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Overcome 4 Business Challenges with Tech and Training

Advisers are being sold technology to solve their problems at every corner, said Greg Friedman, founder, CEO and president of Private Ocean.

“Technology is so oversold to all of us,” Friedman said at a recent FPA Retreat 2017 session.

It’s a combination of technology and staff training that is the key to managing business challenges, Friedman said. He knows this because during his time in the industry, he’s seen some things.

“I am the poster child for every problem this industry has,” Friedman said, who started Friedman and Associates in 1991 at age 28 with two associates—his twin toddlers—and now the company has “evolved through all stages.” Private Ocean—the result of a merger between Friedman and Associates and Salient Wealth Management—now has 24 full-time employees and seven advisers.

Friedman gave attendees tips on how to solve the four common business challenges—business development, marketing, time management and efficiency.

Utilize available technology. Prospecting becomes easier if you have software that can show you how you are possibly connected to prospects. Friedman uses Relationship Science, which allows planners to plug in a name and see all the connections that adviser potentially has with that prospect.

Marketing automation is another helpful piece of technology. When prospects enter their email on your site, the automation will automatically send the prospect something and then notify you when you have a bite, Friedman said.

Don’t forget CRM.

“CRM is core,” Friedman emphasized. “I don’t care which ones you use, but use one.”

Develop and reward employees. Friedman said having the staff on board is a must for success.

“Having that data and having those systems means nothing if people don’t know how to use it or know how to get clients,” he said, also suggesting that firms provide ongoing sales training and coaching. If advisers are uncomfortable with “sales” training, call it “relationship,” “communication,” or “consulting” training.

Designing a compensation structure that rewards top advisers while not penalizing advisers who don’t meet goals is a way to motivate advisers, Friedman said.

Implement service models effectively. It’s unsustainable to give an eclectic mix of clients the full range of your services, so pick the clients who may not be a match for you and figure out a way to gently steer them to a more appropriate firm or planner.

Also, define what your services are and make more efficient assignments, giving the simple client cases to junior associate advisers and free up time of your more experienced advisers to take on the more profitable, complex clients.

Outsource when needed. Private Ocean outsources some of its marketing efforts to a company called Set Wave, which helps it use social media in the most effective ways.


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5 Reasons Financial Advisers Can’t Afford NOT to Blog in 2017

Your relationships with clients and prospects need to be strong to weather 2017’s potential storms—the DOL fiduciary rule, a new president looking to draw back government regulation, Brexit kicking in by April, increasingly unstable international markets, and more.

Building that relationship is a matter of regular communication. While your existing clientele may communicate with you via phone, visits and email, the majority of the population is now acquainting itself with new advisers online—specifically via blogs. Yet many advisers still aren’t blogging regularly.

Here are five reasons advisers can’t afford NOT to blog in 2017.

1.) It’s the fastest, easiest way to dispel client fears in a year packed with unknowns. The markets are off to a better start than they were last year, but who knows what tomorrow holds?

Most advisers could set their watches around the calls they get from their more anxious clients when things get bumpy.

Answering client questions is a great way to connect, but answering the same questions over and over can be a major time-eater. Save yourself some time by blogging regularly and sending out links to old blogs that address their concerns when market news goes south.

2.) Last year, Google acknowledged that content is king when it comes to search rankings. While Google’s search ranking factors are largely a mystery, just last year they said that new content is one of their top measurements.

The easiest way to regularly add new content to your site? You guessed it: blogging.

Bonus tip: Google also said outbound and inbound links are high on their list.

Outbound links point to other sites from your own site. The best and easiest place to include outbound links? Your blog. Shoot for one to three in every piece.

Inbound links point to your site from other sites. These are more difficult because they require someone else linking to you. But no one wants to link to your “About Us” or “Services” page. Most links between sites point to one place: blogs.

3.) It’s a good way to build trust with prospects (although, admittedly, not the best). If everything goes through with the DOL’s upcoming fiduciary rule change, a lot of advisers will no longer be able to use their fiduciary status as a differentiator. How will you prove you can be trusted?

