors using form-filling technology 4 in 10 Investors say their advisor allows them to sign financial documents via electronic signature. Source: Transforming Your Business Through Advisor Technologies, Celent, a division of Oliver Wyman, Inc., October 2015. Source: The 2016 Fidelity Investor Insights Study. 17

Onboarding can be an ideal time to set up clients on your firm s client portal The onboarding process is also a time to train clients on key time-saving functions, like accessing real-time information on their financial picture. Taking these extra steps early in the relationship can also help demonstrate your firm s commitment to financial transparency. One of the first things we do, during a new client s first 90 days with us, is to educate them on all of the online tools and resources available to them. Onboarding can be an ideal time to set up clients on your firm s client portal. It s a great way of showing them that we re committed to making life as easy as possible for them with our firm. David S. Fisher, Co-founder of Signature FD, an Atlanta, GA firm 18

Account aggregation can provide real-time information to aid real-time decision-making To make smart and confident decisions, clients don t want to rely on potentially stale data. That s why the delivery of real-time information can be an invaluable aid in fostering better and faster decision-making among your clients. 19

Aggregation tools provide clients with a comprehensive financial picture One way to get started: the use of an account aggregation feature, which is typically included in financial planning software applications. Aggregation provides clients with a real-time, comprehensive picture of their entire financial situation including accounts held at outside firms which advisors can review with clients during important conversations about goals and priorities. This singular holistic view can also help advisors develop an optimal investment strategy that supports client goals across all of their accounts. 81% of wealth management executives believe it s critical or very important to provide clients with a total view of their wealth, including accounts held at external firms. Source: Wealth Management Incumbents Digital Strategies, Aite Group, November 2015 20

Leveraging dynamic scenario-planning capabilities during the financial planning process can help with decision-making By showing clients what-if scenarios, and discussing how certain financial trade-offs can impact their future, clients are often in a better position to make decisions that align with their values and help them meet their goals. Providing clients with this comfort can only help deepen the bond with the advisor. In the old days, when clients wanted to see the impact on the financial plan if assumptions were changed, we used to re-run the numbers and then have another meeting to share the output. Now, by using the scenario-planning feature available with our financial planning tool, we make changes realtime, which makes for more engaging and more productive meetings with clients. Gary Whitehurst, Joyn Advisors 21

Interactive, visual reports are an area where collaborative technology can help take engagement to the next level Tech-savvy advisors are more likely to use dynamic and real-time information. Advisors who provide a holistic view of assets and liabilities, as well as interactive or visual reports for clients: eadvisors Other advisors 79% 47% We find that some clients are visual-based learners. It s very helpful for them to see graphical information so that they can actively participate in a discussion about the information presented. Oftentimes, we ll take things a step further by offering interactive reports with the ability to toggle over graphics to demonstrate how the client s situation could change under various scenarios. Pat Barry, President of Barry Investment Advisors, New Bedford, MA Source: The 2014 Fidelity Advisor Insights Study. 22

More and more, we re all on-the-go. Consider incorporating technologies to support client meetings and reviews. Screen sharing capabilities, are a great example of how technology can enhance collaboration. These capabilities can be helpful when advisors are looking to discuss important documents, review investment results, and conduct financial planning what-if scenarios when the client is not able to meet in person. While current usage of screen sharing capabilities is low, half of all advisors in Fidelity s collaboration study have an interest in using this capability in the future. Advisors using screen-sharing capabilities 33% 50% Do not use, but interested in doing so Half of all advisors are interested in using collaborative screen-sharing capabilities Source: The 2016 Fidelity Advisor Community Study: Advisor usage of collaboration tools and website. Co-browsing is another capability to consider. Unlike screen sharing, co-browsing allows both parties in the meeting to make changes to a shared document on the screen. 23

Tablets are another tool for collaboration with clients 38% of advisors bring tablets to in-person client meetings to view portfolios, reports, and/or financial information together with clients 46% do not bring tablets but are interested in doing so Source: The 2016 Fidelity Advisor Community Study: Advisor usage of collaboration tools and website. 24

Use of client vault can help deliver accessible and efficient communications and service Are you looking to provide clients with easy and instant access to important financial documents, all in a secure environment? Then you may want to consider using a secure online document vault, which is typically part of a client portal. Research shows that a growing majority of advisors are providing clients online access to a secure document vault where they can retrieve and store items such as tax and account statements, investment reviews, and financial plans. Advisors using secure online vault 66% 26% Do not use, but interested in doing so Source: The 2016 Fidelity Advisor Community Study: Advisor usage of collaboration tools and website 25

Email alerts are often used hand-in-hand with document vaults While clients can use vaults to securely send advisors important financial information, oftentimes, advisors will also offer automated email alerts to inform clients when new documents are available in their vaults. All other advisors using automated email alerts 22% eadvisors using automated email alerts 74% Source: The 2014 Fidelity Advisor Insights Study 26

Actions to consider Finding the optimal mix between offline and digital efforts takes time and trial and the needs of each practice vary based on the needs of your client base. As you develop your plans, you may want to: Assess the ways your clients like to engage, including their digital preferences Identify any gaps in your current infrastructure based on client needs and the goals of your practice Develop a thoughtful plan to fill the gaps that includes setting priorities and allocating resources for implementation? Conduct an ongoing review of the effectiveness of your approach and refine as needed To help you with these efforts, we ve included a worksheet on the following pages to conduct a gap analysis. 27

Worksheet: Strengthening your digital communications i. Assess the effectiveness of your digital communications Determine the effectiveness of your digital ecosystem for prospect and client collaboration by completing the assessment table below. Client Journey Prospect experience Client experience Medium Social media Website messaging Targeted website content Video-conferencing Form-filling technology e-signature capabilities Client portal via website A secure online document vault (available within a client portal) Online financial planning software that includes dynamic scenario-building capabilities Account aggregation Tablets/mobile devices Screen-sharing capabilities e-mail alerts A B C I effectively use this medium I could improve upon my current usage of this medium I would like to add this medium to my collaboration mix Tick the most appropriate answer for each medium 28

Worksheet: Strengthening your digital communications ii. Identify ways to enhance your digital ecosystem for communications Identify ways to enhance your digital ecosystem for client collaboration by reviewing your findings from Columns B and C in the above assessment and completing the below table. Client Journey Medium Planned Action and Dedicated Resources (People, Time, Investments, etc.) Target Date for Completion Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Prospect / Client experience Delete as appropriate 29

Additional resources eadvisors Take the Lead How some advisors leverage technology to help spur outsized productivity and growth The Tech-Savvy Advisor Recent Fidelity research shows technology enables advisors to connect in powerful ways with next gen investors Building a Strong Online Presence: Best Practices for Advisors to Consider Profiles of firms and advisors who are leveraging social media strategies to connect with others and extend their brand online Take the Mystery Out of Improving Your Sales Process How mystery shopping may uncover ways to improve the sales experience for your prospects Delivering the Paperless Office: Five steps to help improve efficiencies and reduce costs at your firm Fidelity research reveals the five steps firms may want to consider to help their firm move to a more productive experience Enabling the Next Wave of Growth with Workflows A Technology and Operations Toolkit providing insights on how to standardize common tasks with workflows and help drive growth in your firm Wealthscape SM the Gateway to Your Total Advisor Platform Connect with Fidelity tools and third-party solutions to help you digitize, enhance productivity and collaboration, and focus on what drives value for clients. 30

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