In the first of a three-part series, our practice management team shares strategies for standing out in a “sea of sameness” when offering financial advice. Part one gives you an overview of how human advice gives you a natural edge as a wealth advisor over digital platforms where clients tend to be self-directed.

In addition to a competitive edge, personal advice gives clients deeper reassurance about the advice they receive. As the illustration below demonstrates, when clients receive “human” advice versus digital, their peace of mind increases significantly.

Source: Vanguard “Quantifying the investor’s view on the value of human and robo-advice” February 2022
In this figure, the sample includes all who responded to the question, for a total of 1,308 human-advised and 337 digital-advised clients. Clients could rate peace of mind from 0 (“No peace of mind at all”) to 10 (“A great deal of peace of mind”). Clients were considered to have peace of mind if their rating was between 8 and 10.

Human Advice Promotes Connection and Security

As the chart below demonstrates, clients who prefer human advice are looking to form a deeper connection with their advisor. They want to feel heard and understood, especially when it comes to goals for retirement. When you ask open-ended questions and repeat back the points clients make using their language, it helps reassure them that their top priorities will be factored into their wealth plan.

Consider Focusing on a Niche

Another way you can stand out from digital advice and other advisors in general is to focus on a niche. Become a specialist. For example, say you have a client who’s a business owner nearing retirement. You can set yourself apart by designing a plan to address questions like these:

• What is my business worth now—and what does it need to be worth to meet my goals?
• How do I develop a succession plan and timeline for my transition?
• How can I minimize my taxes prior to selling my business?

Through specialization, you can add value by anticipating problems, asking diagnostic questions and by understanding the issues a client or prospect is facing.

Competing With Digital Advice

For individuals who prefer a digital advisor, the chart below shows that it’s all about efficiency. Clients like to monitor and see in real time all aspects of their wealth plan on a digital advice platform. They believe that digital advice helps ensure all their investment accounts aren’t overlooked. So, to compete with a digital platform and set yourself apart, consider leveraging technology resources to organize clients’ information and combine that with making a personal connection that lasts.

Source: Vanguard “Quantifying the investor’s view on the value of human and robo-advice” February 2022

Note: In these graphics all 1,518 clients answered the question. They were presented with the micro-interactions and asked to rate whether they preferred that service to be delivered by a human or a digital advisor. The ratings were presented on an 11-point scale, where 0 meant “Completely delivered by a human” and 10 meant “Completely delivered by a digital service.” Clients were considered to prefer human delivery if their rating was between 0 and 4 and digital delivery of the service if their rating was between 6 and 10.

Building Long-Term Relationships

It takes time and trust to build long-term relationships with your clients. Your biggest differentiator is you—what you bring to the client relationship as someone who listens and cares and makes your clients feel like they are in good hands when it comes to building financial security.

This material is intended for informational and educational purposes only. No representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. Reliance upon information in this material is at the reader’s sole discretion.

Mariner Advisor Network is a brand utilized by Mariner Independent Advisor Network (“MIAN”) and Mariner Platform Solutions (“MPS”). Investment advisory services are offered through Investment Adviser Representatives registered with MIAN or MPS, each an SEC registered investment adviser. For additional information about MIAN or MPS, including fees and services, please contact MIAN /MPS or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).

For Investment Professional use only.  Not for use with the public.