Research shows client intimacy and engagement are key for advisers to attain business growth and overcome many current challenges, according to a white paper by BT.
In the report, titled What's on advisers' minds in 2016, the company said advisers are facing a raft of changes this year that present both threats and opportunities for their businesses, including new education standards and the rise of robo-advice.
Research by CoreData, however, suggests that client satisfaction and engagement is one area that advisers can leverage to grow their businesses.
According to the researcher's Keys to Growth Report, clients who have regular contact with their financial advisers are more likely to be loyal customers.
The research also found client engagement is enhanced when advisers deliver value through a combination of three channels. These include email, the preferred communication channel, followed by face-to-face and telephone communication.
"Respondent comments suggest personalisation of communication in terms of relevancy facilitates greater client engagement," the white paper states.
However, while client engagement is an important source of growth, advisers also need to look beyond the traditional 'four pillars' of services in order to stay afloat.
They should look to offer debt and cash flow management – in addition to superannuation, insurance, retirement planning and managed funds investing – as ways to engage with younger clients.
Aged care is also an important area of service.
"While they continue to focus heavily on strategic investment advice, asset allocation and portfolio construction, advisers are recognising that wealth management and wealth creation principles like budgeting, cash flow management and debt management can create value for clients regardless of what is happening in the markets," the white paper states.
"Financial advisers that don't undertake the necessary training to be able to offer aged care strategies risk losing their clients and their families to advisers or super funds who can partner with them across every life stage."
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 10:41Bitcoin 'dangerous and speculative', says MagellanBy Tim Stewart
- 20 Sep 2017ANZ calls for adviser transparencyBy Killian Plastow
- 20 Sep 2017Labor slams mooted ASIC appointmentBy Aleks Vickovich
- 20 Sep 2017‘Modest start’ for Australian super fundsBy Jessica Yun
- 20 Sep 2017Education stress understandable, says AFABy Killian Plastow
- 20 Sep 2017Resisting change will ‘destroy’ business valueBy Staff Reporter
- view all