Balancing client touchpoint quality and quantity

In our experience, a proactive client engagement strategy, implemented effectively, can help grow a practice's capacity and improve the quality of client service.

A structured client engagement strategy has the potential to help strengthen relationships and improve client service. We believe teams should use technology to connect and communicate with clients through both traditional and digital channels. Proactive phone calls or emails explaining recent economic events, for example, may inspire confidence that their assets are well-managed. Effective communication might even be the difference between a client leaving a practice and that same client referring a friend or family member.

Email remains the most common method of communication. Practices email their top clients (i.e., tier 1 or platinum clients) 19 times a year, on average, with more than two-thirds sending client emails weekly (24%) or monthly (46%).¹ This communication often include necessary service-related updates, reminders, and notices of problem resolution.

Here's what Cerulli Associates' survey of practice management professionals¹ revealed about the frequency of client contact.

We have seen that emails have reduced the volume of outbound phone calls for standard updates and reminders. Likewise, social media may reduce the volume of non-individualized emails. Practices are of two different minds about social media. In 2021, 42% of teams posted weekly or monthly, while 44% did not use it at all.² For some practices, compliance or regulation restrictions are just not worth the perceived hassle. Standing out in the feeds of moderate-to-heavy social media users can also be difficult, even with unique posts.

Phone calls, in our view, will likelyremain a key touchpoint for financial professionals. While other forms of communication have grown more popular, nearly three-quarters (71%) of practices report talking to their clients over the phone at least quarterly. Another 15% aim to speak semi-annually.²

The line between phone calls and virtual meetings has blurred since the pandemic. Not all situations require a call from a senior team member. We have seen that client segmentation, supported by structured communication (e.g., pod-based), may allow senior team members to focus on certain clients and still ensure that all clients receive consistent and constructive attention.

Practices appear to agree that in-person meetings with high-value clients and families are best. Teams across the industry average four in-person and five remote meetings a year with top clients, although a growing number meet in person just once (33%) or twice (30%) a year. One-third of PII respondents reported meeting eight to 10 times a year, virtually or in-person, with their platinum clients.³

Wealth managers should, in our view, likely reconsider how to better personalize in-person client meetings going forward. Clients still value face-to-face contact, but adjustments made throughout the pandemic are likely here to stay. Hybrid engagement will continue as clients opt for both digital and in-person meetings.

Naturally, many clients still value in-person contact for investment, liability, and performance reviews. Others prefer receiving these updates digitally and would rather that in-person meetings center on more sensitive and personal events, such as monitoring financial plans, working through business transitions, learning about new capabilities, and planning wealth transfers. We have seen that upmarket practices often conduct team-based meetings that include specialists and other centers of influence.

In our experience, family meetings, if clients are open to them, can effectively build relationships with beneficiaries. These relationships are critical as wealth transfers down from baby boomers and older generations; wealth managers can’t wait until an estate is settled. By including more family members in meetings now, wealth managers can potentially account for needs and aspirations across multiple generations. Better service also helps prevent client attrition when the primary wealth holder passes away. Many teams have added younger professionals who may be better positioned to engage next-generation clients to help smooth the process.

Client segmentation has, in our view, many advantages. A sound strategy can likely streamline communication across many different families and help determine the frequency and depth of that communication. It also has the potential to create opportunities to set internal expectations. Senior team members can focus on less frequent, more in-depth and personalized touchpoints, while junior members can handle standard, repeatable updates and reminders.

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