The key to adopting the right mode of communication lies in decoding the preferences of your clients based on their age profile.
Once you turn a prospect into a client, you need to constantly engage with your clients to sustain your relationship with them. Whether it is for offering new products, portfolio review, or an informal meet, advisers need to communicate with their clients regularly. However, it is important to know the right medium through which you communicate with your clients. The key to adopting the right mode of communication lies in decoding the preferences of your clients based on their age profile. For instance, did you know that clients between 35 and 54 years of age prefer to receive communication through emails as compared to any other generation?
A white paper published by Association of Financial Advisers (AFA) titled ‘Connecting with Clients – Solving the communication matrix for financial advisers” reveals that client satisfaction was higher when advisers used more modes of communication across all generations. There was a strong relationship between client satisfaction and the number of ways advisors use to communicate.
In this study, Baby Boomers was defined as clients aged between 55 and 74 years, Generation X defined as clients aged between 35 and 54 years and Generation Y as clients aged below 35 years The study examined 20 different communication methods adopted by financial advisors by interviewing 530 clients.
Most preferred mode of communication
Electronic mailers were the most preferred method of receiving ‘one-to-many’ communication. However, Generation Y wanted their communication with advisers via mobile technology, particularly apps. Emails were an important tool for advisors to offer advice and for ongoing engagement than phone calls.
|
Most preferred one-to-one communication across all generations |
% |
|
Personal emails |
36 |
|
Formal meetings at the adviser's office |
22 |
|
Phone calls |
15 |
|
Formal meetings at your home/work |
10 |
|
Informal catch-ups (e.g. over coffee) |
9 |
|
Letters/cards |
3 |
|
SMS |
3 |
|
Skype |
2 |
|
Fax |
1 |
|
Source : Beddoes Institute 2013 |
|
|
Most preferred one-to-many communication method across all generations |
% |
|
Electronic newsletters |
34 |
|
digital/social media |
24 |
|
Printed newsletters |
18 |
|
Printed information packs |
17 |
|
Webinars |
7 |
|
Source : Beddoes Institute 2013 |
|
Baby boomers
The biggest generational difference existed in face-to-face communication. Baby boomers preferred formal meetings to be held in adviser’s office.
Baby Boomer clients’ desire for personal emails is slightly lower than Gen Y and lower still than Gen X.
A formal meeting at their adviser’s office is the main way that Baby Boomers like to have face-to-face meetings.
In fact, preference for informal catch-ups (e.g. over coffee) and formal meetings at home/work is very low for baby boomers compared to other generations.
Generation X
The study showed that preference for personal emails was higher than formal meetings across all generations but especially among Gen X clients who typically have less time.
Consistently, Gen X are less inclined to want formal meetings in their adviser’s office compared to other generations although this is still the most preferred method of meeting face-to-face
Generation Y
The youngistan want to catch-up informally with their advisers more so than meeting formally in their office. Thus, the study suggests that advisers need to re-think how they do business with generation Y.
Gen Y clients’ want personal emails slightly less than Gen X clients, although this is still the most preferred form of personal one-to-one communication for this generation.
The white paper was authored by Rebecca Sheils, Psychologist, Dr Adam Tucker, Director, Beddoes Institute, Brad Fox, CEO of the Association of Financial Advisers (AFA), Richard Dunkerley, Head of Marketing for Zurich Life and Investments.
Source : AFA white paper