The best way to establish trust? Actually, it’s face to face interactions—not blogs—but your blog isn’t too far down the list. You don’t have to look far for people who have established themselves as trustworthy authorities, thanks largely to regular blogging (and a fresh perspective): Michael Kitces, Carl Richards, and Wade Pfau, among others.

4.) It’s the best digital driver of new leads. Blog posts are great because they’re a permanent fixture on your site. If you write a post on tax loss harvesting and then a year later someone is searching for that subject, they could happen upon your site.

But old blog posts have nothing on new ones. In my experience, a blog post will typically earn 98 percent of its traffic within the first five days.

The best way to keep new leads rolling in is with new blogs.

5.) Stake your claim with your personas. In the financial industry, not everyone is blogging, but 2016 saw the number increase exponentially. That means countless advisers are out there blogging directly to their desired audience, which quite possibly overlaps with your audience. If you’re not blogging about stuff your personas care about, you’re probably not on their radar.

You might have all the knowledge in the world, but if you haven’t written it down somewhere online, it might as well not exist.

So make 2017 the year you start blogging, and stop missing out on prospects. If you’re still not sure how to get your blog machine up and running, check out this offering from Mineral and Wendy J. Cook Communications, one of our favorite content providers for advisers.

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Zach McDonald
Editorial Director
Mineral Interactive
Omaha, Neb.


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9 Cybersecurity Tips to Keep Your Firm Safe

If somebody walked up to you and asked for your house keys, you wouldn’t give them away. But when somebody asks for our key identifying information on the Internet, most of the time we willingly hand it over. That’s what representatives from SeeGee Technologies Inc., a next-generation technology solution provider, told FPA staff at a recent cybersecurity training.

You may think that just because you have a small firm, cyber criminals don’t have any interest in you, but that’s not true. In fact, you are their portal into bigger pools of information. And your employees could unknowingly be putting you and your clients at risk each time they access sensitive information over unsecure connections.

“No individual or business is safe,” said Daniel Lakier, chief technology officer for SeeGee.

Always exercise common sense and responsibility when using the Internet and apps—don’t click on pop-ups, don’t click on links to track packages you aren’t expecting, and don’t provide personal information to hackers posing as your bank.

Here are some tips to keep your personal information and your firm’s information safe:

  1. Establish strong passwords and update them every 90 days.
  2. Don’t download email attachments you aren’t expecting and beware of emails telling you to download software to fix problems.
  3. Install anti-virus and anti-spyware programs on all devices before connecting to the Internet.
  4. Install and use a firewall on every device.
  5. Have physical access controls for all your devices.
  6. Backup all important data daily.
  7. Keep your software updates for browsers and operating systems current.
  8. Limit access to sensitive and confidential data and don’t ever access it on unsecure connections.
  9. Get technical expertise when needed.

For more information, visit seegee.com. Find more tips on cybersecurity from the FPA Research and Practice Institute™ here.

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.

 


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Investors Want the Best of Both Worlds

Investopedia - FPA Research Report  - Version 2.0Robo-advisers are never going to replace you.

Turns out the conversations shouldn’t be about either/or, but rather how to best combine human and robo advice. New research from the Financial Planning Association and Investopedia finds that investors don’t want one over the other; they want both.

“The debate about whether robos or human advisers will win is moot. The future of financial advice is bionic—a powerful combination of both,” David Siegel, CEO of Investopedia was quoted as saying in an article on Investopedia, “Investors Want the Best Tech, a Human Touch with Financial Advice.” 

“As investors get more comfortable with automated investing platforms, they’re starting to demand both the low-cost benefits such platforms provide and the irreplaceably customized and high-touch approach of financial advisers,” Siegel said to Investopedia.

The FPA and Investopedia report found that 70 percent of respondents were very satisfied with their financial adviser or financial planner, while 73 percent of survey respondents were satisfied or very satisfied with their primary automated investing platform. But only 40 percent of respondents felt comfortable relying solely on an automated platform during times of volatility.

