The ONE Thing That Could Lose More Than 50% of Your Clients

The ONE Thing That Could Lose More Than 50% of Your Clients

For just about any practitioner to lose 56% of their clients in a year would be a disaster.  It is enough to jeopardise a practice entirely of course, but even in a best case scenario it will hurt horribly, and for quite a long time.

It is a very real possibility too, especially if you are dealing at the top end of the market, because there is one area where they have a rapidly shifting expectation.  The high net worth or affluent who are most discerning and who have the most options are ready to walk away if expectations are not met, and their expectations in digital engagement are very high.

The 56% I am referring to is the result of some research done by Capgemini and summarised in their World Wealth Report 2016.  While the report is itself a wealth of useful information for practitioners there were 2 numbers which kept standing out: 56%, and 100%.

The first (56%) was the proportion of clients who say they will leave their wealth management adviser/firm if they become digitally dissatisfied.


The second is a more alarming number: 100% of those who say they will leave do actually leave.


For those practitioners who may be reading thus far and who are not in the wealth management space…hang in there, because I believe this applies to your clients just as much as any financial planners’.  The thing we should remember about the High Net Worth clients who are far more likely to engage a holistic planner on a pure fee basis is that they are the “early adopters”.  They are the leading edge that the rest of consumer-land seeks to emulate and follow.  More often than not what we see the affluent clients do becomes the very behaviour that most other clients who are not quite so well off end up doing in time too.

So we should be worried, regardless of our advice discipline or current business model about ensuring that our clients do not become "digitally dissatisfied".

What is “digitally dissatisfied” though?  It is the client-driven demand for technology to add speed and convenience to their professional relationships. It is more than a nice facebook page. It is state of the art (fast!) equipment and software that enables them to access information, you, your firm and anything else which is part of the service package.  Fast, convenient, able to be accessed from multiple portable devices on their part….and secure.

Fail to deliver in any of these areas and those high end consumers today become “digitally dissatisfied”.  And 56% of them said if that happened they would leave their advisory firm.  100% of those who said they would, have done so.

This can happen to any practitioner too in the next couple of years, even if wealth management services to the High Net Worth are not the target market.  Think of this segment of the consumers who seek professional advice as a “leading indicator” of future consumer preferences.  They will be followed by others who don’t have the same wealth, but who do have the same lifestyle, net worth and service expectations.

These people expect professional practices to be connected and savvy users of technology.  That means things move at light speed, and our service or advice is constantly accessible via whatever equipment and whatever platform is leading edge.

Be warned: Digital Dissatisfaction on the part of your target market or existing clients could be disastrous.

Tony Vidler
Development
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Tony Vidler is the expert in professional services on creating strong personal branding and target marketing positioning. Tony has been in financial services since 1990, ... Click for full bio

Most Read IRIS Articles of the Week: July 17-21

Most Read IRIS Articles of the Week: July 17-21

Here’s a look at the Top 11 Most Viewed Articles of the Week on IRIS.xyz, July 17-21 2017 


Click the headline to read the full article.  Enjoy!


1. Is Alternative Beta the New Fixed Income?


The fee debate raging across mutual funds has long since seeped into hedge funds. Certainly the direction of travel on hedge fund fees was already downward, as strong industry competition and underwhelming performance have taken their toll. — Yazann Romahi

2. The 5 Big Questions for the Second Half of 2017


Equity markets continued their strong run in the second quarter of 2017, thanks to the global economy hitting its stride and registering the fastest level of growth in six years. For the first time since 2011, the U.S. is no longer the only shining star as economic momentum picked up across the globe. — Sonu Varghese

3. Smart Beta ETFs: The "Dream Diet" for Your Portfolio


What’s powerful about Smart Beta is that it allows investors to target very specific factors to create an ideal portfolio based on a given asset allocation.  — Salvatore Bruno

4. D‐O‐L = Confusion, Frustration, and Finally Reluctant Acceptance and Hope


At almost every financial and insurance conference we’ve attended in the past year, sessions to discuss the Department of Labor (DOL) Fiduciary Rule have been among the most popular. — Merriah Harkins

5. How To Hold A Stress-Free Money Conversation


In researching high growth professional services firms we made an eye-opening discovery. Those firms that did systematic business research on their target client group grew faster and were more profitable. — Michael Kay

6. 12 Financial Truths (Including Some You Won't Like)


We live in a noisy world where wisdom is hard to discern.  Here are a dozen financial truths honed from more than three decades of observation. — James E. Wilson

7. Are You Responsible for How Others Take Your Actions?


If you keep getting the same actions or responses from your interactions, it is most likely you that is the problem.  Stop blaming others for your issues. — Matthew Halloran​​​​​​​

8. 4 Surefire Ways to Enhance Your Influence


Being influential through your verbal and non-verbal communication Monday to Monday® requires deliberate practice. You can’t read how-to’s in a book or rely on your title and comfort level to be influential. — Stacey Hanke​​​​​​​

9. How Business Owners Allow Coffee Shops to Waste Time and Money


We all search for the least chaotic place to work and think. However, your location could hurt your productivity. Here’s why…. — Jennifer Goldman​​​​​​​

10. Four Simple Tricks to Find Your Passion That Work Every Time


You’re supposed to have a single burning passion, right? To feel this incredible drive to do this thing that you love. — Alli Polin

11. The Greatest Disrupter to Your Future Practice Will Be Your Clients


Real innovation, and real disruption, will be concepts and methods which “do new things that make the old things obsolete”. — Tony Vidler

Douglas Heikkinen
Perspective
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IRIS Co-Founder and Producer of Perspective—a personal look at the industry, and notables who share what they’ve learned, regretted, won, lost and what continues ... Click for full bio