Key Points
- 72% of financial advisers’ value is attributed to relationships and personal connection.
- Technology is essential for building trust and human connection, especially in the absence of face-to-face meetings.
- Advisers must leverage social media, share relevant content, and invest in paid social outreach to connect with clients in a virtual world.
Where do financial advisers add value for investors?
According to a recent Vanguard investor survey, 72% of financial advisers’ perceived value is attributed to relationships, trust, and personal connection. The remaining 28% is attributed to the actual services they provide, such as financial planning and maximizing investment returns.
This highlights the importance of client relationships as the foundation of financial advising.
With the fear that digital connection may not facilitate the same level of personal, trusting relationships as face-to-face meetings, the adoption of technology by advisers has been relatively slow. However, with the onset of the COVID-19 pandemic, technology has become imperative for advisers to continue growing their practices.
Where Technology Fits in the Client–Adviser Relationship
Technology is the avenue to build trust and human connection when face-to-face meetings are not possible. Surveys show that consumers expect advisers to be tech-savvy and value a tech-enabled experience while still appreciating the human touch in financial advisory services.
1. Start meeting clients and prospects where they are: on social media.
With traditional in-person outreach techniques no longer viable, advisers need to connect with clients and prospects on social media to build trust and relationships.
Proactive relationship-building on platforms like Facebook and LinkedIn can help create trust and credibility. Personal interactions with clients carry more influence than those of the advisory firm, emphasizing the importance of connecting at a personal level.
2. Share relevant content that establishes your credibility.
Advisers can use social media channels to educate prospective clients about financial concerns that relate to them personally. This helps establish trust and connection while demonstrating expertise in financial information.
Sharing genuine and personalized content, tailored to the audience’s needs, helps build trusting relationships and credibility.
3. Invest in paid social outreach.
As advisers become more adept at social media, strategic paid social advertising can help reach the right prospective clients at scale. These paid social ads should complement informative and educational messages, building the adviser’s reputation as a financial thought leader.
Thoughtful targeting and messaging are crucial for the success of paid social ads. Money is no substitute for strategic distribution and reach optimization. Social media management software can assist in targeting and optimizing ad placements for maximum impact.
Integrating technology solutions into their practices is no longer optional for financial advisers. The right technologies and digital outreach strategies can help reimagine how clients are reached and engaged in a digital world.
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All posts are the opinion of the author and should not be construed as investment advice. The opinions expressed do not necessarily reflect the views of CFA Institute or the author’s employer.
Image credit: ©Getty Images / Drazen_
