Video : How Advisors turn Crisis into Opportunity (6 Tips from McKinsey Wealth)

Updated: May 27, 2020

Thanks to Randy Bullard (VP @ Charles River, a State Street Company), for his great LinkedIn post last week. It again highlighted to me that throughout history, a crisis like Covid-19 puts Money in Motion. While some Financial Advisors worry about losing clients, winning advisors like the two Randy mentions in his post, are using this as opportunity to reach out and engage current and prospective clients. By proactively providing valuable information, commentary and advice on how to get through this, these advisors are showing their knowledge, differentiating themselves vs less active competitors and growing their business.

Now more than ever, actively communicating with clients is vital. In fact, this is one of the tips provided by McKinsey Wealth Management consulting practice in their recent article on WealthManagement.com. Here’s our top 6 tips from the article (video version below):

1. Clients are considering Robo: Clients are becoming more and more comfortable with the idea of Robo-Advisors, so Advisors need to showcase the value of personal advice.
2. Timing of Client outreach is critical: Clients expect their Advisors to connect during key periods in their life, whether they are personal (wedding / baby) or economic.
3. Clients are 13X more likely to change Advisors during a Personal Event: Major life events are points where Clients rethink their plans, and who’s helping with them. If you don’t know about them, and actively discussing with your clients thoughts and implications, your competitors will.
4. Clients are 19X more likely to change Advisors during a Crisis: Client are looking for information, answers and advice during a crisis. They are out researching and talking to their friends and family. If you aren’t proactively providing information, your competitors will be.
5. Frequent Client contact is critical: It’s not enough to just reach out during events, clients want to know you care all the time. Waiting until a major event may to be too late.
6. More interactions with Clients drive satisfaction: Studies have shown that clients who hear from their Advisor more frequently think they care more and provide more value. Higher satisfaction leads to more loyalty, retention and referrals as your clients sing your praises in their community.

Let me know if you agree with this perspective, and are seeing the same impact Randy Bullard is. I’d welcome the opportunity to hear your opinion and discuss how you and your firm proactively engage with clients.

Justin Parker | co-CEO @ ReachStack

justin.parker@reachstack.com