Is the tech stack obsession hurting client acquisition and growth?

Adele Martin, the founder of My Money Buddy and The Savings Squad podcast, has shared an intriguing observation with her followers on LinkedIn.

“Ok adviser buddies, I’ve come across a trend among financial advisers that’s getting me a bit fired up,” Ms Martin wrote.

“They meet me for the first time, and what’s the first thing they want to discuss? Their tech stack and fixing their back office.”

Ms Martin shared that a licensee she is acquainted with has gone to the extent of prohibiting their advisers from uttering the terms “tech stack” or “technology”.

“They saw right through the smoke and mirrors. What they needed, plain and simple, were more damn clients,” she said. “And let me tell you, I couldn’t agree more.”

According to Ms Martin, a self-confessed “tech nerd”, what advisers need to be prioritising is marketing and attracting new clients.

“Fixing your back office isn’t going to cut it, my adviser buddies,” she said. “You know what will? Money from seeing more of your ideal clients.”

Ms Martin opined that many advisers shy away from marketing because it requires “putting themselves out there”.

“It’s personal, and if it fails, they take it to heart and feel rejected,” she said. “Instead, they waste an absurd amount of time researching CRMs, client portals etc.”

“They fool themselves into thinking they’re being productive. But let me tell you, it’s just an excuse to play it safe. If something goes wrong, they can blame someone else.”

Ms Martin suggested advisers should invest an equivalent amount of time into a “kickass marketing strategy that magnetizes your ideal clients”. This, she suggested, could bring in “$10,000 clients” weekly.

“That’s an extra $500k+ in extra revenue. Think about all the problems that cash could solve!

“Let’s keep it real here: it’s so damn tempting to hide behind technology. It feels safe and cosy, doesn’t it?

“But guess what? Playing it safe won’t get you far.”

Ultimately, she encouraged advisers to “step up” and embrace the “discomfort of marketing”.

“Put yourself out there like a financial rockstar.”

The Netwealth 2022 AdviceTech survey found that more than three-quarters of advisers consider an integrated tech stack as key for an advice practice to succeed and improve staff satisfaction.

Although comparable research specifically focusing on marketing is lacking, a separate report by Netwealth found that marketing, particularly that of the digital nature, is key when trying to attract new clients.

The survey, which aimed to gauge consumer preferences when it comes to sourcing an adviser, concluded that “marketing is part science, part art”.

Namely, it revealed that 48 per cent of people leverage online tools to find a financial adviser, with Google searches the most common digital tool used by respondents (26 per cent), followed by online ratings and review websites (20 per cent), online forums (11 per cent), and social media (8 per cent).

“There is no silver bullet, and it takes time — trying new approaches and learning which tactics work best and those that do not,” the Netwealth team said.

Others too, like BT, have shared that in the current day and age, a strong online presence is expected by clients.

“In some ways, the pandemic has simply accelerated the inevitable,” BT said in a recent report titled A digital marketing guide for financial advisers.

BT pinpointed that as a time-poor adviser, “a good digital marketing strategy can do a lot of the hard lifting for you, keeping you top of mind with clients”.

“By getting some fundamentals in place, you can save precious hours and open up new possibilities to service clients with a ‘one to many’ approach. Doing digital well can also help to grow your practice.”

Regarding social media in particular, BT revealed that according to Oberlo, internet users spend an average of 6 hours and 48 minutes per week watching videos online.

As such, it recommended that whether it be a “client video”, a story about “how proud you are about one of your clients” or sharing the success of a team member who has passed an exam, “your audience will appreciate you spreading positive news”.

While BT acknowledged that getting started with video is often the hardest task, it offered some ideas.

“Host a Q&A, ask your clients to send in their questions, interview a client and their family members, film short introductions to your team members,” BT said, and added that explainer videos that break down financial concept in simple terms are also highly efficient.

Finally, BT reminded that when it comes to marketing, “all roads lead back to your website”.

“Whether it be a social media post, content in your newsletter, or a listing on one of the adviser directories, the content will probably be hosted on your website. And first impressions count — you only have a matter of seconds to put your best foot forward.”