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Client expectations are higher than ever.
Why? Simple – the ubiquity of streamlined digital services has raised the bar. Companies such as Amazon, Apple, and Uber invest millions in their user interfaces, digital capabilities, and customer service programs every year, all in an effort to optimize the way people interact with their businesses. After years of acclimating to these consumer-centric models, clients expect their advisors to deliver convenient, hyper-personalized services as well.
McKinsey has found that many clients prefer a one-stop shop for wealth management. A 2023 survey found that 47 percent of wealth management clients prefer to consolidate financial services with one provider. As advisors, we need to let those expectations guide us toward a more client-centric model that increases loyalty and retention.
That’s not as easy as it might sound.
According to McKinsey, 70 percent of all organizational change efforts fail, and the most common reason for failure is a combination of employee resistance and management behavior.
For example, let’s say an advisory firm is struggling to bring in new clients and management decides that a total overhaul of the firm’s outreach strategy is in order. The revised strategy requires the firm’s support staff to be more involved than ever, and management implements new, closely-tracked KPIs and weekly meetings to make sure that everyone is doing their part.
The initiative fails miserably.
That’s because the firm’s management team forced a new system (which came with more work) on their support staff without getting their buy-in, and the rest of the firm felt micromanaged and disconnected from their roles.
To make an organizational change effort stick, you have to start with the people, not with KPIs or quotas. If you want to move your firm to a client-centric model, you need to consider influencing factors such as your organizational structure and culture, the way employees feel about their work, and how management feels about shaking things up. Otherwise, you’ll end up with a discordant team, unmotivated employees, and leaders who don’t lead.
The value of archetypes
McKinsey has suggested that archetyping may be useful in times of change. Employees and management may be designated as eager to learn (champions) or resistant. Resistance may be due to comfort with status quo or skepticism about proposed changes – and the same issues may impact management’s attitudes.
You can use archetypes to partner people or departments who are eager to be part of creating a client-centric wealth management model with those who may need some encouragement to jump on board.
Here’s an example of how it might work:
- Survey current clients to establish an understanding of what they want and need from you.
- Use what you learn to rethink internal and external communication. For example, how will leaders communicate with advisors or advisory teams? How will client-facing employees communicate with clients?
- Draft process and initiative changes that align with your company’s capabilities and suit your clients’ needs.
- Get employee buy-in by partnering champions with those who are resistant to change.
- Choose metrics and KPIs to measure the success of your new model and modify it if necessary.
Notice how the KPIs come after client feedback, clarity among leadership, communication, and employee buy-in.
Now that you’ve devised a client-centric advisory model, it’s time to think about implementation. The model may be new, but your current clients are the best place to start.
While survey responses can tell you a lot about your current clients, the only way to uncover what clients need is to talk to them.