“Technology is rapidly changing the way people invest and manage their finances, but clearly investors value the high-touch financial advice afforded by professionals,” 2016 FPA President Pamela Sandy, CFP®, told Investopedia. “Those investors who utilize the benefits of technology and maintain a face-to- face relationship with a qualified financial planner, like a CFP® professional, will be best positioned to meet their financial goals and achieve financial security.”

For more on the study, click here.

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.

 


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Be Proactive about Cybersecurity

Your clients are concerned about cybersecurity.

A recent study by Kaspersky Lab, a global cybersecurity firm, found that 65 percent of consumers worry about the cybersecurity practices of companies that have their personal and financial information. And yet the first of three white papers by FPA Research and Practice InstituteTM, “Cybersecurity: Client Perception and Communication,” sponsored by TD Ameritrade Institutional, found that only 11 percent of financial advisers surveyed think clients are “very worried” about this issue.

Regardless of perception how many clients may or may not be worried about cybersecurity issues, cybersecurity risks to advisers and their client are real. The FPA white paper offers the following steps to be more proactive:

  1. Conduct a team meeting. In this meeting, ask employees what their experience has been and whether they’re hearing concern from clients.
  1. Gather data. Find out specifically what clients are concerned about. A survey might help with this. Doing so will help you determine what gaps exist between what your clients are worried about and what you are doing to mitigate their worry.
  1. Decide your role. Determine whether you want to reach out to clients proactively and tell them what your game plan is in case a breach exists, or reach out reactively.
  1. Map out communications plan. Figure out what you’ll say over multiple channels because one form of communication won’t be enough. You’ll need to communicate through emails, blog posts, articles, conference calls, etc.
  1. Focus on consistency. Make sure every staff member is relaying the same message to clients. Ensure all team members understand the issue.

Download the first of three white papers, as well as the full, original study at www.OneFPA.org/cybersecurity.

 

AnaHeadshotAna Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.

 


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There’s Work to Be Done, says Cybersecurity Report

FPA_2016Cybersecurity_Report_R7.inddA day doesn’t go by when there’s not some attempt to hack personal information, Bryan Baas, the managing director of risk oversight and control for TD Ameritrade Institutional said at press conference at FPA BE 2016.

Baas was speaking on the results of the “Is Your Data Safe? The 2016 Financial Adviser Cybersecurity Assessment” study conducted by the FPA Research and Practice Institute™ and sponsored by TD Ameritrade Institutional.

Advisers are well aware of the issue and 81 percent of those surveyed say it is a high priority for them. But despite this, less than half of the advisers surveyed don’t understand the risks and how to mitigate them.

“Cybersecurity is with us every, single day,” Dan Skiles, president of Shareholders Service Group and a member of the FPA Board of Directors said. “It is something advisers need to worry about today, tomorrow, 10 years from now.”

The report found that there are several areas where advisers can improve in terms of establishing and implementing documented policies and procedures.

When it came to governance and risk assessment, 57 percent of the 1,015 survey participants had documented policies and procedures in place; 59 percent had them in place for access rights and prevention; 58 percent had them for data loss prevention; 51 percent had them for vendor management; and 43 percent had them for incident response.

Simply becoming aware that there is work to be done is an important first step.

untitled-7041What Can Planners Do Now
It doesn’t have to be so complicated, said Brian Edelman, CEO of Financial Computer Services, Inc.

Become aware. Become aware of what components you need to be looking at. Take an inventory of your data and do some risk assessment, which is similar to what you do with your clients.

Know that if there is a breach, you are responsible for notification. It’s embarrassing and distracting to have to tell all your clients there has been a breach, but the rule is clear that you must be the one to notify the clients.

If you have plans in place, practice them once. Ensure that your team is aware of what to do in each type of event that could possibly occur.

Give your clients tips to stay safe. Oftentimes, a breach that happens to you happens because one of your clients was hacked. So give them tips to employ tools like dual-factor authentication on their Gmail accounts.

Vet your vendors. You’re trusting these third-party technology companies with your information, so ensure that they are safe themselves. Visit their offices and see how they work and ensure they’re doing all they need to do to keep you safe.

