because the tech is changing the ways financial advice is accessed and delivered , expanding affordability and access for current and new market segments . Not only will this allow smaller firms to compete but to protect their margins .

Service Systems As A Future-Proofing Strategy

We often hear about the threat of fee compression in the advice industry , but the real challenge for today ’ s advisor firm is “ service inflation ”— as clients in every segment ask for advice outside of finance . These shifts don ’ t just squeeze time ; they squeeze profits as advisors strive to offer more service and value to justify their fees .

Covid-19 intensified this by triggering a global re-evaluation of the ways we balance work , wealth and well-being . Also , an additional 1.2 million people retired in 2021 , the year after the pandemic emerged , compared with the average of previous years , and many are seeking financial advice earlier , further fueling demand .

Typically , advisors prepare for client meetings by reviewing CRM notes from previous interactions . Yet every meeting is different , requiring them to give fresh attention to even the most mundane activities . That can leave the advisors and their staff playing an endless game of Whac-a-Mole . Multiply this by hundreds of meetings annually , and the challenge becomes overwhelming .

How can advisors adapt and offer deeper , more efficient services ? The answer lies in a hyper-efficient “ service system ,” in which a firm must clearly define its client types , what they receive and the processes to deliver these services efficiently . Once foundational services are established , you can enhance them with tailored offerings linked to a structured sales process .

A systemized service model optimizes productivity and protects margins . Think of it like a cake with these three tiers :

Standard services . These are all essential services that can be delivered consistently to all clients .

Special services . These are layered onto the standard services according to client need , where advisors give personal attention to their most pressing concerns . Special services would involve automated delivery for specific client segments . For instance , an advisor might automate checking Roth conversion eligibility for clients , prompting those who qualify to schedule a meeting . This removes manual checks while delivering timely , personalized advice .

Research shows that consumers across every segment increasingly want to add holistic services and advice on non-financial topics such as longevity , health , lifestyle and relationships .

For niche advisors , the specialized tier becomes hyper-specialized , where they deliver services that meet the specific needs of their client base . Advisory firms with more general practices may need to create multiple workflows to efficiently serve different client segments . Personal services . These involve hightouch advice that addresses clients ’ personal situations and concerns . The personal tier focuses on what is personal to the client at the moment , ensuring their immediate concerns are addressed .

With the right tech stack and structured service model , advisory firms of any size can deliver these highly specialized services . That will also allow them to deepen client engagement and personalize the client experience . At the same time , they ’ ll become more efficient .

STEPHANIE BOGAN is the CEO and consulting leader of Limitless Advisor Coaching .

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DECEMBER 2024 | FINANCIAL ADVISOR MAGAZINE | 31