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Last year was dominated by COVID-19, with the effects of the global pandemic reaching across every industry to change the way they fundamentally operate. While there have been many articles highlighting the economic woes in the U.S., there is no downplaying the serious impact this health crisis has had on personal finances. In a recent survey by Prudential and Flexjobs, one-third of respondents had lost their income as a result of the pandemic, while nearly half do not have enough emergency savings to last another six months.
This economic climate will have a long-lasting impact on investment behaviors. Based on study findings that were released at the Federal Reserve Bank of Kansas City’s annual conference in September, this pandemic could very well create pessimism among investors that is, “likely to dampen risk-taking and economic output for decades.”
During these challenging times, growing a financial advisory firm is a study in the fundamentals: understanding your clients and building relationships. These are skills that all financial advisors work to master, but against the background of a global pandemic that puts people at risk simply if they are within six feet of each other, there is an accelerated shift in digital opportunities to engage with clients more effectively to drive business.
Financial advice goes online
Digital tools like video conferencing that support online communications with clients are not new to financial advisors, but their increased adoption in everyday workflows is a shift in “business as usual” post-COVID. This goes hand-in-hand with the need to connect with clients on a more frequent basis. When faced with economic uncertainties, people require more reassurance that their investments are in good hands. Combine this with the added isolation of working from home and the pressures of juggling homeschooling or care for children and the elderly, financial advisors are providing more emotional support to their clients – in addition to their usual conversations about portfolio performance.
Stay up to date on software and tools so that communication occurs on the platforms where clients are likely to engage. Phone calls and texts are still effective ways to stay in touch, but Zoom, Google Meet and Skype are the most commonly used applications to enable video calls for valuable “face-to-face” meetings.
A multichannel approach
To maximize engagement with potential clients, financial advisors must employ a multichannel strategy that leverages diverse methods of communication, including email, phone and video. In a recent survey, those who used such an approach reported the most prospecting success, with 74% of respondents noting average or above-average results. Of the advisors who only used email to prospect, three-quarters reported below-average results. Monthly email newsletters and individual phone calls or video chats are all good ways to create multiple points of contact. In the absence of traditional, in-person meetings, connecting through alternative methods is crucial to growing potential business.
The power of social media
Social media is also an important element in any multichannel marketing strategy. Since the start of the pandemic, between 46% and 51% of American adults have used more social media. Facebook, LinkedIn, Twitter and Instagram are all platforms where potential clients can be found. With Google searches for “coronavirus money help” increasing by 3,600% since the beginning of the pandemic, financial advisors can fill the need for more digital resources by creating material about loan programs and personal financial support that can be distributed across social media channels. Podcasts, blogs and infographics are all examples of the types of content that can be used to position firms as authorities on the latest information impacting personal finances – especially when people are spending more time online.
To increase the value of your content, repurpose collateral in different ways across multiple social media platforms. Holding a webinar over Zoom? Promote the live session through LinkedIn and Twitter, record it and then use a clip in an Instagram post that leads prospects to your site for instructions on how they can download and watch the on-demand version.
Building a path forward
The world has changed, but the values held by financial advisors remain the same. Creating and fostering authentic relationships with clients is still the most important objective for advisors, even if most those connections now take place virtually. In times of market volatility, applying fundamental skills to a flexible marketing strategy that leverages technology and multiple channels of communication will lead to the comprehensive emotional support and financial advice that current and potential clients need.
Christopher Crawford is the director of advisor relationships at Buffalo Funds. Christopher notes that success for advisors begins with being a good communicator and a better listener. Buffalo Funds is an asset manager with 10 actively managed, no-load mutual funds, Mission, Kansas.
Read more articles by Christopher Crawford
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