These things might be a pain, but they’re necessary steps to ensure yours and your clients safety.

“What is an inconvenience to you is most likely a roadblock to the bad guy,” Baas said.

Three upcoming whitepapers will be released by The FPA Research and Practice Institute™ and TD Ameritrade Institutional that will give advisers information on the following topics: how advisers are communicating with clients regarding cybersecurity; how advisers are training their teams on issues related to cybersecurity; and what tools and technology (and its associated costs) advisers are using to protect their business.

For the full study, visit www.onefpa.org/Cybersecurity.

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.


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Top Ten Tips to Implement CRM

Everyone would like to maximize the use of their customer relationship management (CRM) software to reduce the workload, track the progress on servicing and sales and ensure staff is productive. The best way to maximize the use of any CRM is to implement it properly from day 1. Here are our top ten recommendations to successfully implement and maximize the use of your CRM.

  1. Plan the migration. Plan out the migration of data into new CRM thoroughly with the vendor. Know which data is moving, where it is moving to (what fields), when it will move and how long you should allocate for auditing and cleaning up the data. There is nothing worse than being surprised at how long it takes to migrate, to find out data is missing months after you moved to the new CRM or that data was placed in the wrong fields.
  1. Map out integrations. List the types of software that you want to integrate with your CRM to reduce data entry. Examples of types of software could be: form filling, financial planning, email, dictation, custodian AUM data feeds, portfolio accounting system, client portal, robo, online questionnaire, document storage and more. Then ask your CRM and other software vendors if the specific types of integrations exist, how they work to save you time and what are the implementation steps.
  1. Assign only one cook. Assign one staff person to implement and maintain the CRM. Too many cooks in the kitchen causes a huge mess within a CRM. Having one project manager will control the quality and integrity of the data.
  1. Sell, sell and sell. Before implementing the CRM, someone on your team needs to champion the change and sell the benefits to the staff. Change is difficult so staff need to be shown the benefits. Utilize the vendor to sell the system. Utilize a staff person to also show and sell it (use a demo license to show it to other staff). And send a few emails listing all the benefits of the new CRM BEFORE you implement the software.
  1. Categorize. Categorize all your contacts in the old CRM before migrating to a new CRM. Any CRM will allow you to pull up a report of all contacts within a certain category; this ability makes cleanup and use of the data 10 times faster.
  1. Merge, merge, merge. Create mail merge and email templates for all the documents and emails you send out frequently. There is no need to waste time typing in names, addresses or creating the same message repeatedly, from scratch.
  1. KISS (keep it simple). When you build out your drop down lists for fields, keep the number of items to a minimum. The more choices you provide in a drop down list, the less likely your staff will take the time to choose the right item.
  1. Flows are key. Create at least two to three workflows immediately. Building custom workflows is a long process and an art, not a science. By building a few workflows immediately, such as opening a new account, you will get comfortable with building workflows quickly. This is important as workflows are the biggest time saver. They identify your bottlenecks and eliminate wasted time spent on communicating or tracking a repeatable set of tasks.
  1. Limbo land. There is a time period between using the old and new CRM—we call this limbo land. You will want to communicate a policy for where to document contact changes, new additions, task changes, new tasks and so forth while in limbo land. Any change or new item should not be placed in the old CRM after the data is backed up and sent to the new CRM. And you do NOT want staff adding changes and new items to the new CRM until the project manager has audited the data and confirmed it doesn’t need to erased and migrated again.
  1. Sell, sell and sell. After implementing the CRM, provide best practices training every few weeks for at least two months to continue selling the benefits of the CRM. Allow the staff to share tips they have learned and have the project manager or champion train everyone on the proper use and shortcuts within the CRM.

Planning the implementation of the new CRM, or any new software, is the hard work. If the planning is done properly, the implementation and adoption is easier and produces a greater ROI and high adoption.

Jennifer Goldman

 

Jennifer Goldman
Founder
My Virtual COO
Boston, MA

Editor’s Note: FPA members receive a $500 member discount on a My Virtual COO consulting engagement. You can find more information here