If you want to increase assets under management for your financial planning or wealth management firm, you need to cater to the needs of your clients and give your customers what they are looking for. Whether you have been in the financial industry for decades or are just getting started, staying one step ahead of client service trends can mean the difference between success and failure.
It is no secret that the needs and expectations of financial planning clients have changed markedly in recent years. Younger clients in particular have come to expect, and even demand, instant answers, and they rely on multiple resources and a variety of tools to get the information they need. That means financial advisory practice owners would do well to adapt to those changing needs and expectations, and build self-help tools into their operations.
Practice owners can improve their performance with the next generation (millennials and other younger generations) by giving them the tools they need to get involved in the management their portfolios. Tools like eMoney Advisor allow financial planning and wealth management clients to keep track of their portfolios, track balances and change investments without coming into the office, while services like WealthBox enable practice owners to more effectively communicate with their clients.
Providing the right tools is one way to increase assets under management and attract younger clients to your practice, but it is not the only way. Young people are increasingly relying on social media for everything from getting the daily news to finding a job, and they are using the same social platforms to make their investment decisions and find suitable investment managers.
Reaching out on social media is a smart way to find new clients and service existing ones. Many practice owners are already doing just that. They are sending their brokers to special social media training courses and assigning office personnel to track and refresh the firm's Facebook and Twitter feeds. They are creating Instagram accounts and boosting their presence on professional sites like LinkedIn. All of these and other social media actions can be effective in building practices and increasing AUM, but not without the regulatory compliance that accompanies them.
Many practice owners have already discovered some of the avoidable pitfalls of unfettered social media access, finding out too late that posting on Facebook and Twitter can have negative consequences down the line. Many of the same laws that govern record retention for email and electronic communication apply to social media as well, and it would be a mistake to simply reach out on social platforms without first seeking expert guidance.
Tools like RegEd can help the owners of financial planning and wealth management practices reach out to millennials and other young people without running afoul of record retention and compliance regulations. Staying compliant has never been more important, and staying on top of compliance patterns should be part of any social media outreach program.
Other types of services can be just as useful in building AUM and tapping young investors. Truelytics, for instance, helps practice owners optimize their businesses across a crucial set of variables and maximize their returns for each of their clients.
Reaching out on social media and providing the right portfolio analysis tools are big pieces of today's puzzle to increase AUM and secure the future of your firm, but there are other pieces, too. In fact, one of the easiest ways to improve client outreach and improve performance with young people is right under your nose.
You have worked hard to create a solid base of clients, and you have worked even harder to help your customers succeed and meet their short-term and long-term investment goals. Many of those clients are also parents (and aunts and uncles and grandparents) and now that their kids are getting older, they will be seeking professional advice and guidance as well.
Talking to your existing clients about their children is a great way to nurture future relationships and set the stage for success. Even if they are not ready now, those kids and grandkids are likely to think of you when they do start investing, especially if you have been a trusted advisor (if not practically a member of the family) who has always been there and provided quality service for their parents and grandparents.
As the owner of a financial planning or wealth management firm, you can further improve your client outreach, and ultimately AUM, with a few well-timed offers. The approach practice owners take can be as unique as they are, but the goal is always the same.
Some practice owners offer their existing clients an hour of advice and guidance for their working-age children. This can be a great way to increase AUM and build relationships for the future, and many practice owners have found great success with this approach.
Other practice owners offer gift certificates aimed at young people, while others host informational presentations or provide discounts and other incentives for their social media contacts and followers. Young consumers have come to expect these special incentives and events, and the practice owners who provide them stand to gain a short- and long-term edge over those who don't.
It is clear that young people represent the future of the financial planning and wealth management industries. It is also clear that they will need just as much help and guidance, or possibly more, than their parents and grandparents needed. The changing nature of work, including the increasing popularity of freelancing and reliance on the gig economy, has created a whole new set of challenges for young people, and the practice owners who can best address those concerns are likely to be the winners going forward.
If you have not already started reaching out to younger clients, now is the time to get started. There are two ways to for financial advisors and wealth managers to increase AUM - attracting more assets from existing clients or building their base of clients. Practice owners who are able to reach younger workers can increase their assets under management, build the value of their brands and secure the future of their firms.
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