This article is focused on Australian-based Financial Advisers. However, the concepts and methodology for dealing with a need for increased client communication will be invaluable to all professionals.
It has been nigh on impossible over the last month or so to be in the Financial Advice industry in Australia and not be surrounded by talk of FOFA (the Government’s Future of Financial Advice reforms). It really is the hot topic on everyone’s lips and rightly so – it is a massive change for many businesses, both in a philosophical sense and from an operations point of view as well.
As we regularly mention through our blog, Social Media is not just a great way of finding new clients – many don’t give Social Media the kudos it deserves for helping you manage and add value to numerous client relationships at once, and help drive significant service efficiency in your business.
So whilst we have no control over the legislation (although sometimes it would be nice to!), this week we would like to offer our tips for using Social Media and digital communications to help you charter the waters of FOFA come July 1.
Tip 1 – Explain the Fee Disclosure Statement (FDS) to clients via video
Over the course of the 2013/14 financial year, you know your clients will be receiving a FDS. So don’t leave them in the dark with what this means and why they are receiving it… get on the front foot and produce a video for clients to explain what this document is.
This will deal with any confusion and negativity from clients upfront and also avoid them calling your office to ask what this statement is that they just received, or having to remind them of the reasons and details for the statement if provided to them in person.
Don’t forget, this video is also another great ‘touch-point’ between you and your clients. They will really appreciate your proactivity. We know for a fact that video is more engaging and personal for clients of all ages.
Tip 2 – Answer common clients’ questions about the FDS before they ask them
Many of you will know we are huge advocates of answering frequently asked questions in your business using video. Not only is it a far more engaging way to address client queries compared to written text, but it can also build an enormous amount of efficiency in your business (as your staff aren’t spending time answering the same questions over and over again each day).
So get your team together, and brainstorm the questions you think you’ll be asked by clients after 1st July this year. Record videos to answer these questions and as new ones pop up over time, answer them on video as well. Be sure to store these videos in a place (such as YouTube) where your clients can find them easily and your staff can share them readily.
This is also a great way of answering client queries in a consistent and thorough manner.
Tip 3 – Use Social Media to be a bigger part of your clients’ lives
It is fair to say that many Advisers are concerned about having to regularly remind clients of the fees they are being paid. But when it boils down to it, the Advisers who are worried about this are really just worried their clients don’t understand what they are receiving in exchange for their money every year.
That’s not to say that many Advisers aren’t providing their clients with value… but it sometimes is difficult to explain and reinforce this to clients.
And the good news is that Social Media (and video in particular) provide us with an ENORMOUS opportunity to articulate our value to clients! This works in a number of ways;
- Your clients are on Social Media platforms such as Facebook, LinkedIn and Twitter. If you are also on these platforms and engaging in conversations and discussions regularly, you will be in constant contact with your clients. In their mind, you are ‘everywhere’ and a valuable resource in their lives.
- By producing regular video updates (whether that be on Social Media or via regular emails), clients are seeing and hearing from you more often. This will not only deepen your relationships with them, but also provides you with a great opportunity to consistently reinforce your value. Educating clients on what you do as an Adviser on an ongoing basis in many respects will help them understand why they are paying you fees.
And the great bit for you is that all of this adds up to clients feeling more connected with you than ever before. This will mean that when they receive the FDS, they won’t even question what’s in it!
Don’t let your clients articulate your value for you… as a professional Adviser, that’s your job. Use Social Media as it should be used – to educate and deepen your relationships with your clients and make the value you offer them crystal clear.