Meet Ray the Retiree

Ray is recently retired. While he doesn’t consider himself as tech-savvy, he owns a smartphone and enjoys keeping up with his children and grandkids on Facetime. Over his working life, Ray has accumulated various assets so preserving his wealth for his family is top of mind. How can advisers harness technology to engage retired clients like Ray?

The opportunity

People are living longer and Australia’s ageing population is rapidly increasing. In 2017, there were 3.8 million Australians aged over 65. By 2057, it is projected there will be 8.8 million (22% of the population). They are also one of the wealthiest segments in the population, accounting for 26% of the nation’s wealth.

What they want

For many retirees, financial advisers and accountants are much more than people who help them manage their finances. They’re trusted concierges who help them meet their everyday needs and fulfill their lifestyle goals. As a result, the assistance they provide goes beyond maximising net worth to include social and personal transitions, such as living arrangements and aged care planning.

Outliving their nest egg and costly health issues are real concerns for the over 65 cohort so budgeting and cashflow management are paramount, along with staying abreast of compliance requirements and tax changes.

How to help them:

1. Don’t underestimate their willingness to engage with technology

We live in a world where sharing personal details in exchange for a personalised service is almost second nature. We give Uber our live location to quickly hail a ride and allow Netflix access to our viewing history so it can suggest new TV series we might enjoy. But younger generations aren’t the only ones taking advantage of the benefits technology has to offer.

There is a commonly-held belief that over 65s don’t engage with technology, but this stereotype is beginning to crumble. The biggest mobile usage growth in 2017 came from older users, with a five point increase for 55-64 year olds and a nine point increase for 65-75 year olds.

Even ‘Digital Phobics’ or those that typically avoid using new technology are for the most part already using digital devices to stay connected with their friends, family and grandchildren. In fact, according to a 2015 study by the Pew Research Centre, the majority of seniors surveyed described smartphones as “freeing” and “connecting”.

2. Use visuals to demystify complex data

According to a 2018 study by FactSet,59%of clients find it difficult to understand complex graphs and charts used by their wealth managers so communicating data in a meaningful way can be a challenge. The same study also found data visualisation can help to build trust with wealth investors and can be particularly powerful to engage older clients.

Data visualisation could take the form of a simplified chart showing projected investment income over time or a cashflow breakdown to help clients see how much they spend. User-centric data delivery helps advisers strike the balance between being comprehensive to demonstrate value and presenting information in a way that is easily understood. After all, a picture says a thousand words (or data points).

3. Personalise the digital experience  

If you only take away one thing from this series on how to engage with specific client personas it should be that personalisation is key – and retirees are no exception.

Particularly amongst older clients where digital literacy levels are likely to vary, segmenting clients beyond their personal financial situation to account for their attitudes towards technology can help advisers gain deeper insights and deliver a better, more personalised service.

While not all digital solutions will be suitable for everyone over 65, client facing technology enables advisers to deliver a more scalable service. With features ranging from live balance sheets to system generated wills and tailored Executor Kits, platforms like myprosperity can help advisers scale as they adapt the delivery of their services to meet the needs and tech adoption levels of their retiree clients.

Are your senior clients technophobes or technolovers? How are you adapting your services to meet their needs?

Meet High Net Worth Hilary

Hilary is the ultimate HNW stereotype: she loves yachting, opera and expensive champagne. Of course in reality, high net worth individuals (HNWI) are an incredibly diverse and eclectic group. But they do have some common denominators, such as high expectations when it comes to service and lack of time. So how can advisers deliver an experience to successfully engage this growing market?

While these figures might suggest a decline in the demand for advice amongst HNWs, this does not appear to be the case. According to The Investment Trends “2018 Financial Advice Report” 54% of HNW clients still say they have advice needs, with longevity protection, investment strategy and retirement planning topping the list.

What they want

Unsurprisingly, high net worth clients want a personalised service: a CEB 2018 Client Experience Survey found that 63% of HNW clients highly value advisers who personalise advice. But a personalised service goes beyond that: tailored communications directly relevant to their financial situation and an emphasis on transparency are key to providing a personalised experience.

High net worth clients also value their time. Beyond financial gains, they expect flexibility and simplicity. Advisers who are proactive (such as by keeping an eye on clients’ situations to spot potential problems and opportunities) and provide guidance along with clear explanations around financial decisions, find it easier to build a long-term, trusting relationship.

How to help them: 3 strategies to exceed the expectations of HNW clients

1. Show them everything in one place

Rather than servicing your HNW clients with a mountain of documents, across multiple folders, spreadsheets and logins to investment platforms, save them (and yourself) some time by aggregating their entire financial world in one place where you can collaborate. Whether it’s a carefully organised digital folder or a comprehensive client portal like myprosperity, you’ll both appreciate the transparency and efficiency gains this creates.

Even better, as most HNWIs work with multiple financial professionals, consolidating clients’ finances makes it easy for you to coordinate with their team (in myprosperity, you can invite others into your client’s portal and tailor their permissions via myteam and position yourself at the heart of your client’s financial world.

