Future proof your business with the decisions you make today
Sherise Mercer explores what wealth firms need to consider to evolve their focus on the client experience, their operating model, and staff development to retain and grow their business.
As the wealth management industry in Australia continues to evolve through an extended period of regulatory change and market disruption, the key question facing many advice principals is how the key decisions they make today are going to impact the success of their firms in the future.
In an environment where the total client experience firms deliver is more important than ever, the opportunity exists to embrace even greater client centricity.
Macquarie recently led a group of wealth management professionals to the US to understand how businesses there are changing the way they drive results for clients to enable more superior outcomes and satisfaction.
The tour saw our delegation meet with more than 15 businesses, from leading investment management firms to technology leaders, and draw out a number of key lessons which are highly relevant for our industry here in Australia.
We’re in the experience business
Clients no longer compare companies on simply a like for like basis. Rather, they are comparing all the companies they interact with based on the overall experience they receive.
Businesses need to be thinking about how they can make it easier and more enjoyable for clients to interact with them. In the US, firms are focusing on delivering a seamless experience to clients through both staff relationships and their ability to customise the client experience.
Wealth professionals in Australia face this same challenge. Firms need to be considering how they can evolve their focus on the client experience, their operating model and staff development to retain and grow their business for the years ahead.
A simple place to start is to consider all the various ways clients engage with your business and map out the journeys your clients currently take with your team – how does this experience feel from the client’s perspective? What are the positive elements and what are the pain points? Is the way your team currently spend their day the best use of their time and expertise?
For example, rather than having various specialists and contacts who engage with clients at different points in time, some firms are introducing one key contact who is responsible for the relationship with the client.
This relationship manager then interacts with all relevant internal and external stakeholders to ensure the firm delivers a superior experience and the client is clear on the status of their affairs at all times.
Technology as an enabler, not a challenge
Technology should strengthen the experience delivered to clients, helping them to make informed, conscious decisions about their financial affairs.
As we toured high performing businesses in the US, it was striking how each of them had a clear focus on using technology to systematise various parts of the client experience, in order to free up staff to focus on higher value, more customised experiences.
By reviewing the parts of the business that can be systematised, advisers have the opportunity to focus on building and sustaining relationships, while spending more time concentrating on individual client situations.
For example, we’re already seeing this as Australian firms consider how they execute investment approaches for clients. The growth and integration of comprehensive managed account solutions on platforms is a key enabler of this as advisers can customise, while using technology to systemise, what they do for clients.
Advisers now have the option to access off the shelf separately managed accounts (SMAs) that align with their existing investment approach, partner with a research house to develop a custom SMA or where appropriate, build their own SMA to deliver via their platform.
Regardless of the approach advisers take, the benefits offered by managed accounts include a consistent client experience, greater efficiency and a reduction in paperwork.
Supporting your team to add true value
When the client experience matters more than ever, firms and principals need to be consciously building their teams to make adding value to enduring client relationships a real point of difference.
The role of a leader is evolving in line with this – it’s no longer just about managing people, rather it’s about coaching and inspiring people, equipping them with the tools they need and empowering them to make and own their decisions.
This includes providing regular and ongoing feedback, and recognising that once you connect team members with the resources they need, letting them test and then learn from any mistakes made is an important part of the process.
Education and an ongoing communication from leadership is key to enabling and empowering staff to deliver a sustainable and superior client experience. On our tour, we met with many US firms who are realising the value of getting this right from the very start andactively changing their recruitment approach as a result, showing that diversity of thought, perspectives and experience are critical to building a stronger overall experience.
Central to all of this is having a well understood brand promise – on what you deliver to clients and how you ensure staff can consistently communicate your firm’s story to the market. Ensuring this commitment around what you stand for is well understood is critical not just for existing staff, but for the new recruits who will be central to building your culture in the years to come.
Opportunities for the future
We’re discussing each of these opportunities with the firms we work with, to ensure the decisions they make today will position them for ongoing success in the future.
Ultimately, in a world where clients no longer differentiate their experiences along industry lines, the need for businesses to embrace client centricity is more important than ever.
Firms who recognise this opportunity will evolve their client experience model, and rather than being challenged by technology, will use it as an opportunity to add to the value of their services and business.
Sherise Mercer is head of Macquarie’s virtual adviser network.
Recommended for you
Count CEO Hugh Humphrey is keen for the firm to be a leader in the new world of advice as the industry generates valuable businesses post-Hayne royal commission.
Money Management explores what is needed for a successful fund manager succession plan as a generation of managers approach retirement and how firms can mitigate the risk of outflows.
As ESG and sustainable funds continue to suffer outflows and the regulator cracks down on greenwashing, there has been a notable downturn in the number of launches and staff hires in this area.
Four advice industry leaders share tips from their career experiences and what has helped progress to their senior leadership positions.
