In a June 10 NTSA Webcast, “A Tech-Driven Approach to Advice,” Tom Lakatos, VP—Branch Development, Lincoln Investment, discussed how to integrate technology into a practice in such a way that increasing efficiency does not come at the expense of effectiveness.
Setting the Table
“There’s a lot of disruption in our industry,” said Lakatos, highlighting several factors behind that.
- fee compression;
- the asset management function being commoditized;
- regulations that create the requirement that fiduciaries provide better advice and service; and
- the emergence of technology as an engagement tool.
Now, said Lakatos, “you aren’t judged against their best financial services, you are judged against their best services.” Furthermore, he said, service providers are compared against competitors’ best digital services.
Urgency
A sense of urgency is one thing that advisors find hard to drive, Lakatos remarked. But he indicated that the it is just what is needed in the new environment to build a practice, retain and gain clients.
For instance, he warned, when Millennials, Generation Y and Generation Z inherit money from Baby Boomers, they’re going to invest in firms that use technology. How important is that? Nearly $60 trillion important—the amount he said is expected to be passed to heirs, charities and taxes between 2007 and 2061. “If you don’t engage with the children of your clients, they will go to your competition,” he said.
Facilitating Engagement
“How do you engage somebody in our industry in a way in which they engage with the rest of the world?” asked Lakatos.
Lakatos told attendees that he considers cellphones to be real estate. “The idea that my customers can engage with me on their phones—it matters.”
And Lakatos said that he insists on using video in electronic interactions with his clients. “Video matters,” he said, adding, “I want you to see me if you’re my client. I want to bring that trust level up.”
And Lakatos said that he insists on using video in electronic interactions with his clients. “Video matters,” he said, adding, “I want you to see me if you’re my client. I want to bring that trust level up.”
Lakatos called it critical to use social media, and outlined how various platforms are helpful:
- Facebook: shows you how people live and what’s important to them
- Twitter: facilitates access and conversations, brands one’s practice and services
- LinkedIn: opens up networks and creates opportunities for introductions
- YouTube: engages people in the way that they want to be engaged
Best Practices
Lakatos offered ideas on best practices in incorporating and employing technology:
- It is easier to use the telephone to call the client with a headset for audio and encourage your client to do the same; it eliminates the feedback that is sometimes present with internet voice.
- Use a good headset/earbuds to enable hands-free work on the computer. “A bluetooth hands-free headset or earpiece is worth every penny,” Lakatos remarked.
- Be prepared to troubleshoot audio with clients if you use internet audio.
- A second monitor increases your effectiveness. Prepare everything needed and have it open on the second screen in advance and drag to second screen as needed.
- A high definition webcam is an inexpensive value-add. Be mindful of your visual background and try to keep outside noise to a minimum.
- Use a pre-approved PowerPoint template for your initial consultation that can be customized and retained. Use a consistent agenda that is easily turned into a PowerPoint and then saved to the client’s records in CRM. Share the PowerPoint templates with the client after the meeting.
- When possible, use electronic applications and paperwork.
- Be very careful about just sending email/docusigns. Treat it like a face-to-face meeting: schedule time. Review the paperwork as if live. Once the document is enabled for eSignature, send it to the client and have them open it on their end. And walk them through where they have to sign.
The Human Factor
Even though technology is an indispensable tool in building a practice and reaching and serving clients, the fundamental connection still is between people, Lakatos indicated. “There has yet to be an application that can replace a human advisor,” he said. “Advice moves to the core of the client and advisor relationship,” he told attendees. “Tech hasn’t solved for behavior.”
“A Tech-Driven Approach to Advice” is now available on demand.
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