For a monetary advisor and their new shopper, the primary yr working collectively generally is a significantly intense interval, usually involving a number of in-person or digital conferences. After this primary yr, although, the variety of scheduled conferences usually declines, usually together with just one or two formal conferences per yr to verify on progress towards monetary objectives and reply questions.
Past these formal conferences, although, advisors nonetheless usually search to create further shopper touchpoints – interactions that may be both personalised (like one-on-one telephone calls) or standardized (like newsletters despatched to all purchasers). These touchpoints convey the continuing worth the advisor affords between conferences, significantly when purchasers are paying charges on a quarterly and even month-to-month foundation.
In analyzing how these shopper touchpoints have an effect on advisor productiveness, the 2024 Kitces Analysis on How Monetary Planners Truly Do Monetary Planning discovered a optimistic correlation between the variety of touchpoints and common income per shopper. Within the research, advisory groups with lower than $5,000 in common income per shopper reported a median of 14 annual shopper touchpoints, and people with $12,500 or extra in common income supplied a median of 20 touchpoints. Which means that advisors might provide extra touchpoints when purchasers are paying increased charges, and that these purchasers might also count on extra frequent engagement.
The revenue-per-client knowledge additionally means that advisors aiming to maneuver ‘upmarket’ might profit from providing extra frequent touchpoints – particularly since purchasers paying increased charges usually count on extra engagement. Nevertheless, shopper touchpoints aren’t nearly amount – the sort of touchpoint being supplied additionally issues. For instance, whereas personalised shopper telephone calls require important advisor time, standardized codecs like newsletters or webinars can provide worth extra effectively – and never each touchpoint format must be individualized to be efficient.
In its examination of shopper touchpoint methods, the Kitces Analysis Research on Advisor Productiveness means that advisory corporations are likely to cluster into three broad teams primarily based on the frequency and kind of touchpoints they ship: 1) Personalised Low Contact (about 10 touchpoints, primarily individualized via telephone calls or private emails; 2) Personalised Excessive Contact (greater than 20 touchpoints primarily individualized), and three) Standardized Excessive Contact (greater than 20 touchpoints, primarily delivered via standardized means like shopper newsletters or webinars). Notably, service groups utilizing a Standardized Excessive Contact method are likely to report increased income per advisor than these utilizing both Personalised Low Contact or Personalised Excessive Contact approaches. This seems to be due partially to the flexibility to supply a larger variety of touchpoints (linked to increased income per shopper) utilizing much less advisor time, liberating up workers capability for different obligations.
Companies contemplating a shift to a Standardized Excessive Contact method can begin by evaluating which kinds of shopper communication really profit from a extra personalised method – and which could possibly be standardized with out sacrificing shopper engagement. As an illustration, an advisor would possibly maintain a webinar addressing frequent shopper questions somewhat than repeating the identical solutions throughout a number of telephone calls. Or, asynchronous video communication might permit advisors to supply private responses with out the necessity to coordinate schedules with the shopper. Additional, corporations with a high-touch providing can manage their shopper touchpoints into a transparent, digestible format (e.g., a shopper service calendar) to assist purchasers perceive the complete scope of what is obtainable and what to anticipate all year long.
Finally, the important thing level is that by providing further standardized touchpoints – within the codecs that their purchasers discover most dear – advisors can strengthen shopper engagement and satisfaction (doubtlessly main to raised shopper retention figures and extra shopper referrals) with out overextending themselves!
