The nice people at ByAllAccounts, the data and research aggregator, released an insightful report titled “What Wealthy Investors Want Most (and aren’t getting) from Their Financial Advisors”. Its findings won’t make good reading for most financial advisors, but for forward thinking and innovative advice companies it does provide the route to staying ahead of the competition.
In short, the report finds that most clients feel neglected and let-down by their financial advisors. (Click to tweet)
The solution is to make sure you communicate regularly, and the easiest way to do this is to produce a regular investment newsletter.
Are you neglecting your client?
The report from ByAllAccounts has some startling findings:
- 75% of high net worth clients say they don’t hear enough from their advisors about economic changes, information of interest, and new investment ideas
- 83% felt that their advisor could do more to ‘make time for me’
- 71% wanted their advisor to remember ‘family and career’
- The majority of investors like to have informed discussions about investments and markets with friends, family, and advisors
- High net worth clients increasingly want to know about non-traditional areas such as real estate and precious metals
- 25% of high net worth clients believe advisors could communicate better during big economic events
All in all, the report’s findings (which aggregated the key data from surveys by SpectremGroup and Millionaire Corner) are a damning indictment of the communicative incompetence of the financial advice industry.
Do you fit into the category of a neglectful advisor? Ask yourself a simple question: “Do we speak to our clients regularly and often, or do we wait until the time of the annual review to get in touch?”
Communicate better with an investment newsletter
An investment newsletter is a great relationship building tool, and for some firms the newsletter also offers scope as a valuable revenue generating business itself.
Newsletters have evolved greatly since they were first produced. Email and the Internet has given financial advice companies the ability to engage with current clients and enlist new clients with immediacy. The Internet has also reduced costs of sending newsletters to virtually zero.
When newsletters were first emailed they were a bland, one page affair in the body of the email message. Things have moved on tremendously. Today, newsletters are often sent as PDF attachments to emails, or as a link to a downloadable document. Gone is the monotonous black and white conversation, replaced by newsletters that are more like magazines – benefitting from colour images, fancy fonts, and clickable content.
An investment newsletter can also be a fantastic marketing tool – something that the majority of financial advice firms neglect. Most wait until a client has signed up before adding them to the mailing list. By offering the opportunity to sign up for an investment newsletter, a financial advisor can collect an email address. This now becomes a warm lead – you know the person is interested in your company and the products it offers.
5 benefits of an investment newsletter in brief
Today’s most progressive and best known brands use newsletters as their number one relationship marketing tool. It’s not hard to understand why when you quantify the benefits, which include:
- Retention of existing clients
- A marketing tool to introduce new clients
- Informs and educates
- Cost effective and immediate
- Encouraging engagement and contact on your terms
Before you start writing your investment newsletter…
Okay, by now you’re probably eager to get that first newsletter written and emailed. But it’s not quite that easy. You’re going to need to plan your content, and think about how often you will publish. It’s a big commitment. In my next post in this series about investment newsletters, I’m going to look at how you can avoid the common mistakes that are made in the writing and production of an investment newsletter.
Blogs in the investment newsletter series
How to Create Your Investment Newsletter Template