5 Ways Wealth Management Firms Can Improve the Client Experience

The importance of client experience in wealth management can’t be understated. As the landscape grows more competitive, firms that embrace technological innovation, personalization and the digital experience have a distinct edge. Attracting and retaining wealth management clients requires not only an agile, but also an adaptive approach.

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Why Client Experience Matters for Wealth Managers

Ensuring wealth management clients have a positive experience is a key part of your firm’s success. Clients who feel understood, appreciated and valued are more likely to remain your clients over the long term,

Experience also matters for growth. Satisfied clients can generate more referral traffic for your firm, which can bring in more assets under management, and more revenue. They can also act as a bridge to the next generation if you work with wealthy clients whose children or grandchildren will eventually need a financial advisor.

Losing clients to other wealth management firms can directly affect your bottom line, and it happens more often than you might think. A survey of advisory clients found that among individuals with $500,000 or more in assets under management, 28.7% have switched advisors since 2020.

The bottom line? Improving user experience may reduce the likelihood of your clients looking elsewhere for financial advice.

5 Ways to Improve Client Experience in Wealth Management

Creating a better client experience means putting the client front and center. Here are five effective ways to turn the focus on clients while providing value.

1. Prioritize Personalization

Wealth management clients are not just numbers, they’re individuals with specific values that guide them on their financial journey. And the client experience you offer should reflect that.

Ask yourself how well you know your clients, beyond what the numbers tell you. For instance:

• What are the values or beliefs that drive their financial decision-making and goals?
• Are they more hands-on or hands-off when it comes to directing their wealth management strategy?
• If they have assets held away, what’s the reasoning behind that choice?
• Is a wealth transfer to children or grandchildren on the table, or do they plan to use some or all of their wealth to fund philanthropic giving?
• How do they prefer to communicate?
• What are their financial fears or concerns? What inspires or motivates them?

If you don’t know the answers to these questions, that’s a sign that it’s time to sit down with your client for a chat.

2. Embrace Digital Innovation

Technology is changing the client experience in wealth management by offering solutions to simplify the process and save time. Successful wealth advisors recognize the value of digital tools and their role in creating a better client experience.

Here are some of the ways you can leverage tech to appeal to your clients:

• Automate as many tasks as possible in your customer relationship management (CRM) software to streamline new client onboarding.
• Offer an online client portal or dashboard that allows them to view all of their financial accounts in one place.
• Utilize portfolio visualizer tools to create charts or graphs illustrating potential investment outcomes.
• Develop an advisor newsletter to keep clients in the loop about the latest market trends or financial news.
• Ensure that your firm’s website is accompanied by a user-friendly, highly functional mobile app.

Embracing digital innovation also extends to your marketing strategy. Social media is one piece of the puzzle; email marketing is another. Both create opportunities to interact with clients, build trust and develop relationships.

3. Be Available

Wealthy clients may want the ability to reach out to you whenever they have a question or concern. Taking a multi-channel approach to communication allows clients to stay connected in ways that align with their preferences.

Consider where these channels fit into your firm’s communication plan:

• Social media
• Email
• Phone calls
• Texts
• Online chat or direct messaging

Establishing a communication policy can set client expectations for response times, while ensuring consistency and compliance with requirements.

4. Ask for Feedback

One of the most effective and direct ways to improve client experience as an advisor is to simply ask your clients what you could be doing better.

You can ask clients for feedback directly, or ask them to complete an anonymous satisfaction survey. Allowing for anonymity may encourage clients to speak more freely about what they do or don’t like.

Here are some sample questions you might ask:

• How satisfied are you with the level of service you receive?
• Do you feel the fees you pay are justified by the services we provide?
• How satisfied are you with your advisor’s level of expertise and knowledge?
• What is one thing you would improve about our firm if you could?
• How likely are you to refer our firm to friends and family?

Once you’ve collected surveys from clients, review them to see where the responses overlap. That’s a clue to what you may need to improve to deliver a better client experience.

5. Show Your Appreciation

Clients want to feel that they matter to you, and appreciation events can help you express this sentiment.

Appreciation events allow you the space to engage with clients on a more personal level. When brainstorming client event ideas, consider your clients’ interests and hobbies. Is there something they’re passionate about? Something they’ve mentioned wanting to do that they haven’t had a chance to do yet?

Think outside the box to produce something fun and memorable that your clients won’t be able to stop talking about.

Frequently Asked Questions (FAQs)

What Is Client Profiling in Wealth Management?

Client profiling means understanding who your clients are, where they are financially, and where they want to be. Creating detailed profiles for each client you work with can help you better understand their needs and what role you’ll play in shaping their financial plan.

Why Does Client Experience Matter for Wealth Managers?

Client experience matters because satisfied clients are more likely to remain your clients for the long term. It’s difficult to build a successful wealth management firm when clients switch advisors because they’re dissatisfied. The client experience you offer can directly influence retention rates and loyalty.

What Do Clients Want From Wealth Managers?

Wealth management clients want reassurance that their assets are in good hands. They want to work with wealth managers who fully understand their situations and are equipped with the expertise to guide them toward their goals. More importantly, they want to be treated as people, rather than numbers.

Bottom Line

Client experience is something wealth managers should take seriously if they want to grow. These tips can help you refine your approach to offer the best client experience possible.

Tips for Growing Your Advisory Business

• Clients increasingly turn to online searches to find financial advice. If you’re looking for a way to streamline your digital marketing plan, you may consider working with an advisor marketing platform. SmartAsset AMP uses a holistic approach to help advisors grow. Schedule a demo to learn how you can leverage it to save time for your business.
• Security and data privacy are critical concerns for wealth management clients. Reviewing your firm’s data privacy and security policies, including your cybersecurity plan, can help you address any potential weak spots while ensuring compliance with regulatory guidelines.

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