Like all corners of our modern economy, customer experience (CX) has become a key differentiator in wealth management too. Investors are no longer satisfied with just good returns on their investments or well-organized financial plans. They crave a holistic experience that simplifies the complexity of a rich financial life.
A focus on the right products, delivered at the right time, is central to meeting these modern client expectations.
Understanding the product-focused approach
A product-focused approach means developing and delivering financial products and services that cater to an investor’s specific needs and preferences. It means moving away from a one-size-fits-all model to one that embraces customization and flexibility.
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For example, wealth managers can create individualized portfolios and investment strategies that align with each client’s financial goals, risk tolerance, and time horizon. This level of customization not only enhances the potential for returns, but also demonstrates a genuine commitment to understand who the client is and what matters most to them.
A product-focused approach builds trust. It encourages clear and open communication about the features, risks, and costs associated with each investment product. Investors appreciate knowing what they are investing in and the expected outcomes. Transparency fosters confidence and reduces the likelihood of misunderstandings or dissatisfaction.
When wealth managers have access to user-friendly platforms, they can streamline onboarding and access to products for clients — both of which improve the customer experience. This level of accessibility is especially appealing to the next generation of investors who are accustomed to having these kinds of experiences in all brand interactions.
Great products lead to great CX
A product-focused approach doesn’t focus on products alone. Quite the opposite is true: a deep understanding of your clients informs the creation of products, ensuring they’re impactful and resonate.
Take client communication, for example.
Our research has determined that the average wealth management account has 130 communication touchpoints each year. Between performance updates, investor relations materials, and disclosures, investors are simply unable to digest the deluge of communication coming at them. What do they do when this flow of information continuously hits their inbox? Delete, delete, delete. Is it a surprise that most investors don’t find typical shareholder notifications and correspondence engaging?
Most dashboards don’t help. They assault investors with the communication they haven’t read, leading to overload. Instead, we believe that dashboards must start with the premise that investors can’t or won’t read every piece of communication they receive. Therefore, firms decide they must distill communication to what is most meaningful and actionable to each client. Our research finds that 74% of clients say they prefer a personalized summary of their account information, a 13 percentage-point increase since 2021, which was the basis for our Wealth InFocus communications experience.
By simplifying and personalizing account communication, we are able to better engage investors, leading to greater satisfaction and loyalty.
Hyper-personalization drives products
The next step in product development is personalization.
By creating bespoke experiences, wealth managers demonstrate an understanding of the unique financial goals, challenges, and preferences of each client. As a result, investors feel heard and valued, resulting in superior CX.
In addition to tailoring product recommendations and investment strategies to financial needs, wealth managers have an opportunity to go deeper. For instance, layering in personal preferences, such environmental, social, and governance (ESG) investing, aligns not only with clients’ financial foals but their values too.
A number of tools can help deliver the personalization investors crave:
- Automated Onboarding Tools: With an understanding of the investment goals, risk tolerance, and preference clients have, wealth managers are able to easily create customized portfolios that address each client’s unique qualities.
- Goals-based planning tools: These tools help investors set and track goals that resonate most for them. Seeing their progress toward specific goals can increase investor motivation and engagement.
- Digital financial dashboards: Dashboards that provide real-time access to a investor’s financial information, investments, and performance metrics can be customized to display the most relevant data.
Data is crucial for personalization
Personalization at scale is only possible with robust technology.
For starters, wealth management firms should deploy artificial intelligence to collect and analyze vast amounts of data about their clients. This data can include financial histories, risk tolerance, investment goals, and personal preferences. Advanced analytics and machine learning algorithms can process data sets quickly to create highly personalized investment strategies and financial plans. Those are the building blocks for creating tailoring investment strategies to individual investor needs.
What’s more, technology enables wealth management to provide clients with real-time insights. Building an omnichannel experience lets clients access their account information when and how they wish. This ease of use and immediacy empowers clients to engage with their wealth manager, helps foster trust, and increases satisfaction.
By monitoring which services and content resonate most with clients, firms can tailor their offerings to better meet client needs and preferences. It’s an iterative process that’s driven by data and ultimately leads to continuously improved CX.
Bottom line
To stay competitive in today’s wealth management industry, delivering exceptional customer experience is non-negotiable. A product-focused approach, supported by technology, personalization, and a client-focused mindset, offers a compelling way to meet and exceed client expectations.
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