As the COVID-19 pandemic creates unexpected and unique challenges for advisors prospecting for new clients, new survey results provide insight for advisors looking to expand their client base.
Findings from Fidelity Investments’ most recent COVID-19 Financial Advisor Community survey show that two-thirds of advisors surveyed reduced their prospecting activity in the first few months of the pandemic, and 51% reported below average results from the prospecting they have done as they adjusted to a fully remote environment.
In fact, three-quarters of those who used email alone reported below-average results. But for advisors leveraging a multi-channel approach—including the use of email, phone and video—74% reported average or above average results with prospecting.
“Increased demand for financial planning and advice has led many firms to rapidly pivot how they engage with prospects and clients in a virtual environment,” says David Canter, head of the RIA and family office segments for Fidelity Institutional. “The crisis has been a catalyst for growth-oriented advisors to embrace more digitally-minded business development strategies.”
While 90% of advisors surveyed are leveraging at least one digital marketing tactic, many indicated that lack of skills and resources are a barrier to marketing their firm effectively, according to Fidelity’s research. To help advisors navigate the business development challenges presented by the current environment and drive lead generation and organic growth, the firm has offered several tips highlighted below.
Not surprisingly, advisors under the age of 35 are using more digital prospecting tools and were more likely to use a combination of video, social media and email. Among these advisors, 41% reported using social media. Phone continues to be the most used channel to connect with prospects, but half of advisors under 35, and 40% of advisors aged 36 to 54 are using video for prospecting during the pandemic.
Comfort with working from home appears to be playing a role in how advisors have managed prospecting, the survey also found. Advisors who enjoy remote work were less likely to have reduced their prospecting than those who would prefer to be in the office.
Many of the changes implemented during this pandemic period will become foundational for advisors when communicating with clients and prospects, Fidelity observes. This reflects both an acknowledgement of the efficiencies of using tools like video conferencing and the evolving advisor demographic, the firm says.
For example, Fidelity’s survey revealed that RIAs anticipate doubling the use of video conferencing with clients, with 14% of client interactions occurring via video versus 7% pre-pandemic. Currently, one-fifth of RIAs reported using video for client meetings.
“It’s encouraging to see advisors embrace more digital tools, but it’s clear that there is still opportunity for them to do more and scale their reach by incorporating more digital marketing tactics in addition to optimizing how they use social media and email,” Canter further notes.
The survey was fielded May 15-21, 2020, with the results based on responses from 408 advisors currently working at a registered investment advisor, broker dealer or wire house.
