Page 41 - Investment Advisor - December 2021
P. 41
THE FAST TRACK
By Angie Herbers
Advisors Should Be Concerned About Client
Needs and Here’s Why
Recent research shows that the pandemic has changed how consumers
think about financial advice — and advisors. Here’s how to be prepared.
omplacency is one of the biggest 1. LOW PATIENCE TOLERANCE
threats to any business. Even if One of the primary observations about
Ca firm has a long track record advisors was about availability. In other
of success, subtle shifts in customer words, how fast consumers can get
expectations and satisfaction may pose ahold of their advisor. We did not ask
hard-to-detect risks. respondents to define timeliness.
In our consulting work, we started One-third of respondents stated they
to see evidence of a significant shift in want more contact outside of meeting
consumer behavior, so we conducted a time and 28% want virtual meetings.
study to gauge those risks. We wanted In other words, they want to talk to
to understand the extent to which the a human advisor outside of business
changes might impact advisory firms hours and when they really need them.
and how we might help them navigate In our consulting work, we know that
going forward. clients’ expectations in this area have
Therefore, we surveyed 1,000 con- changed dramatically. Instead of being
Our survey confirmed sumers nationwide using a third-par- content to wait 24 hours, or until the
that big shifts have ty firm. Respondents had more than end of the day, the window of patience
now appears to be about 90 minutes. If
$250,000 to over $6 million in assets;
indeed occurred slightly more than 50% were male and the advisor does not respond within that
during the pandemic about 70% were partnered. time frame, the consumer’s trust in, and
opinion of, the firm tends to decrease.
Our survey confirmed that big shifts
period. These include have indeed occurred during the pan- 2. QUESTIONING THE VALUE OF
demic period. These include changes in
changes in what what consumers want and need from FINANCIAL ADVICE
consumers want and advisors and how they perceive and value Among the survey’s most striking find-
them. While it’s too early to say whether
ings was that consumers, both those with
need from advisors the changes will outlive the pandemic, an advisor and those without, are begin-
and how they perceive advisors need to know what’s going on ning to question the value of financial
so that they can decide how they should
advice. In fact, 39% of men and 30% of
and value them. respond today and in the coming year. women reported that they were unsure
Survey questions ranged from what
of the value that advisors provide.
made the respondents happy or unhap- We cannot yet define exactly what
py about their advisor, to what specific the consumer perceives as value, but
technology they wanted to have avail- we do see indications that they don’t
able, to which methods of communica- fully understand the process advisors go
tion they preferred. through behind the scenes in managing
Of the respondents, slightly more money and preparing advice. Questions
than 60% said they employ a financial about advisory value likely are inten-
advisor. Four findings stand out as most sified by slow communication on the
important for advisors today. advisors’ part.
DECEMBER 2021 INVESTMENT ADVISOR 39
