NEXT CHAPTER

Steve Gresham

Beware the shiny tech objects . It ’ s old-school training that rules productivity .

VERY DAY , THERE ARE HUNDREDS OF NEWS ITEMS EXtolling the virtues of new fintech . There is a dizzying array of tools flooding the advisor market . I am envious of those who can choose wisely among them .

And yet this software doesn ’ t quite capture the feel and efficiency of the advisor-client experience . Is that a problem with the software ? Or with the users ?

I don ’ t want to discourage innovation — bring it on ! But I wonder if we have truly learned how to use the amazing apps and software we already have , or if we keep jumping on emerging fintech as if it were the new iPhone version X . X before we ’ ve figured out half the functionality of the old models .

The center of any technology should be the advisor-client relationship . That ’ s the utopian vision , anyway , one that should prompt simple and easy solutions . Software providers should be enabling your digital relationships , and thus improving your volume of activity , as well as the consistency of your results . When you can string your software together into a customer experience , you see the potential contribution from tech adoption — and wasteful gaps when the tech is not deployed .

When you ’ re starting to deploy your technology , start with a daily plan and see how it affects your overall results . Your CRM software should have all your client ’ s information loaded and your activities log should show that every day you have “ calls to action .” The average book for every advisor is 125 families . Your CRM should include three to four nuclear family members but also aging parents and adult children for a total potential “ household ” of 30 to 40 accounts with several custodians . Without good software , that ’ s a lot of Post-it notes .

It ' s time to think of your expectations for the customer experience . How many of those households receive a solid annual review ? A midyear review ? How many times do you follow up on the actions you ’ ve taken ? If the industry standard is two meetings a year , can you be sure all 125 families got theirs ? That ’ s 250 appointments with just two meetings for three generations and 30 to 50 accounts . What if more meetings were needed ? If the accounts are for retired people , would that not mean more complexity ?

I remember visiting with one of the country ’ s top wirehouse advisors a few years after managed accounts became mainstream . One of the pillars of this advisor ’ s offering was a quarterly performance and holdings report and a quarterly review with the clients . People loved the transparency and accountability — and consistency .

Walking into the advisor ’ s office , I noticed a flurry of activity in the office next to his . “ They ’ re stacking our quarterly reports ,” he explained . “ We had to get another office to hold them .”

The advisor ’ s practice became buried in meetings with clients . He made changes to balance the load — like setting annual reviews by the client ’ s birthday instead of trying to squeeze everyone into the calendar at the quarter ’ s end . He also merged some account reviews by inviting multiple family members . Both steps opened additional opportunities , but the initial motive was just to save time .

The discipline required for the regular client meetings was an eye-opener to him . “ We had no idea of how little we were talking to clients — and how narrow the conversations were ,” he observed .

This is Practice Management 101 : Our client communication is lacking , and that means there ’ s opportunity if we improve it . The average wealth management client is about 67 and has accounts with four to five firms , but no one firm usually has more than half those assets . Until that reality is altered , advice providers are battling each other in a zero-sum game with really significant implications .

32 | FINANCIAL ADVISOR MAGAZINE | MAY 2022 WWW . FA-MAG . COM