5 biggest trends in client engagement for 2021

This year has been full of surprises and has transformed business operations. In an industry where in-person interaction and client meetings are the norm, 2020 has brought digital communication changes that no financial advisor could have predicted.

With the end of the year approaching, it is customary for professionals to look at trends across their industries, assess the landscape, and decipher what to expect from the upcoming year. Trends were radically different this year. Nonetheless, we were still able to look at the data from large firms down to solo advisors to pick out a few trends.

1. Traditional client interactions are a thing of the past.

At the start of the pandemic, advisors were faced with the challenge of communicating with clients without being able to leverage their traditional communication channels. They feared that the switch to virtual, video-based meetings would not deliver the same experience for creating and fostering relationships.

However, professionals who adopted virtual meetings found them to be a beneficial way to connect with their clients quickly, casually and frequently. It’s undeniable that virtual meetings are easier to schedule and without travel, save time, and many advisors and clients will continue down this path even when the pandemic’s restrictions are lifted.

2. A strong digital presence is a must.

Alongside virtual meetings, advisors’ online presence and digital footprint will be more important than ever in 2021. Prospective clients are no longer able to walk into the office for a one-on-one meeting. Digital is now the first, and sometimes the only chance for an advisor to connect with leads.

To prepare, advisors ought to invest more time in expanding their digital presence with robust digital marketing, including regular social media posts to keep their clients informed and up to date. By regularly emailing prospects and posting relevant and informative content across social media accounts, blogs, and websites, financial professionals naturally establish themselves as subject matter experts and will be top-of-mind when clients realize they need the services of an advisor.

3. Communications must go mobile.

In this fast-paced, ever-changing digital world, all marketing and communication strategies need to be mobile-first. Yes, mobile enabled websites are the first thing that comes to mind but adding a mobile approach to marketing strategies does not have to be complex. All software and services should be accessible from all mobile devices.

Even though the country is working from home, people aren’t chained to desks anymore and advisors that are able to look good and conduct business from anywhere will have a serious advantage in the months ahead. Don’t overlook the power of the humble text message (SMS and MMS) in mobile plans. Text in particular is a widely-accepted way of professional communication that will truly take hold in 2021. Advisors will send reminders, confirmations and schedule appointments via text. This is a safe surefire way to communicate efficiently with your clients.

4. New ways to manage digital compliance.

Many advisors experimented with the new digital communication methods in 2020 as a necessity, without much thought about how compliance officers would keep pace. In 2021, the many podcasts, webinars, vlogs and more produced by broker-dealers will need to be archived and tracked for compliance.

One method for managing the sheer volume of digital communications created will be the use of artificial intelligence. Compliance departments will need to get up to speed with the latest technologies just to keep pace with the latest digital communication trends, or risk facing potential fines.

5. Change is constant.

Change brings more change. With new tools required for success in 2021, many technology-averse advisors already nearing retirement may choose to get out early to avoid having to learn new ways of managing their businesses. Younger advisors, with fresh ideas and different expectations of the technology they use, will enter the scene. Industry-wide contraction will continue, as RIA firms continue to gobble up others, and broker-dealers recruit independent advisory firms into their fold.

Although many elements of our future are uncertain, consistent communication remains central to building trusting, long-lasting relationships with clients. Creating loyalty requires that advisors show a deep understanding of their clients’ needs, and speak to those needs in a timely and relevant way.

Advisors who are able to adjust and adapt to these digital communication trends will be well on their way to retaining clients for the long term while also making themselves available and accessible to new investor clients.

Dave Christensen is Chief Product & Technology Officer at FMG Suite.