Longtime advisors often marvel at the pace of change in their industry. Every year seems to introduce more and faster upheavals, and success comes to those who anticipate and act on the next big thing.
The business of financial advising reflects societal trends. From embracing diversity to staying one step ahead of the latest technologies, advisors do not operate in a vacuum.
For 2019, the challenges of change may sound familiar. Differentiation and integration continue to dominate, but how advisors achieve these goals can vary more than ever.
"With robo-advisors and artificial intelligence, we face an increase in competition," said Roberta Fitzgerald, a Los Angeles-based advisor. "To counteract this trend, we need to implement a personal touch while still using technology."
She says that striking that balance will largely depend on completing two tasks in the year ahead. First, update your website content every few months to humanize your practice. Summarizing recent examples of your community involvement or sharing life events (marriage, your kid's graduation, etc.) can bring your readers closer to you.
Second, apply cutting-edge tech tools in new ways. Rather than respond to new software and other product rollouts with grudging interest — and undergo just enough training to get your feet wet — seek out multiple opportunities to experiment with the latest offerings.
"Don't rely on your own company's training," Fitzgerald said. "Be open to learn in new ways," such as participating in webinars hosted by other firms, professional associations and vendors.
Step into your client's shoes and confirm that the platforms and portals that you set up are user-friendly. Increasingly, advisors are inviting key clients to provide feedback in the form of a "customer advisory board" or informal group of beta testers.
Tell Your Story
From a marketing perspective, advisors can produce better results in 2019 by a change in their approach to small talk. It's easy to lapse into describing your business in a vague or uninspiring manner.
"Prepare to tell your story with authenticity and conviction," said Susan Kornegay, a partner at Pathfinder Strategic Solutions in Knoxville, Tenn. "Prepare several client stories so that you can explain how you helped specific people with their specific concerns. Then pick a story that resonates with the demographic of the person you're talking with."
For example, Kornegay suggests replying to a stranger's query ("What do you do for work?") by saying, "I'd love to tell you what I do. Let me start by telling you about one of our clients."
Organize these stories in three succinct parts: Who they are, what their concerns were and how you helped them. Maintain client confidentiality while still crafting a compelling narrative that illustrates the value you deliver.
Like Fitzgerald, Kornegay emphasizes the value of human touch points in an increasingly tech-driven world. She urges advisors to mix online outreach with in-person networking.
"With social media, it's tempting to overlook getting involved in your community," Kornegay said. "Face-to-face interaction is more powerful now. So look for leadership opportunities to lead committees and manage community projects."
With more consumers tracking the news cycle, another effective way to market yourself is to offer trenchant commentary on change in the financial landscape. When mingling with new acquaintances, Kornegay suggests saying, "Let me share with you what I'm seeing these days" in terms of, say, interest rate moves or how legal, regulatory or political headlines can affect investments.
Keep It Hip
Along with keeping pace with rapid technology advances, staffing moves can position your firm for a stronger year ahead. Seeking diversity among your team to reflect your diverse client base can increase your appeal across generations and demographics.
If you want to cultivate younger professionals, such as the adult children of your aging clients, it helps to hire staffers who identify with them.
"Groom junior advisors by creating a work environment that's engaging to millennials," said Elisa Garcia, business development manager at Betterment for Advisors in New York City. "To attract these junior advisors, who will help you build relationships with second-generation clients, you can promote remote work with flexible hours, set up a satellite office with a shared workspace or create a service-level offering with cool loft space" that's geared for this market.
Regardless of your employees' age, gird for more competition in the race for talent in 2019. In today's tight labor market, retaining star performers requires more creativity and initiative.
Traditional pay packages, even generous ones, can work against you if top candidates can negotiate better overall deals at other advisory firms. Reconfiguring your compensation can help you attract the best individuals to grow with your company.
"Incent employees," said Ryan Shanks, chief executive of Finetooth Consulting in Longmeadow, Mass. "Beyond just a base with bonus, tie them into the overall profitability or performance of the business."
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The post To Stay A Step Ahead In 2019, Anticipate Change And Act On It Now appeared first on Investor's Business Daily.
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