For a monetary advisor and their new consumer, the primary yr working collectively is usually 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, typically 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 typically search to create further consumer touchpoints – interactions that may be both customized (like one-on-one telephone calls) or standardized (like newsletters despatched to all purchasers). These touchpoints convey the continuing worth the advisor gives between conferences, significantly when purchasers are paying charges on a quarterly and even month-to-month foundation.
In inspecting how these consumer touchpoints have an effect on advisor productiveness, the 2024 Kitces Analysis on How Monetary Planners Really Do Monetary Planning discovered a constructive correlation between the variety of touchpoints and common income per consumer. Within the research, advisory groups with lower than $5,000 in common income per consumer reported a median of 14 annual consumer touchpoints, and people with $12,500 or extra in common income provided a median of 20 touchpoints. Which means that advisors might supply extra touchpoints when purchasers are paying larger charges, and that these purchasers may additionally 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 larger charges typically count on extra engagement. Nonetheless, consumer touchpoints aren’t nearly amount – the kind of touchpoint being provided additionally issues. For instance, whereas customized consumer telephone calls require important advisor time, standardized codecs like newsletters or webinars can supply worth extra effectively – and never each touchpoint format must be individualized to be efficient.
In its examination of consumer touchpoint methods, the Kitces Analysis Examine on Advisor Productiveness means that advisory companies are inclined 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 by way of 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 by way of standardized means like consumer newsletters or webinars). Notably, service groups utilizing a Standardized Excessive Contact method are inclined to report larger income per advisor than these utilizing both Personalised Low Contact or Personalised Excessive Contact approaches. This seems to be due partly to the flexibility to supply a larger variety of touchpoints (linked to larger income per consumer) utilizing much less advisor time, liberating up employees capability for different tasks.
Companies contemplating a shift to a Standardized Excessive Contact method can begin by evaluating which kinds of consumer communication really profit from a extra customized method – and which may very well be standardized with out sacrificing consumer engagement. As an example, an advisor would possibly maintain a webinar addressing frequent consumer questions relatively than repeating the identical solutions throughout a number of telephone calls. Or, asynchronous video communication may enable advisors to supply private responses with out the necessity to coordinate schedules with the consumer. Additional, companies with a high-touch providing can set up their consumer touchpoints into a transparent, digestible format (e.g., a consumer service calendar) to assist purchasers perceive the complete scope of what is out there and what to anticipate all year long.
In the end, the important thing level is that by providing further standardized touchpoints – within the codecs that their purchasers discover most respected – advisors can strengthen consumer engagement and satisfaction (doubtlessly main to higher consumer retention figures and extra consumer referrals) with out overextending themselves!