2. Offer the ultimate flexibility: Go digital

HNW individuals are avid technology users. In fact, according to a Capgemini report, 82.5% of under-40 HNWIs expect all or more of their wealth management to be conducted digitally in the next five years. If you don’t already have a digital strategy in place, now is the time to start.

A personal finance app, such as the white-label one included in myprosperity’s Mobile First Plan can help you position your firm’s premium offering with cutting-edge technology and deliver an exceptional – personalised – digital experience to match.

3. Tailor your services down to the last detail

For many high net wealth clients, it’s not all about money: instead, it’s about what the money can achieve. Whether it’s leaving a legacy for their children or philanthropic giving, understanding what motivates your clients, their goals and challenges, is critical to delivering a personalised service.

Once you’ve spent time understanding their needs, don’t squander that goodwill by sending HNW clients mass email campaigns or generic updates with little relevance to their personal situations. Instead, take them off your primary mailing list and send them fewer but more personalised updates, such as custom monthly reports.

With myprosperity, you can take personalisation a step further with features like the Executor Kit, a tailored, pre-populated document outlining a client’s assets, liabilities, and personal wishes to make things as easy as possible for their executor. The more personalised the service you provide, the more you’ll demonstrate a thorough understanding of their situation and build trust.

Meet Peter the Property Mogul

Peter is a DIY investor. He is a high earning professional who likes to give everything a go and doesn’t shy away from risk. At 45 years of age, he’s an experienced property investor and has recently added his third residence to his portfolio. How can advisers connect and engage with investors like Peter?

The opportunity

Housing is Australia’s single largest asset class. Overall, the value of residential real estate is estimated to be
$6.5 trillion across 9.6 million dwellings. According to the ATO, there are just over
2 million property investors in Australia, with 48% of the nation’s apartment stock likely to be owned by an investor. People aged 50-64 year olds are most likely to own an investment property, yet most residential investors don’t rely on it as their
primary source of income.

 In fact, the 2018 Property Investor Sentiment Survey found that despite the vast majority of Australian investors investing for capital growth, only 38.5% held negatively geared properties, indicating finance is a problem for most.

What they want

As Warren Buffet says “nobody buys a farm based on whether they think it’s going to rain next year; they buy it because they think it’s a good investment over 10 or 20 years.” Investors buy property as a lucrative option to build wealth and deliver great returns over years to come, but to achieve that they need to successfully navigate potential short-term risks, by gaining an understanding of their entire financial situation, and receiving guidance on the best structures for growth.

How to engage

1. Tailor your approach based on investor personality

From detail-oriented investors who only care about numbers to the risk-averse in need of emotional support, you’ll need personalised approaches to engage with these clients.

A popular framework for tailoring your messaging to different personalities is the BOLT framework, as detailed in this blog by software company Broker Engine. The framework identifies 4 personality types and advocates adapting your communication strategy to match.

• Bull – Quick to get to the point, fast-paced, result-orientated, likes challenges, and needs to be in control

• Owl – Considered decision maker, likes detail and order, time conscious, and takes a business-first approach

• Lamb – Slow decision maker, often indecisive, understands mistakes, can be emotional, cares about security, is social but avoids conflict

• Tiger  – Quick decision maker, not into details, often late, cares about prestige & status, likes a challenge, and is very social

Whether it’s building relationships with tigers or providing insurance recommendations to a lamb (or any other personality framework you feel is appropriate), knowing how to position your services in a way that addresses each investor’s unique approach to decision-making is the first step to building lifelong engagement.

2. Articulate your unique value proposition

There has been a 25% increase in financial advisers in Australia in the last 5 years so it’s never been more important to have a unique value proposition to stand out from the crowd. Whether it’s promoting environmentally friendly investments or advising on property investments in SMSFs, a unique value proposition should be tailored to your client personas.

But communicating the value you deliver can be a challenge. Start with a simple statement outlining who your ideal clients are, and what benefits you have to offer them. Then, use frameworks like the “return on life” (ROL) approach, as described in<
this postby investment platform Netwealth, to articulate client-centric value that goes beyond just “return on investment” (ROI).

3. Seize opportunities with a holistic approach to digital

If you’re familiar with the mortgage broking industry, you’ll know how costly the slow execution of contracts can be. In fact, drawing out the contract process can increase business costs by 90%.

Some of these costs can easily be minimised or even eliminated with digital tools designed to streamline the onboarding process. These not only help firms save time and money through increased efficiency, they also help deliver a better customer experience – especially when dealing with process & data heavy clients like property investors.

The key to success is to map out where digital tools can replace existing manual processes, and where they intersect with others you already use. Too many disconnected tools can create a disjointed experience for your staff and your clients, which is why myprosperity integrates with more than 20 technology partners, such as Netwealth, Class, Spotlight and Macquarie to deliver a connected, streamlined experience across the board.

myprosperity helps you create an integrated experience and deliver value to your clients at each stage of their journey. From automating processes such as fact finds to facilitating digital document signing, the wealth portal helps you deliver a holistic digital experience that will delight your clients each step of the way.

