While financial professionals get ready to close the books on another year, now may be the best time to consider strategies for 2016, especially if you haven’t already. As the industry continues to evolve, it can be difficult to keep up with all the latest trends being utilized by other financial professionals. LifeHealthPro recently made a mark on this discussion by sharing an infographic on the three best models for attracting new business and retaining your best clients. Using these techniques, firms will see increased growth in revenue, and a decrease in wastage of time and services. Advisors also can’t neglect the importance of building a strong, reliable brand.
According to The Financial Brand, the biggest area for growth in the financial services sector isn’t about new products or even delivering higher returns on investments. Rather, the best way financial professionals can generate and capitalize on new business is by optimizing their customer experience. A great way to do this is by becoming more focused on engagement through today’s most popular channels, namely mobile and digital. While Baby Boomers likely represent financial professionals’ biggest customers today, that is quickly changing. According to a study by Ipsos, Generation X (age 34-50) now comprises a bigger population of affluent households than Baby Boomers. This massive shift in capital means financial institutions will need to continue pushing for innovation in customer experience, which younger generations value significantly.
Along with focusing on a younger market, financial professionals will greatly benefit by doubling their efforts to attract and retain women as clients. Women represent a unique demographic for financial advisors. According to data from the U.S. Social Security Administration, the average American woman who is 65 years old today can expect to live to 86, more than two years longer on average than a man of the same age. Women also tend to be less accepting of financial risk than men, according to a survey by Blackrock. Keeping these trends in mind can help financial professionals make smart, calculated decisions regarding specific marketing strategies, as well as general business goals.
Capitalizing on data
In 2016, firms that can capture and effectively utilize the full spectrum of data available will reap huge rewards, according to Financial Planning’s report on the Tiburon CEO Summit. Digital marketing will especially take the forefront as businesses look to attain the previous goal of optimizing user experience for each customer. By collecting and accurately unlocking the meaning behind huge sets of data, financial advisor firms will have access to invaluable information about how their clients, both potential and active, use their services. As self-service financial tools gain steam, advisors need to make a case for how their business is different (and better) than the competition. Unlocking the secrets behind big data is one of the best ways to achieve that goal. Firms that can utilize data insights to drive social engagement will see the biggest gains not only in numbers but also in customer satisfaction.
Latest posts by Highland Capital Brokerage (see all)
- Robert W. Finnegan, J.D., CLU®, Published in Trusts & Estates Magazine - June 6, 2018
- May 2018 LTC Newsletter - May 24, 2018
- April 2018 LTC Newsletter - April 26, 2018