Client Engagement and Communication Strategies Wins the Day

Hue Partners is proud to share the Spring M&A Confidential article authored by Tom Fields, CEO of Fynancial. 

As I reflect on my journey in the wealth management industry, I want to share some insights that can help fellow advisors navigate the ever-evolving landscape we find ourselves in today. My story began with a pivotal moment—one that many advisors might relate to. After five years of dedicated service as an advisor, I faced a significant setback when I was unexpectedly let go by my largest client, who accounted for nearly 20% of my business. The reason? A lack of communication.

This experience taught me a valuable lesson: no matter how well we think we’re serving our clients, if we don’t communicate effectively, we risk losing them. This realization sparked a transformative journey for me, leading to the founding of my firm, which aims to bridge the communication gap in our industry.

Addressing the Communication Gap

In our line of work, many of us still rely on traditional communication methods—face-to-face meetings, phone calls, and emails. While these methods have their place, they haven’t evolved much over the past two decades. Social media and digital platforms have changed the way we communicate, yet many advisors remain stuck in outdated practices.

This is where I saw an opportunity. I realized that we needed to empower advisors with modern tools that enable effective communication. That’s why we developed a mobile app that consolidates various client portals and enhances client engagement through push notifications. By providing a centralized platform, we can ensure that clients receive timely and relevant information directly on their phones.

The Importance of Communication in M&A

As the wealth management industry continues to experience a wave of mergers and acquisitions (M&A), the role of communication becomes even more critical. Advisors looking to acquire firms must emphasize not just the technology they have but how they utilize it to enhance the client experience.

When firms approach us for assistance during the M&A process, we guide them on how to leverage their app to showcase the potential client experience. It’s essential to communicate effectively during these transitions, as clients need clarity on what changes mean for them. A strong first impression can make all the difference in retaining clients during a rebranding or ownership change.

Maintaining Client Engagement

One of the biggest challenges we face as advisors is the tendency to shift our focus away from existing clients once they’ve been onboarded. It’s easy to get caught up in the excitement of acquiring new clients, but the true potential for growth lies in maximizing the value of our current relationships.

I’ve seen firsthand how maintaining consistent communication with clients can lead to remarkable results. For example, one of our clients successfully utilized our app to market structured notes to their existing clientele, resulting in an impressive $12 million in net new flow within just one month. This illustrates the potential of engaging our current clients with new opportunities and offerings.

Avoiding Common Mistakes

Throughout my career, I’ve encountered numerous advisors who struggle with their communication strategies. Many fall into the trap of reducing engagement frequency after onboarding clients. This can lead to clients feeling neglected, ultimately jeopardizing retention.

To overcome this challenge, we must develop habits that prioritize ongoing communication. Transitioning from traditional email-based communication to a more engaging app-based approach can make a significant difference. New clients, especially, are accustomed to using apps for their daily interactions, and they are more likely to embrace this modern method of communication.

Envisioning the Future of Wealth Management

Looking ahead, I believe that client experience will become the primary differentiator in our industry. As technology continues to evolve, those of us who can simplify financial processes and enhance client interactions will gain a competitive edge. The goal should be to create a seamless experience that allows clients to access their financial information, communicate with us, and make informed decisions—all from their mobile devices.

While technology will undoubtedly play a significant role in shaping the future of wealth management, I firmly believe that the human element of advising will remain irreplaceable. Artificial intelligence and automation may enhance certain aspects of our work, but the need for trusted advisors who can navigate complex financial situations and provide personalized guidance will always exist.

Client Communication Wins

RIAs that  prioritize effective communication and engagement with clients will win in the end. My journey from a struggling advisor to a leader in wealth management technology has reinforced my belief that we must adapt to the changing landscape. By embracing modern tools and focusing on enhancing the client experience, we can not only thrive in today’s environment but also shape a more connected and responsive future for our industry.