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| How Technology is Changing the Role of the Advisor |
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Way back when—say, 15 years ago—advisors provided an obvious service to clients: They were the keepers of important financial data. People who needed that information had nowhere else to go. It was a unique and clearly defined role, and one of vital importance to clients.
That was then. Now, thanks to the Internet, clients and potential clients have easy access to a wide assortment of up-to-the-minute financial information and planning tools—-not to mention the ability to buy and sell stocks online. That presents a challenge to investment professionals: how to create value in the age of the Internet?
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Q&A |
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Smart use of social media, such as Facebook, Twitter and blogs, can help advisors communicate with clients and build their brand. But how to do it right? And where to begin? We talked to Kristen Luke, principal of Wealth Management Marketing in San Diego, about what advisors need to know in order to successfully introduce social media into their practices.
What are the biggest stumbling blocks that advisors face when trying to use social media?
Compliance is probably the biggest. That’s less true for RIAs, of course, and more of an issue for advisors at brokerage firms. The policy at many firms has been to allow no use of social media at all.
However, even that’s starting to change. For example, Morgan Stanley Smith Barney plans to allow advisors to use LinkedIn and Twitter. Many other firms are trying to find a way to incorporate social media into their policies, though the guidelines seem to vary. One firm may let advisors tap LinkedIn, but not blog, while another may allow them to use Facebook, but not Twitter.
As firms start using tools to monitor social media interactions, however, it will be just a matter of time before they loosen their policies, and most advisors are allowed to use social media.
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Developing Relationships Across Generations |
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It's a fact of life: Clients' adult children rarely choose to work with their parents' advisors. One effective way to boost loyalty is to reach out to clients' offspring, as well as their own elderly parents. It means one thing: Advisors need to develop relationships across generations.
For the consultative advisor, however, that's good news. The reason: Reaching out to clients' children and parents is a natural outgrowth of the in-depth services that are part and parcel of the role.
Consider Eric Brotman, president of Brotman Financial in Timonium, Md. About 10 years ago, he started meeting with a 64-year-old client's two college-age children while doing estate planning for the family. Now in their late 20s, the offspring are still his clients. Says Brotman, "When the kids inherit their father's estate, I anticipate I'll continue working with them until I'm ready to retire." In addition, over the years, he helped the man's father, who didn't have an advisor. Total size of the account: $1.4 million and growing.
But reaching out across the generations provides a host of other advantages. It helps attract younger clients in their prime accumulation years.
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Which one of the following are you most likely to incorporate into your practive or upgrade over the next 12 months?
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Social media
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CRM system
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liPad
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Smart phone |
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Voice over IP |
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