The digital revolution is well and truly underway, making changes in all aspects of life. Artificial intelligence is the season's flavor, with reams written on how AI and machine learning (ML) will shape the future of the internet age.
Susheela Dineshkumar Bohra, an MDRT member from Raichur, India, is bullish about the role of digital platforms for financial advisors. She points out, "Digital platforms ensure one can interact with clients in real-time, respond to queries and fix issues quickly. Personalized attention helps advisors build stronger relationships with clients.”
Another advantage is automating many routine tasks, including appointment scheduling, printing out invoices, and follow-up on emails and prospective clients. It saves time, capital and resources, according to Bohra. From the client's perspective, it helps advisors offer efficient service with prompt responses and interactions in a streamlined manner.
They also allow financial advisors to reach a wider audience cheaply using tools such as social media marketing, email marketing, and other digital strategies. Bohra believes the volumes of data and insights on user behavior allow brands to personalize services, offer services that match their needs and help build credibility.
Advantages of digital mediums in client connection
Digital mediums can be a valuable tool for financial advisors to reach more clients and offer better service to existing ones. Bohra points out, "For financial advisors, it is important to establish a strong online presence via the website and social media channels. A professionally crafted website that is easy to navigate and informative will help financial advisors attract new clients looking for financial planning services."
Digital platforms establish credibility and trust, as clients will trust and work with a planner with a professional online presence.
Moreover, financial advisors can curate and create content in multiple formats, including blog posts and white papers, and organize webinars. She reckons it is important to leverage social media platforms like LinkedIn, Twitter and Facebook. Offering an example, she says, "My messaging changes depending on the medium. On LinkedIn, I post industry news, insights, and updates related to insurance. I also share interesting articles or videos. I use Twitter for quick and timely updates, keeping with the brevity of the platform. I am most active on WhatsApp."
Bohra shares major updates, key slides, and important videos with clients on WhatsApp. "We also engage with big client groups, sharing content and participating in conversations. Some use social media for personal connections and self-expression, while I use it for professional networking and business promotion."
The pandemic has changed the rules of the game considerably. Bohra narrates an anecdote: "We began using a lot of stuff from HDFC Life insurance, where key concepts were explained well and in video formats. I started sharing these informative bits on Facebook, WhatsApp, and LinkedIn groups. Soon, views increased, and enquiries began to pour in, and I was able to introduce new clients to insurance. It took time, but soon people were more open to buying insurance online. It has been a transformative experience and has helped us bridge the digital divide."
She also narrates the story of connecting with a distant relative via a LinkedIn post.
“I shared a post on LinkedIn on fiscal fitness for Non-Resident Indians (NRIs) and making your money work. A distant relative reached out. His father had been a client, and after reviewing his father's investments, he wasn't satisfied. However, on reading my LinkedIn post, he was keen on investing in life insurance in India.
During our conversation, I spoke about the prudence of considering investments in India. My explanations worked, and he came on board.”
This, Bohra states, underscores the power of social platforms in facilitating meaningful connections and transcending geographical boundaries and demonstrates the remarkable ability of digital platforms to foster connections and initiate meaningful dialogues, resulting in valuable client engagement.
Bohra also talks about connecting with a public company director at an airport lounge, and connecting with him via WhatsApp. “I sent customized insurance quotes and posts that reinforced the importance of insurance. We got quotes for group medical coverage (GMC) for 4500 individuals. I visited, handled formalities, and issued policies, opening valuable interactions.”
She adds, “We continued the process and ended up securing a meeting with the Managing Director. I used videos to explain insurance, leading to GMC policy acquisitions. More colleagues followed suit.”
This hybrid approach, mostly on WhatsApp after one meeting, collected policy feedback, showing its efficacy. Bohra reckons the fusion of digital and personal engagement via WhatsApp, along with tailored content, cultivated trust and yielded successful sales.
Can digital advertising help financial advisors scale?
Bohra contends that targeted messaging, one of the key tools of digital advertising, has helped her business reach specific audience groups and has helped drive effective marketing campaigns. She reckons financial advisors can increase business via clever ad placements. For instance, financial advisors can target people searching for insurance products online and show them ads that highlight the benefits of the services they are offering. They can also use retargeting ads for people who have visited the website but are yet to make a purchase.
Navigating the challenges
In many ways, digital platforms are a game changer, enabling ease of business and helping financial advisors connect with relevant clients. However, there are also many challenges. "Technical issues, including poor internet connectivity in India, occasional software glitches, and hardware malfunctions, can lead to communication breakdowns and impact the client experience," Bohra contends.
Moreover, consumer-facing businesses in the market thrive on personal connections and one-on-one interactions. Communicating on virtual platforms impacts the chances of building strong relationships with clients. Security risks, including data breaches and cyber-attacks, can compromise confidential client information. Financial advisors need to solve these issues, such as getting stable internet connections and online security functions, while building their businesses on digital platforms, Bohra advised.
The other side of the coin
The proliferation of smartphones and cheap data plans, she adds, have made digital channels very common. She points out traditional methods work in case of complex discussions or negotiations. "It depends on clients and their circumstances. Businesses and professionals must use multiple communication methods to reach and engage with clients."
One-on-one meetings are still valuable and helpful. Bohra narrates an anecdote, "We were in a small fertilizer store in a rural area and overhead the owner telling his son not to order fertilizer products from a particular company because of the salesperson's behavior. He was not very receptive to our offerings. I told him the company made good products and offered good margins. If he left the partnership, the firm would allocate the services to a nearby vendor, and he would make losses. Finally, the owner was convinced to place the order, helped us with some leads and ensured we could collect premiums worth Rs 15 lakh based on his recommendations."
In another instance, she convinced a client to invest in a guaranteed product by paying a premium of Rs 15 lakh for five years and getting the guaranteed desired income of Rs 1 crore after 12 years. "This was possible only with personal meetings that helped understand the client's psychology by observing his body language and other traits.”
Implications on financial advisors
By striking the right balance, Bohra is confident that digital mediums will continue to evolve rapidly as advanced technological tools such as artificial intelligence and virtual reality enter the fray.
A significant implication, she feels, will be the ability to access and analyze large amounts of data in real-time. It will allow financial advisors to offer personalized and timely advice to clients and help them make better investment decisions and achieve their financial goals. Overall, the increasing use of digital mediums will bring opportunities and challenges for financial advisors and their clients. Those who can embrace these changes and adapt to the new digital landscape will be well-positioned for success in the future.
Contact: MDRTeditorial@teamlewis.com