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Written by: Derek N.H. Notman, CFP®
The future goes beyond ZIP codes and Net Worth focusing on Client Personalization, Cultivation, and Matching
The world of financial advice, specifically lead generation, is undergoing a seismic shift. The era of cold calls and robo-matching based solely on demographics like zip code and net worth is fading, if not already dead, and is being replaced by a more nuanced and human-centric approach. This new paradigm prioritizes client personalization, cultivation, and matching – a welcome evolution that prioritizes mutual understanding and long-term value creation.
Why the Old Way Doesn’t Work
Picture this: you’re looking for help with your money, you fill out a form online, and next thing you you’re bombarded with calls from advisors whom you’ve been “best matched” with based on your zip code and how much money is in your retirement account. It feels impersonal, transactional, and frankly, a bit creepy. It doesn’t instill much if any trust, which is already a problem, and if anything pushes the client away.
This creates a terrible leadgen experience for the advisor who now is essentially paying for cold leads they have to follow up with, most of which forgot they ever filled out the form or simply don’t respond to the advisor at all. The only one winning in this scenario is the lead generation company that sold the leads, seems like there’s room for improvement.
This outdated approach commoditizes human beings, reducing them to mere data points. It fails to recognize that people are people. We’re emotional beings and look to connect with other people like us. If we can’t connect on a human level then how the heck are we going to dig deep on the unique financial goals, risk tolerance, and values that drive each individual’s financial journey? No wonder lead generation is dead as we know it.
The Rise of AI-Driven Matching: A Symphony of Human and Financial Dimensions
Thankfully, the future is brighter. Enter AI-driven technology revolutionizing the way clients connect with financial advisors. This innovative approach goes far beyond zip codes and net worth. Instead, it delves into the human dimension, considering factors like:
- Expectations – What’s important to us about professional communication and service?
- Personality – What are our shared commonalities and how do we each think and act with money decisions?
- Relationship – When and how do we imagine working together to make financial decisions?
- Demographics – Who are we and who are we looking for in a professional financial relationship?
By focusing on and analyzing these human elements, AI can curate a shortlist of advisors who truly align with the client’s unique needs and aspirations. This personalized approach fosters a deeper connection, establishing rapport more quickly and building trust to lay the foundation for a long-term, mutually beneficial relationship.
More Than Just Numbers: A Revolution in Financial Planning
The impact of this shift extends beyond individual client experiences. It redefines the very nature of financial planning, moving it from a transactional service to a collaborative, engagement rich partnership. By prioritizing personalization and understanding, AI-driven matching empowers advisors to:
- Provide more relevant and tailored advice
- Build stronger client relationships based on shared commonalities, trust and mutual respect
- Have deeper and more meaningful conversations to help deliver superior financial outcomes through personalized strategies
- Focus on long-term value creation for clients
- Drastically reduce the cost of client acquisition (time and money) so advisors can help more people and still be profitable
- Increase ROI by allowing the advisor to spend more time on revenue generating activities (helping clients) versus looking for more clients.
This new era of financial advice is not about replacing human advisors with algorithms. Instead, it’s about leveraging technology to augment and enhance human expertise, enabling advisors to deliver a more personalized, effective, and ultimately more rewarding experience for their clients.
A Future Filled with Possibilities
As AI-driven matching continues to evolve, we can expect even more exciting possibilities. Imagine a future where:
- AI can analyze client data like preferences and demographics in real-time, providing advisors, and the companies they represent, with actionable insights to optimize client-advisor relationships, marketing initiatives, recruiting efforts, and even additional technology investments
- Digital experiences will help clients and advisors make faster and more engaging informed decisions about their financial situation while saving time with the efficiencies that come from leveraging technology
- Gamified learning tools can empower clients to take control of their finances and empower to do what they need to do on their schedule while also making the entire experience more enjoyable and interactive
Although lead generation is dead the future of financial advice is bright, fueled by the power of AI and driven by a deep understanding of the human dimension. By prioritizing personalization, cultivation, and intelligent matching, we can create a future where financial planning is not just about numbers, but about connecting people on a human level at the right time and place, for the right reasons, to ultimately help fulfill dreams and achieve improved financial well-being for everyone.
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