When you consider the last five years in the financial planning industry, what are the big topics that come to mind? What about the last 10 years? For me, technology is at the top of the list. We’re seeing fintech tools being launched left and right, and now companies are looking to leverage AI to optimize efficiency in workflows.
Of course, this isn’t a concept unique to financial services. On an average day, I’m met by chatbots responding to customer service inquiries, Google Home controlling my thermostat and eerily accurate product marketing following me around the Internet. Ultimately, AI isn’t necessarily a bad thing. But there are aspects of life — and work — that it just can’t replace.
In the financial planning industry, we’re tasked with a big job: We need to efficiently understand our clients’ future goals so we can implement strategies that will help them achieve them. That requires getting to know people as human beings, asking good questions and listening—really listening—to their answers. In this facet of our jobs, human connection is key.
While human relationships are the backbone of a financial planner’s success, there is a time and a place for technology to supplement the personal relationships you’re building with your clients. Here are a few ways to focus on strengthening customer relationships while leaning on technology as support.
Pairing Art with Science
Human connection is the most critical component of a successful client relationship. Establishing trust and developing meaningful communication are keys to flourishing long-term relationships. While human connection is the art that makes relationships thrive, there is also plenty of opportunity to add science to enhance the overall client experience.
Years ago, financial planning was purely a manual process with plenty of room for human error. Pairing the right technology with a strong human connection is a recipe for success for both clients and planners.
Make Getting Together More Convenient
The topics we deal with every day can be stressful for our clients, and they lead busy lives. Reduce stress by structuring meetings in an environment that works for clients. Remote meetings have become more popular, and they work very well.
Technology has become an important component of these meetings, with everyone being on video to ensure the ever-important body language can be read by all parties. While in-person likely will always be the preferred meeting method, this alternative saves clients significant time. Technology such as Calendly and Bookings also cuts down on the back-and-forth of getting a meeting set, giving clients access to calendars to find a day and time that fits everyone’s schedules.
Communicate Proactively
If you’re waiting to hear from your clients, you’re probably only going to hear from them when they’re frustrated, confused or concerned. Prioritize proactive communication to stay ahead of potential problems and keep you top of mind for clients. This means they’re more likely to keep you in the loop as they navigate any number of financial considerations throughout the year.
Proactive communication can be as simple or as sophisticated as your organization has the capacity to deliver, focusing either on broad topics or more targeted materials to keep clients informed. Broad topics are a great way to keep us all thinking about financial subjects and how our priorities might be shifting based on what is happening in our lives. More focused communication keeps everyone aware of how short-term events might impact portfolios and strategies.
In addition to keeping people informed, outreach often reminds people to connect about personal matters. This is where another impactful use of technology comes into play. Utilizing a client relationship management system to document your clients’ current top financial priorities is a great way to ensure you are always considering their most important matters.
As technological advancements continue to earn headlines, it can be extremely tempting to explore every new product that hits the market. But in a world obsessed with rapidly evolving technologies, I’d encourage those in the financial industry to get back to basics and think first of their customer. If a solution won’t ultimately provide a tangible benefit to the client’s overarching financial wellness, the time to implement a new one might be better spent grabbing a coffee and chatting about life.
Zach Hurst is the Vice President and Managing Director of the Chattanooga, Tenn., office of The Trust Company of Tennessee, which is headquartered in Knoxville, Tenn.
