Modernize your service model, both for your next client and your succession plan  

If you’ve been in the wealth management space for more than a decade, you probably have a lot of clients who are in their late 60s and older. These clients came to you in a much different era than today. They expect a specific type of personalized service, such as face-to-face appointments and a particular beverage when they come into the office. And some likely still prefer paper statements that are traditionally mailed rather than digitally delivered.

While it’s important to continue to serve these folks well, what they may perceive as a quality client experience is quite different than what's expected by the 50-year-old who will schedule his or her first appointment tomorrow.

If you want to continue to grow your financial advisory practice, someday attract a partner or buyer and eventually scale back or retire, but your business model is still entirely tailored to service clients who signed on 15 years ago, this must radically change.

First, while this may sound harsh, the reality is that the clients who have been with you forever aren’t likely to leave you. They may resist adapting to how things work in 2023, but they will adapt rather than find a new advisor.

The clients you serve currently, as well as the ones who will soon hire you, certainly all expect personalized service delivered, at least in part, by a human being. If they didn’t, they would avoid using a financial advisor and simply find a low-cost solution. But how has service changed over the years and what does a great client experience look like today?

Younger clients are not only comfortable with, but they also actually value certain conveniences that modern companies offer. These include an easy-to-use portal where they can upload documents and see outstanding action items. They want a place where they can quickly locate their current financial plan and appraise their progress toward accomplishing their goals. They like interactive portfolio analysis tools that enable them to see returns over time. And while some certainly may want to see you in-person now and then, modern, younger clients have no problem with email, text and Zoom communication and are comfortable utilizing an online appointment scheduling tool.

Many of your long-term clients who have stopped working may not find much value in the list above. Their financial life is simpler as they’ve been retired for many years. They don’t mind swinging by the office to drop off statements or sign forms. And they’d rather have a person call them to schedule an appointment as they likely don’t have as many interactions as a working person does throughout the day.

Whether or not your long-time clients value a modern client service experience, it’s crucial you move in that direction if you want to grow your business and even someday implement a succession plan. The fact is that you’ll have a tough time acquiring new clients, or eventually selling your firm to a modern entity and retiring, if your service model is stuck back in the ‘90s.

Scott Hanson is co-founder of Allworth Financial, formerly Hanson McClain Advisors, a fee-based RIA with approximately $16 billion in AUM.