This post has appeared in the India Markets Observer 2018, an online publication that brings together experts who discuss these challenges in the fund industry and investing insights and various perspectives.
Julie Littlechild is a speaker, writer and the Founder of AbsoluteEngagement.com. She talks to Morningstar about the importance of client feedback, client engagement and building a brand.
What is your view of technology when it comes to client engagement?
Technology can support client engagement in a big way.
When we use the term ‘automation’ it feels like we are not doing our jobs. But I think it helps in personalizing content, being more efficient, and giving clients access to information as and when they need it. A lot of this can support the fundamental client experience.
Technology doesn’t replace the adviser but allows him or her to focus on the real work of understanding clients and giving them relevant advice.
How is client engagement changing in the era of social media?
It’s a great opportunity. It provides another way for advisers to communicate with clients and even educate them through social media. They can use it to connect clients to good information on topics that are of interest to them.
Any dos and don’ts when employing this medium?
The message should be coherent and consistent and communicated in a way that supports their target clients. It’s not communicating just anything. If the target segment is families, they can focus on how to raise financially independent
children and financial literacy. Curating content and sharing it on social media is a great way to go.
Adopt a social media vehicle which works. Being everywhere - Facebook, Twitter, LinkedIn, You Tube, Instagram, can be too much and you will end up doing nothing well. Become an expert in one channel. Find out which social
media platform your clients are using. If none of them are on Twitter, then don’t use it.
Advisers always have this dilemma of scaling up versus catering to a select client base. If they choose to have a large client base, does it compromise on service quality?
I’m a big believer in focus and having a niche. We can add more value if we clearly define who we work with. Having said that, you could say that your niche is young families. You can have many clients who are somewhat similar. Once we have focus we can scale and go deep on value. If you work with 10,000 clients and they represent everyone, it becomes difficult to create client experience that reflects their needs. It becomes watered-down because you are trying to make everybody happy. I think finding focus even in a big business is important. It could mean having a couple of different target markets. This helps us to communicate effectively.
How important is having a business plan for advisers?
I’m a big believer in planning. Advisers preach it to their clients, so they should do it themselves.
But formal planning doesn’t work for everybody. And, having a clear strategy is more important than having a business plan. Who is it that you are building a business to support? How are you adding value? What is your service proposition?
How can advisers build their brand?
A brand is what you are promising to clients. Advisers should have clarity on who they are, what they stand for, what they deliver, and the impact it will have on clients. If they are clear about these things, then it just about broadcasting
their brand which is very different from building one. Social and digital media play an important role in getting the word out.
How important is taking client feedback in advisory practice?
One type of feedback is more input like, talking to clients about their needs and challenges and using that to define your offer. The second one is quantitative feedback like surveys which measures your success. It is almost impossible
to have a client centric business without involving clients in the conversation.
How can advisers get better at prospecting?
Referrals are low-hanging fruits. Advisers need to fully leverage their existing relationships which will provide a steady stream of referrals.