FAs Need to Be More Engaging and Offer Actionable Advice, Survey Finds
Many financial advice clients feel that their advisors are providing them with information that’s relevant to them — but less than a third of clients find the information from their advisors to be actionable, according to a recent survey.
While 53% of respondents say that the investor communications they receive are “personally relevant,” fewer than four in 10 say these communications are engaging, according to a survey by the fintech firm Broadridge Financial Solutions.
And fewer than three in 10 respondents found these communications “actionable,” according to the survey of 502 individuals working with a financial advisor.
“There is an opportunity for advisors to reconsider the content they distribute to clients in order to strengthen relationships,” Broadridge writes.
But advisors should be able to strengthen their relationships with clients via social media. Eighty-nine percent of millennials and 59% of Gen Xers are fine with their advisor following them on one or more social media platforms, according to the survey. Facebook is the platform clients are most comfortable using to engage with their advisors, with 61% of millennials, 38% of Gen Xers and 19% of baby boomers reporting being open to having their advisor follow them on the network, Broadridge found.
In addition, the survey found a complex relationship between clients and advisors who leave their firms. While only a third of millennials and 39% of baby boomers would stick with the firm if their advisor jumped ship, that figure jumps to 47% for Gen Xers, Broadridge found. What’s more, the name of the company matters more than the advisor in many cases: 47% of Gen Xers and 42% of millennials say the firm’s reputation is more important than the advisor when deciding with whom to do business, according to the survey.