Traditionally, the industry has emphasized clients’ net worth, which implies that a person’s worth to this world is directly correlated to their net assets, not their being. These words overlook the importance of overall well-being and perpetuates the misconception that only wealthy individuals deserve financial guidance. It also harms the mental well-being of investors.
According to a Bankrate survey, 47% of U.S. adults report that money negatively impacts their mental health.
A Broader Mindset About Wealth From Financial Advisors
Financial advisors/owners and their teams benefit from considering their own and their clients’ diverse life aspects, such as education, health, relationships, and career choices. This is where the concept of net wealth comes into play — the notion that well-being is more important than material ownership.
By focusing on net wealth and recognizing that worth extends far beyond assets, financial advisors can empower themselves, their team members, and their clients to mitigate financial stress and promote overall well-being.
Implementing the net-wealth mindset involves developing detailed financial plans that align with each client’s needs and priorities and crafting a client-centered service model. This approach benefits clients and advisors. By fostering stronger relationships and understanding clients’ overall life goals, advisors can enhance client satisfaction and loyalty, increase productivity, and drive business growth and profitability.
Getting Started With Net Wealth
Intentionally changing your processes, communication and culture entails consistently work on the business, not just in the business. Consider how you can integrate the following strategies into your approach:
Reframe conversations. Shift the focus from net worth to net wealth by asking open-ended questions about clients’ life goals, values and aspirations.
Integrate lean operations improvements. This can be achieved through the five-stage IDEOS™ methodology, that you can read more about here. Applying this approach can streamline your business operations, reduce waste, and create more value for clients:
Next Steps For Holistic Financial Advisors
Communicate Your Commitment and Approach
Share your entire financial planning process (from the initial inquiry call to the strategy meeting) in a visual diagram on your website, in marketing materials and during client meetings. Clearly explain the purpose of each stage to attract similar clients and to set your practice apart in a competitive market.
Continuously Learn and Adapt
Stay informed about emerging trends and best practices related to holistic financial planning by attending industry conferences, reading relevant publications and networking with other advisors who prioritize the net wealth mindset.
Craft a Client-Centered Service Model
This is crucial for delivering efficient, consistent and personalized financial advice. A well-defined service model should outline key actions, responsible team members and the utilization of technology. This structured approach fosters accountability and ensures clients receive the support they need throughout their financial journey — steps that can ultimately build trust and strengthen the client-advisor relationship.
Think in Tiers
Within the first 60 days of onboarding a new client, it is essential to communicate your team’s expectations regarding the frequency method, and scheduling of interactions. While this basic level of communication is necessary to maintain the client relationship, providing a truly referable experience requires a deeper level of engagement.
To ensure exceptional and scalable service, determine how and when your team will engage with clients at different tiers. Higher-tier clients may benefit from more personalized attention, such as monthly check-ins or acknowledging significant life events discovered through social media monitoring. This level of involvement can lead to additional opportunities, such as connecting with a client’s spouse or assisting their college graduate in finding an internship.
Big Benefits for Financial Advisors
Tracking these deeper involvement efforts in your CRM is crucial to maintaining a consistent and outstanding client experience. The benefits of creating a memorable client experience include:
Making your clients feel heard, valued, and appreciated.
Retaining more top-tier clients.
Receiving qualified referrals from more top-tier clients.
Building a reputation as a leading service provider in that niche.
A positive client experience is a powerful marketing tool for your business, as satisfied clients will likely generate word-of-mouth referrals. You can cultivate long-lasting relationships and build a thriving financial advisory practice by consistently delivering exceptional service tailored to each client’s needs.
Embracing the Industry’s Future
As the financial advisor industry involves, embracing a net-wealth mindset can set your advisory practice apart in a competitive market. It can help you remain adaptable, deliver exceptional service and attract and retain new business, A great client experience doesn’t just happen by chance; it requires a commitment and calculated effort to make clients feel valued and appreciated. Your clients are more than their assets; let them know that.
My Virtual COO’s Jen Goldman and Devon Volker make businesses healthier and scalable or saleable. They come with 30+ years of operations leadership, experience, and expertise in staffing, systems, processes, finances, and marketing to boost people, productivity, profitability and growth.
