It’s clear that today’s customer purchase experience is wildly different from how it was even just a decade ago. Whether you’re buying a new TV or choosing a service provider, what used to be a mostly linear experience based on a trusted recommendation is now influenced by information from a variety of sources and from multiple communication channels. Thanks to the internet and smartphones, access to information has never been easier or faster.
Every industry has been affected by these incredible changes. In financial services, online do-it-yourself and robo-advice options are attracting more and more consumers, causing consternation throughout an industry built on the backs of human financial advisors and wealth managers.
But what about the coveted high net worth (HNW) segment – those with investable assets more than $1 million, excluding their primary residence? Do they prefer high tech, or high touch?
In a new white paper released today, LinkedIn aims to answer this question. In partnership with consulting firm Greenwich Associates, the company conducted a study of high net worth individuals (HNWIs) to learn more about their customer journey when selecting – and staying with – a wealth manager, and technology’s role in shaping that relationship.
The research largely echoes Hearsay’s message and mission all along. Key findings include:
Having a digital presence is critical, especially during the consideration phase. We often say that if you’re not easily findable and accessible online and digitally, you might as well not exist.
- 66 percent of HNW Generation Xers found social media profiles of their wealth managers to be extremely influential
- 1/2 of HNW millennials check out an advisor’s social posts
- Email is the preferred method of contact for ongoing updates
Face to face and ‘in person’ are still important. HNWIs want the human touch to develop a relationship with their wealth advisor, especially during the onboarding and planning process.
- 2/3 of respondents have in-person meetings when creating an investment plan
- 60 percent of HNW millennials value in-person meetings
Real-time communication is key during moments of market volatility, particularly for millennials. More than other generations, millennials want access to real-time information from their wealth manager. Advisors can efficiently accomplished this through digital channels such as social, email and text.
- 78 percent of respondents prefer receiving investment recommendations from their wealth manager
- 53 percent prefer market news
- 75 percent say staying informed about timely news updates is the most valued social media interaction from their wealth manager
Additionally, Hearsay customer success executive Weifang Zhu moderated a panel this morning where industry leaders gathered to discuss the current and future state of wealth management. Panelists included Jonathan Stein of Betterment, Kameron Rezai of FutureAdvisor, Dan Connell of Greenwich Associates, Menaka Thillaiampalam of LinkedIn Marketing Solutions and Michael Goodman of Wealthstream Advisors.
Read LinkedIn’s blog post and download the white paper for more survey results and to learn engagement strategies to attract, retain and build your HNW clientele in this new multichannel, always-connected era.