Meet High Net Worth Hilary

Hilary is the ultimate HNW stereotype: she loves yachting, opera and expensive champagne. Of course in reality, high net worth individuals (HNWI) are an incredibly diverse and eclectic group. But they do have some common denominators, such as high expectations when it comes to service and lack of time. So how can advisers deliver an experience to successfully engage this growing market?

While these figures might suggest a decline in the demand for advice amongst HNWs, this does not appear to be the case. According to The Investment Trends “2018 Financial Advice Report” 54% of HNW clients still say they have advice needs, with longevity protection, investment strategy and retirement planning topping the list.

What they want

Unsurprisingly, high net worth clients want a personalised service: a CEB 2018 Client Experience Survey found that 63% of HNW clients highly value advisers who personalise advice. But a personalised service goes beyond that: tailored communications directly relevant to their financial situation and an emphasis on transparency are key to providing a personalised experience.

High net worth clients also value their time. Beyond financial gains, they expect flexibility and simplicity. Advisers who are proactive (such as by keeping an eye on clients’ situations to spot potential problems and opportunities) and provide guidance along with clear explanations around financial decisions, find it easier to build a long-term, trusting relationship.

How to help them: 3 strategies to exceed the expectations of HNW clients

1. Show them everything in one place

Rather than servicing your HNW clients with a mountain of documents, across multiple folders, spreadsheets and logins to investment platforms, save them (and yourself) some time by aggregating their entire financial world in one place where you can collaborate. Whether it’s a carefully organised digital folder or a comprehensive client portal like myprosperity, you’ll both appreciate the transparency and efficiency gains this creates.

Even better, as most HNWIs work with multiple financial professionals, consolidating clients’ finances makes it easy for you to coordinate with their team (in myprosperity, you can invite others into your client’s portal and tailor their permissions via my team and position yourself at the heart of your client’s financial world.

2. Offer the ultimate flexibility: Go digital

HNW individuals are avid technology users. In fact, according to a Capgemini report, 82.5% of under-40 HNWIs expect all or more of their wealth management to be conducted digitally in the next five years. If you don’t already have a digital strategy in place, now is the time to start.

A personal finance app, such as the white-label one included in myprosperity’s Mobile First Plan, can help you position your firm’s premium offering with cutting-edge technology and deliver an exceptional – personalised – digital experience to match.

3. Tailor your services down to the last detail

For many high net wealth clients, it’s not all about money: instead, it’s about what the money can achieve. Whether it’s leaving a legacy for their children or philanthropic giving, understanding what motivates your clients, their goals and challenges, is critical to delivering a personalised service.

Once you’ve spent time understanding their needs, don’t squander that goodwill by sending HNW clients mass email campaigns or generic updates with little relevance to their personal situations. Instead, take them off your primary mailing list and send them fewer but more personalised updates, such as custom monthly reports.

With myprosperity, you can take personalisation a step further with features like the Executor Kit, a tailored, pre-populated document outlining a client’s assets, liabilities, and personal wishes to make things as easy as possible for their executor. The more personalised the service you provide, the more you’ll demonstrate a thorough understanding of their situation and build trust.

You’ve signed up to myprosperity and you’re ready to impress clients with a new branded wealth portal. How do you get them all set up?

1. Identify your “early adopters”

Which clients you introduce the portal to first will determine your action plan. You may want to start with existing clients, perhaps those you have a great relationship with, or you may prefer to focus on newcomers by introducing the portal as part of your onboarding process.

Tip: To scale the platform across all your customers, keep it simple by mapping your roll out strategy to how you currently operate. Were you previously managing documents via email? Focus on existing clients by letting them know all their documents will be managed via a secure digital portal moving forward.

2. Promote your portal

Tell your clients all about it: chat to them during your next call or meeting, invite them to an event, or send them an email campaign. Whatever you decide, make sure clients understand what the portal is, how you’ll be using it and what benefits they’ll get out of it.

Tip: The Marketing Hub is packed full of resources to help you promote your portal, including email templates, branded videos and flyers. General introductions can help set the scene, but focusing your promotions around a set of key benefits (pick your favourites!) is likely to yield better results.

3. Invite your clients

Once your clients know about the portal, send them an invitation. You can do so via the Client list in the Partner Portal, or you can send them a personalised email from your inbox with your firm’s custom registration link (grab it from your Marketing Hub). This will prompt them to activate their account.

Tip: Don’t send invitations out cold! Only invite clients after you’ve introduced them to the portal so as to ensure they understand it’s a key part of how you’ll be working with them moving forward.

4. Get them set up

Clients on Starter accounts can set themselves up directly on desktop or mobile via the portal’s built-in setup wizard. When it comes to premium clients and potential Pro users, you may find it more valuable to create a boutique experience by setting them up in person during your next meeting with them. 

Tip: For our financial planning Partners, the portal’s digital fact find feature makes this process a breeze. Get clients to complete it in their own time, or go through it in person during a meeting. Any information entered will automatically be reflected in the client’s portal!

What’s the key to a successful onboarding strategy? A tailored approach that factors in your objectives and the needs of your clients. Don’t hesitate to run a pilot with a small group, then gradually scale the portal out to the rest of your customer base. And if you need any assistance along the way, get in touch with your Partner Enablement Manager! They’ll be happy to help