The financial sector is at the heart of every well-functioning market economy. And an integral part of that sector is the highly competitive financial advisory services arena.
Like any other business, a financial services firm has to maintain a forward-moving outlook through customer retention, as well as continual expansion of their customer base. Competition in this arena is strong, but the most important factor in any financial services business success is the maintenance of the highest standards – a level which must be observed and experienced by customers, constantly reviewed, and innovatively improved over time.
This stringent attention to service standards has a number of benefits: enhanced efficiency; better products for consumers; greater innovation; lower prices; improved international competitiveness.
Points to enhance your competitive edge
- Competition between financial advisors is increased when there is a clear understanding that customers can easily switch providers. There is, after all, wide choice in the market. The potential movement of customers should always motivate an alert financial firm to generate: the best terms for customers; continuous improvement in efficiency; and more innovative ways of finding new clients.
- Today, a key element is the uptake of digital technologies. Globally, wealth managers are concerned this may be slow amongst older advisors who – while considered wise and well experienced and therefore popular with clients – may be falling behind with the acquisition of younger clientele who are more digitally savvy and expect their advisors to be so as well.
- While there is still a sense that most people will prefer to establish a good working relationship with their financial advisor, there is consensus that AI may present considerable challenge as the future unfolds. However, even with this concern, a majority of financial advisors today still see other advisors as their main competition in five years’ time.
- With competition rife for new clients, current marketing focus has to consider younger, less wealthy customers – but these are exactly the clientele who hold great potential for the future. And these new kids on the block are extremely canny when it comes to how their money is managed and invested with regard to the new, more fashionable approaches to environmental and social issues.
- There is a direct relationship between the range of services a firm may offer and the perceived level of efficiency. Being able to deliver consistent proficiency on a narrower sleeve of high-quality services, particularly those desired by the wealthy, can prove a distinct competitive advantage.
- Keeping an eye on your unique selling points and how your clients see the industry will help with innovation. Just keeping pace with the competition will never be enough. Strive to break through with fresh ideas and approaches. And this could mean being ready to experiment to a certain degree.
- Customers must see value in what you propose, and how you put forward your solutions. Successful companies balance how they cater to the needs of potential new clients, while maintaining high service value to their existing loyal client base. A good point to remember is that satisfied clients benefit any business by increasing the number of referrals, a value-add that can help to save you time and money on expenditure to increase customer acquisition.
Steps to note:
- Refine products based on continuous review and customer feedback.
- Define a road map for the development of new products, fresh offerings, but keep a sharp eye on what serves your customers best.
- Deliver new features on time and within budget.
- Know your specific target customer.
- Deploy a strategic and comprehensive marketing plan.
As in other sectors, and perhaps more so in the financial advisory services industry, competition is a matter of business acumen, vision, creative engagement, and exceptional efficiency.
Find the top-class professionals who can meet your expectations
Complete Financial & Business Solutions (CFBS) comprises a group of top-class professional financial advisors and business analysts committed to sound financial and business solutions based on a highly personalised approach. Passionate about ensuring peace of mind through the in-depth analysis of individual financial and business circumstances of our clients, we are able to create unique solutions, and regularly review these solutions to consistently meet service expectations and lifestyle goals.
Find us at: www.cfbs.co.za
