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It occurs far too frequently. You need to change just as customers become accustomed to your technology. It is just how technology works. There will always be improvements and adjustments. The experiences of your clients will be enhanced by properly implemented tech upgrades.
You must be prepared to respond to client inquiries about emerging technologies. Any successful implementation of a new technology depends on effective communication. Customers will want to know how this new technology will benefit them and why you think it is worth their time.
Depending on the issue the new system is designed to address, you will respond differently to each client. Are clients not engaging with your current system? That is the primary indicator of how well a client-facing system is performing. Describe how the new system keeps clients more connected to their money by doing more for them across more channels.
Do clients find it difficult to have a complete understanding of their assets? Does integrating held-away accounts into their portal pose any challenges? If so, you can show them how the new system reliably and clearly displays their entire financial picture in a single location.
Start slow
Select a small sample of customers to test new technology before expanding it. A big rollout to your entire client base increases the magnitude of any mistakes and glitches. When you have large client bases of 100 or even 1,000, start with several smaller test groups of around 10. Use them to determine how much time and effort are needed to support each client. By doing this, you can divide the remaining clients into rollout groups that will not tax your resources too much.
For smaller client bases fewer than 100, a single test group of 10 or so will do the job. Poll the test group to learn more about how the new technology is being applied and consider your communication to clear up any misunderstandings. After that, apply what you have learned to managing the remaining clients.
Get support
When working with people and technology, there will inevitably be issues. The last thing you want to do is become your clients' Geek Squad. If possible, find a trustworthy partner to offer your clients direct tech support.
Too often, advisors don’t think through the stages of introducing new technology. Either they assume it will be a nightmare and never start. Or they assume it will be easy, and they’re unprepared for built-in challenges. Planning for both the rollout and ongoing support will ensure the process is as smooth as possible and the work is minimized.
How do you measure success?
Over time, how will you know if the new technology you introduce to your practice is worth the investment?
The value of technology is decreasing stress on the advisor and increasing the engagement and satisfaction of the client. You can tell if you have more time for client interaction and scaling your practice. How can you tell if your clients are happy?
A simple measurement we use at Blueleaf is “engagement rate.” That means calculating the percentage of your clients engaging with your platform monthly. Note how that rate changes before and after a new tech rollout. The industry standard is typically 10%–15%. With today’s technology and the ability to automate client outreach, the client engagement rate should be closer to 70%–80%. Clients who are more engaged with their advisor tend to be happier and more focused on the long term.
John Prendergast is CEO and co-founder of Blueleaf, a leading all-in-one platform for RIAs and broker-dealers to deliver exceptional advisor and client experiences while simplifying operations. John also co-hosts The Augmented Advisor podcast, featuring industry leaders sharing tools and insights to succeed in a digital world.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
