Toolbox Studios Founder and President Rob Simons shares his observations from the recent FOX Wealth Advisor Forum…
While it may seem counter intuitive, the current economic volatility actually provides financial services firms with numerous opportunities to grow and prosper. I was recently reminded of this fact when I attended the 2009 Family Office Exchange (FOX) Wealth Advisor Forum at the Trump International Resort in Sunny Isles Beach, Florida. The FOX organization hosts this annual event to bring family office and multi-family office organizations together to learn about the current trends in the industry and to share best practices.
As an event sponsor, I was able to interact with numerous attendees and speakers. These conversations reinforced that the shaky economy has created opportunities to attract new clients, add quality employees and re-energize your current staff. The following are a few of my key takeaways from the event:
Many of the most affluent are (right now) looking for new financial service providers.
According to Dr. Jim Taylor, Vice Chairman of The Harrison Group, 14% of Ultra High Net Worth (UHNW) households are “currently looking into finding a new financial services advisor.” With thousands of households looking for a new financial advisor, it’s important to make sure your firm is positioned to attract these new customers. In fact, it’s more important than ever to make sure you have a clear message that stands out in the marketplace and differentiates your company. By solidifying your brand message you can make sure you’re poised to capture these new clients.
Communication is key to client retention.
The Harrison Group also asked UHNW households to rate how well their advisors are explaining the impact of the current economic situation to their portfolio. Only 67% of those surveyed gave a rating of “Excellent” or “Very Good.” So, over a third of respondents feel their current financial services firm needs to do a better job of communicating. So make sure your firm is doing a good job at communicating internally and externally about the current volatility in the market. During a time of crisis it is important to communicate regularly and clearly with your employees and clients.
Financial services firms are looking for new investment products.
According to the FOX research department, over 85% of family offices are “searching for new ‘opportunistic’ investment strategies.” If you are a private equity fund, investment banker or money manager, this is an outstanding environment in which to present your products to financial services firms. With so many underperforming products in the industry, firms are struggling to find secure investment models. Your product or service message should be clearly defined and positioned to fill the needs of those looking for ‘opportunistic’ investment strategies.
Talent retention is critical to success.
A managing director of a multi-family office commented, “Talent is the single most important thing in this market environment. Employers need to focus on keeping their best people and making sure they are not being poached away.” One of the critical factors to talent retention is clearly communicating within your organization. Employees want to know how the economy is affecting their employer and what is being done to grow the firm. Brand development is one of the best exercises to build consensus and focus your staff on growth.
In another survey by the FOX research team, almost three-quarters (74%) of UHNW households are “Pessimistic” or “Somewhat Pessimistic” about their investment returns for 2009. This reinforces that consumers are nervous about the current economy and will therefore be more receptive to extra communication from their advisors. It also indicates an opportunity to leverage these concerns and convert prospective clients into new customers.
Recent Comments