Advisors would love to conduct business in the “traditional manner,” and meet in person with clients as opposed to video chat or other online tools, according to new research by Hartford Funds.
But as society demands more always-on interaction, they’ll have no choice but to embrace virtual communication methods—or risk losing business.
Despite innovative platforms like Skype and FaceTime, which can be used to simulate face-to-face conversations, the vast majority of advisors still prefer the real deal. Data show almost three-quarters (73 percent) would rather meet with clients and prospects in the flesh.
Just 12 percent think virtual meetings are the best option.
When they do resort to using technology to communicate, most advisors choose to do so via LinkedIn. Just under three-quarters (74 percent) ranked the business networking tool within their top three most-used platforms.
Twitter and Skype were cited as the next most-used by an almost equal number of respondents. The Hartford Funds survey found 45 percent of advisors prefer Twitter and 43 percent favor Skype.
“Effective, consistent communication is the bedrock of the advisor-client relationship and a strategic imperative in human-centric advising,” Julie Genjac, managing director of Strategic Markets at Hartford Funds, said in a statement. “As advisors thread the needle and both communicate more frequently and meet in-person, it’s essential that they embrace firm-approved digital alternatives (like video chat) that allow for more regular, face-to-face interactions.”
Further driving the point home, three out of five advisors say they are communicating with clients on a weekly basis, whether to talk investments or just check in. Almost all (96 percent) foresee this level of interaction continuing for the next five to 10 years.
Another two in five anticipate that the frequency of communication will actually increase in coming years—by as much as 50 percent or more—effectively eliminating the option to conduct all business in person.
So, what are advisors spending all this time chatting with clients about? Many are attempting to add value to their service by discussing topics above and beyond what they would generally cover.
“Over half of advisors (53 percent) reported hosting group informational sessions (regarding trending investment topics, market updates, technology, and other subjects) at least quarterly, and three-quarters (75 percent) do so annually,” Hartford Funds said in its report.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
