Since the introduction of reliable self-service channels in the wealth management sector, some asset managers have been contemplating providing digital investment guidance and direct-to-investor models to obtain a low-cost distribution channel. This strategy has its merits in driving down the average cost per acquisition, but the key challenge is to nurture and retain long-term customers. Could digital channels match the teams of physical advisors in terms of quality ?
Customer service is often seen as a one-way delivery mechanism: something that is provided by people or algorithms. Like social selling on social media channels, is it seen as a broadcast channel to transmit messages to customers. However, customer service, like social media listening, is all about receiving personalized information in regards to customer needs, intentions, preferences and concerns and then using that information to improve retention and loyalty.
Customer service not only supports customers throughout the journey but also gathers valuable information on the drivers of satisfaction with people and products, including reasons for churn/attrition, areas of improvement and supporting trends. While traditionally performed by experienced relationship managers, modern technology allows asset managers to complement or replicate this feedback within the digital channels. In today’s article we discuss a few examples of technology improving processes within the asset managers’ direct distribution or even potentially expanding to an advisory business under the regulated partners’ licenses.
Attributes of Customer Experience
According to a recent KPMG study, asset managers can provide a differentiated customer experience through campaigns that are personalized, transparent and anticipatory.
Whether you intend to create a hybrid or fully digital financial planning journey OutRank®, our financial simulation engine, would power the interactive elements and underlying calculations throughout the financial experience. For example, you can start the conversation with your customer by placing interactive teaser analytics on your website, enticing the potential client to visualize how your services could help them understand how investment in your financial product would change their financial position. If the customer is interested, they could be invited to either contact your team or continue a digitalized journey on your website. OutRank® provides accurate, transparent and fast calculations to power the guidance and advice in the selection of the financial products you provide. Because the software is unconstrained by the type of user interface or the nature of the asset class, it is easy to create a seamless customer experience. Providing visual, pedagogical and interactive digital experiences will keep new customers engaged and motivated to take an active role in their financial planning journey.
Skandia, one of Sweden’s largest insurance companies, implemented OutRank® to get more control over distribution of their services in the digital age. Working together with the Kidbrooke team, the Skandia executives built self-service pension advice and investment guidance journeys. Skandia’s team enjoyed the positive impact that a user-friendly customer interface had on sales, customer satisfaction and customer retention. You can read our case study about Skandia’s vision and their approach to customer engagement here: https://kidbrooke.com/knowledge-base/skandia-building-channel-agnostic-wealth-experiences/
Understanding Individual Customers
Customers who believe that a service provider understands their concerns will be loyal over time. For example, many savers are worried that an increase in inflation might affect their portfolios and receive advice to keep a significant allocation of capital in equities. Subsequently, the regulator may encourage people close to pension age to move away from equities into fixed income. This regulatory messaging may result in confusion and anxiety. With OutRank®, the multiple and perhaps contradictory messages can be ordered, filtered and deconflicted. Using these data points, each customer cohort can receive the right communication tailored to their lifestyle needs and risk appetite. Whether asset managers are distributing directly to customers or indirectly through financial advisers, OutRank® can be used to create customized campaigns.
Action
How can a financial simulation engine help you build loyalty with employees or customers? We believe that helping people understand the investment products in their portfolios and therefore, financial positions, effectively monitor them, demystify complex concepts and become empowered to plan their financial futures will build relationships that endure the test of time.
At Kidbrooke®, we believe in the power of taking small steps today to achieve big goals tomorrow. We ensure that our technology is reliable, user-friendly, and dynamic, so that our clients can tailor it to suit their brand or the brands of their distribution partners.
To learn more about how Kidbrooke® can help you achieve your business goals, please get in touch.
Sources:
https://advisory.kpmg.us/content/dam/advisory/en/pdfs/2020/how-asset-manager-can-transform.pdf
