Advisor satisfaction with asset manager websites appears to be a key differentiator of whether they intend to invest with those brands, according to a new study.
Among advisors who have overall satisfaction scores of 801 or higher (on a 1,000-point scale) with an asset manager’s website, 91% say they are “extremely likely” to increase investment during the next three months with that firm.
However, just 13% of asset manager websites have earned these high scores. Among advisors who have overall satisfaction scores of 800 or lower with the asset manager’s website, just 40% say they intend to increase investment with those brands.
This is according to J.D. Power’s U.S. Advisor Online Experience Study, which evaluates how financial advisors digitally interact with asset management firms and how that digital experience affects their brand impressions and future intentions to invest client assets with those firms.
Not surprisingly, the research shows that asset managers who have the highest levels of digital engagement with advisors are also achieving the best brand perceptions and reaping the largest inflows of new investment from those advisors. Asset managers with less digital engagement, meanwhile, are falling further behind.
According to J.D. Power, asset management websites have officially replaced wholesalers and legacy relationships as the primary drivers of engagement with investment advisors. While that may be good news for some of the biggest brands, the study further observes that smaller asset managers are struggling to differentiate and showcase their unique value propositions in this increasingly digital-first environment.
This is especially troubling as the research clearly establishes a strong connection between the quality of the digital experience and advisor intention to invest more with that asset manager, the firm notes.
“The numbers make it crystal clear: asset managers that provide an exceptional digital experience for advisors drive significantly higher likelihood of increased investment, but just 13% of asset managers are delivering that superior level of service today,” emphasizes Mike Foy, senior director and head of wealth intelligence at J.D. Power.
Foy observes that the problem is particularly acute among smaller asset managers who have a tremendous need and opportunity to differentiate and highlight their unique strengths on digital, but “often miss the mark with sub-par navigation and tools—and little in the way of compelling brand differentiation.”
According to the findings, the average overall satisfaction score among large asset managers with $1 trillion or more in U.S. non-institutional assets under management is 657. That number falls to 617 among small asset managers with less than $400 billion under management.
The gap in website satisfaction between small and large asset managers is widest in the areas of:
- research information and content;
- availability of client-specific information and material; and
- researching product offerings and information.
Opportunities to Differentiate
Meanwhile, areas in which smaller asset managers have an opportunity to differentiate include:
- increased tool offerings (such as investment comparison tools);
- more prominent placement of those tools on website homepage and navigation bars; and
- more upfront, immediate access to client information.
One area in which nearly all asset managers are falling short on their websites is providing information on environmental, social and governance (ESG) issues, according to the study. Just 29% of asset managers are currently meeting an advisor’s needs when it comes to ESG reporting.
The study evaluates advisor interaction with asset manager websites based on four factors: speed; information/content; visual appeal; and navigation. The study is based on 2,320 total evaluations and was fielded from June through August 2022.
