Advisers encouraged to review client engagement strategies
During a period of prolonged uncertainty, advisers need to seriously consider how they engage with their clients and what value they can bring, says Complete Super Solutions.
"We are seeing the more progressive practices look at alternative ways, other than investment outcomes, to add value and on the aspects of client engagement they can control," Complete Super Solutions chief executive Martin Morris said.
"Price reduction is one example of this, but not through the traditional method of comparing platforms and knocking a few basis points off the platform costs."
Mr Morris added that the growth of cloud-based technology and outsourced administration solutions continue to offer viable alternative opportunities for advisers which can assist them in engaging clients "differently and proactively".
"Traditional platforms are becoming commoditised as they fight to get small degrees of differentiation," he said.
"The benefits of a single administration and transaction solution are being eroded as software solutions become more integrated and accessible.
"In addition, accounting and financial planning solutions are becoming closer in their output and, as such, opening up the threat of new competitors as the two sectors converge but also opening up many opportunities," Mr Morris said.
Many practice principals also believe – at a business level – in the same message they give to their clients, he said: "[That] message being it is important to stay in the market and not exit when times are tough; markets will, over the medium to longer term, iron out volatility and offer positive returns.
"This message unfortunately makes many principals apathetic about change and they are holding on to markets once again becoming less volatile, offering a growth trajectory. At that point, clients will not question value and the principal can continue as always," Mr Morris said.
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