When you consider the last five years in the financial planning industry, what are the main themes that come to mind? What about the last 10 years? For me, technology is at the top of the list. We're seeing fintech tools being launched left and right, and now companies are looking to use AI to optimize efficiency in workflows.
Of course, this is not a concept unique to financial services. On an average day, I'm met with chatbots answering customer service requests, Google Home controlling my thermostat, and incredibly accurate product marketing following me around the internet. After all, AI is not necessarily a bad thing. But there are aspects of life – and work – that it simply cannot replace.
In the financial planning industry, we are tasked with a big job: We must efficiently understand our clients' future goals so we can implement strategies that will help them achieve them. This requires getting to know people as human beings, asking good questions and listening – really listening to their answers. In this aspect of our work, human connection is essential.
While human relationships are the backbone of a financial planner's success, there is a time and a place for technology to complement the personal relationships you are building with your clients. Here are some ways to focus on strengthening customer relationships while relying on technology as support.
Combining art with science
Human connection is the most critical component of a successful customer relationship. Establishing trust and developing meaningful communication are keys to thriving long-term relationships. While human connection is the art that makes relationships thrive, there are also many opportunities to add science to improve the overall customer experience.
Years ago, financial planning was simply a manual process with a lot of room for human error. Combining the right technology with a strong human connection is a recipe for success for both clients and planners.
Make merging more convenient
The topics we deal with every day can be stressful for our clients and they lead busy lives. Reduce stress by structuring meetings in an environment that works for clients. Distance dating has become more popular and works very well.
Technology has become an important component of these meetings, where everyone is on video to ensure that the ever-important body language is read by all parties. While in person is likely to always be the preferred meeting method, this alternative saves clients considerable time. Technologies such as Calendly and Bookings also reduce the chance of getting a bunch of appointments, giving clients access to calendars to find a day and time that fits everyone's schedule.
Communicate proactively
If you're waiting to hear from your customers, you'll probably only hear when they're frustrated, confused, or anxious. Prioritize proactive communication to stay ahead of potential problems and keep you top of mind for customers. This means they are more likely to keep you informed as they navigate any number of financial considerations throughout the year.
Proactive communication can be as simple or as sophisticated as your organization has the capacity to deliver, focusing on either broad topics or more targeted material to keep customers informed. Broad topics are a great way to keep us all thinking about financial topics and how our priorities can change based on what's going on in our lives. More focused communication keeps everyone aware of how short-term events can affect the portfolio and strategy.
In addition to keeping people informed, contact often reminds people to connect on personal issues. This is where another impactful use of technology comes into play. Using a customer relationship management system to document your customers' current top financial priorities is a great way to ensure you're always keeping their most important issues in mind.
As technological advances continue to grab headlines, it can be extremely tempting to explore every new product that hits the market. But in a world obsessed with rapidly evolving technologies, I would encourage those in the financial industry to go back to basics and think about their customers first. If a solution won't ultimately provide a tangible benefit to the client's overall financial well-being, the time to implement a new one might be better spent grabbing a coffee and chatting about life.
Zach Hurst is Vice President and Managing Director of the Chattanooga, Tenn., office of The Trust Company of Tennessee, which is headquartered in Knoxville, Tenn.