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The pandemic affected advisors very differently. For some, the abrupt elimination of in-person meetings, which they depended on, disrupted their workflow.
For others, though, the pandemic caused far less disruption. Why? Because they’d already modernized their practice to a hybrid communication model that incorporates the best of in-person and online meeting capabilities.
Coming out of lockdown, you have an opportunity to modernize your workflow, communication tools, and advising strategies to work smarter and create more client value. This article redefines the concept of a “hybrid advisor” and identifies the factors to consider as you plan for success.
“Hybrid advising” applies to communication and workflow
You may see “hybrid” and picture an advisor licensed by both FINRA and the SEC, with both advisory and commission-based business.
Now picture an advisor whose client communication is a blend – a hybrid – of both in-person and online meetings. Their client engagement blends characteristics of both worlds into a modern communication process that optimizes relationships. This is a new definition of “hybrid advisor,” and it will carry increasingly more importance going forward.
We’ll look at the reasons behind that, and what to do about it, in this article.
What is hybrid client communication?
A hybrid combines two varieties of something to create an offspring or result of mixed character. In this case, the “parents” of hybrid advising are the traditional, in-person model and the remote, technology-based model you’ve been using since March 2020. The offspring, or “hybrid” model, combines the best traits of both parents to create an even better result.
There’s a huge age gap between the in-person model (ancient) and the remote model (barely legal). However, each parental model brings definite advantages.
Nothing beats the rich, nuanced, unrushed communication and relationship-building that occurs in person. On the other hand, consider the ease of meeting online and the efficiencies it brings to your practice.
And that’s the point: Your opportunity is to strategically adopt the advantages of online advising and apply them to the post-pandemic world. And you’re going to have to – you’re a hybrid advisor now!
Why you’re a hybrid advisor now
There’s advisor preference: A March 2021 survey by SmartAsset found 33% of advisors polled prefer video calls for client communication.
The bigger factor, though, is client preference. As far back as 2018, research from FactSet reported high-net-worth clients conducting a whopping 44% of their business online. You don’t need a research study to guess that number has gone way up.
What high-net-worth clients want is what ends up happening – meeting online, especially with service providers, carries certain advantages. Expect online meetings to persist and pervade the post-pandemic advising environment.
Key questions for hybrid advisors
Here are a set of questions to ask yourself as you contemplate the future of your practice and client engagement. Answer these, and you have the basis for your go-forward strategy.
Is my client engagement strategy optimized?
Optimizing means providing the most client value, most efficiently. To succeed in the hybrid environment, you’ll need different strategies for different client segments.
For example, HNW clients typically get to call their preference, while low-asset/low potential clients may require a different strategy if you’re going to run an efficient practice.
Segment your clients and pursue strategies that achieve the correct balance for each segment. From there, make individual allowances.
Will my workflow work for both in-person and online advising models?
You have more tools and options than ever for automating and managing workflow. The key attribute is versatility – will your workflow management system work everywhere?
If it’s digital, the answer is yes! Digital workflow (i.e., the least paper and ink required) works better in more situations than analog.
Map key processes now and compare them to your pre-pandemic workflow. What characteristics will you keep from each parent state? Look at your application flow and how digital tools help you streamline this all-important process.
This exercise has big implications for both your own time and office/staff time – now is an inflection point where you can lock in productivity and efficiency gains.
What should my technology mix be?
Plan for digital, remote advising – you can apply digital tools like electronic signatures to the in-person environment, but not vice versa. So digital tools are the default option, and your tech needs to be ready for it.
Invest in this essential advisor technology:
- Touchscreen PC with a large display
- A great stylus that feels like a pen
- Quality webcam and microphone
- Comfortable headset (underrated!)
- Giant monitor (for the office)
What else matters most in the hybrid environment?
Consulting skills! They’ve always mattered, and now remote advising requires another level of skill altogether. Advanced consulting skills like tangible listening, guided reasoning, and visual commitments make a huge difference in online advising. They also transfer to in-person advising.
The most important thing you can do to succeed in the hybrid environment is hone your consulting edge to deliver financial advice clients trust because they trust the process. Consulting skills are the most essential hybrid skills of all!
Welcome to hybrid advising!
Even if you plan on getting back to business-as-usual post-pandemic, your clients aren’t. You’ll thrive in this new environment by increasing the versatility of your communication, workflow, tech, and consulting.
Dan Smaida coaches and trains advisors with banks, IP firms, broker dealers, and RIAs. He also curates the AdvisoryEDGE Forum and writes frequently on consultative skills for advisors and planners. Email Dan at [email protected]
Read more articles by Dan Smaida
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
