Financial advice is always going to be a people business. Because of the way that money is connected to human emotions, our clients are always going to need to interact with real people. They will always want to feel understood, and they will always want to see in your eyes whether you're truly confident in the advice you're giving.
At the same time, the industry is increasingly making room for technology and for good reasons. One recent example of how technology is becoming more critical has to do with clients' changing service expectations.
Over the past three years, we've seen clients wanting their advisors to respond faster and faster to their inquiries. Clients used to expect their advisor to respond to a call or email within 24 hours. Not long ago, that window had shortened to the end of the day, and now, based on what we're hearing from the hundreds of firms we serve, more and more clients are disappointed if they don't hear back within 90 minutes.
We don't know precisely what's caused expectations around response times to change. It could be a symptom of our modern, anxiety-driven culture. It could be a form of fallout from the COVID-19 pandemic. It could be driven by the fact that we can get pretty much anything we want instantly on Amazon. But based on feedback from our clients, there's no question that the response-time bar has been raised.
Thus, the yardstick for client service today not only consists of the old basics — technical knowledge and professional advice — but also quick response times. So how are advisors accommodating their clients' needs in this area? One main way is that they are building a digital client experience.
Before sharing examples of what a digital client experience can look like, it's important that we define the term. That's because in other industries, the digital client experience is often connected with social media, email marketing and other parts of firms' marketing programs.
In a recurring revenue model, where a client pays for the service they receive once a quarter or once a month, the digital client experience becomes critical after the client has hired the advisor. The primary goal is to keep existing clients engaged and connected.
It's critical for advisors to understand clients' preferences when it comes to digital communication, and which mode of communication will be most effective. Should you communicate with clients via text? Is email better? Phone calls? How about document management programs?
Some of those forms of digital communication can increase response times significantly, but they also can put a burden on compliance. Every firm's approach has to be mapped out intentionally. And the digital experience must align with, and sit on top of, the initial client experience.
If your fundamental client experience has holes in it, your digital client experience will be flawed as well. Assuming you have a solid client experience in place, it's time to look at the ways that the digital client experience is evolving to shorten response times.
1. Set a response time goal.
A foundational part of creating a successful digital client experience is establishing a response time goal. Whether digital or otherwise, what is the time in which the firm expects to deliver responses to client inquiries? Does the firm expect all advisors to respond to clients within 24 hours? 90 minutes? One hour? Expected response time will determine the solutions that a firm will have to build into its digital client experience.
