Product Manager Elizabeth Alexander dives into the value add for investment teams looking to better understand the client journey.
Product Manager Elizabeth Alexander dives into the value add for investment teams looking to better understand the client journey.
Here at Ethic, we spend a lot of our time speaking to advisors about the client journey. However, investment teams may also find value in this proposition. Today, Product Manager Elizabeth Alexander dives into the relationship between the client journey and better client education. By better understanding the ins and outs of how a client interacts with their portfolio, investment teams can glean stronger insights into client needs and build more aligned strategies.
Here are some key takeaways from Elizabeth’s exploration:
- Integrating Client-Centric Approaches into Investment Strategies: While a client-centric approach is traditionally emphasized for advisors, investment teams can also greatly benefit. Tools like Ethic’s Values Mapping Exercise (VME) and Healthcheck can help teams gather insights on clients' values and needs, leading to more personalized and effective investment strategies.
- The Role of Client Education in Strengthening Relationships: Ongoing client education is crucial for retention and trust-building. By educating clients about their investments and the market landscape, investment teams can foster deeper client engagement, leading to more informed and confident clients. Tools like impact reporting and our Education Hub can aid in streamlining this process.
- Leveraging Client Feedback for Continuous Improvement: A thorough understanding of the client journey enables investment teams to gather valuable feedback, driving innovation and continuous improvement in their services. Regularly reviewing and refining processes can help firms ensure long-term client satisfaction.
Using Product to Understand Client Needs
In the realm of investment management, the client journey is often a focal point for advisors, but it holds substantial value for investment teams as well. These teams grapple with crucial decisions around asset allocation, risk, and strategies that balance their clients’ financial and sustainability goals. However, by using product to support a more client-centric approach, investment teams can construct strategies that are better attuned to client needs. An intuitive and simple client journey can make it easier for clients to tell teams what they care about and what they need. This can give investment teams greater inputs and enable them to build investment strategies that lead to better outcomes for their clients and their portfolios.
At Ethic, tools like the Values Mapping Exercise (VME) and the Healthcheck can be instrumental for investment teams aiming to craft personalized investment strategies. The VME helps gather crucial input about client values and priorities, enabling investment teams to construct strategies that reflect these insights. The Healthcheck tool then applies the strategies developed through the VME to assess and better understand the client's current portfolio. This comprehensive approach not only aids advisors in relationship management but also equips investment teams with the necessary tools to design portfolios that are closely aligned with clients' financial and sustainability goals.
Client Education
Investment teams should also consider that, after the first trade, ongoing client education and empowerment is a key component of the client journey. Educating clients about their investments and the general market landscape helps them feel more involved and informed. This empowerment leads to improved client retention as clients who understand their investments are more likely to stay committed. Efficient communication with knowledgeable clients allows investment teams to spend more time considering and building bespoke strategies, resulting in better-tailored investment solutions.
Informed and empowered clients are also better equipped to communicate their desires and expectations, leading to a deeper understanding and appreciation of the services provided. Furthermore, better educated clients tend to be more confident in the decisions made on their behalf because they are offered a deeper level of transparency, which can create a stronger bedrock of trust in the investment team. This enhanced client relationship gives investment teams more time to focus on other critical areas of their business, such as innovating new strategies and honing asset allocation. By prioritizing client education, firms can foster trust and loyalty, which are essential for long-term growth.
Tools like the Reporting & Education Hub and Insights/Content can streamline the client journey through intuitive and informative automated reports. These tools save investment teams time by reducing the need for extensive commentary and making oversight easier. They also further contribute to building trust by making clients more comfortable with the investment team’s approach. By investing in such tools, firms can simplify scalability, spend more quality time with clients, and offer greater clarity on investment decisions. This leads to a more efficient and productive workflow, allowing teams to focus on strategic growth and client satisfaction.
The Opportunity for Better Outcomes
Client education and a well-designed product can be pivotal in driving innovation and continuous improvement within investment teams. By deeply understanding the client journey, investment teams can gather valuable feedback that informs the evolution of their services and processes. This feedback loop allows teams to identify gaps in the client experience and adapt their offerings to meet evolving needs, ensuring that the firm remains relevant and competitive. Through a thorough review of the client journey — not just by advisors but by the entire investment team — firms can make iterative enhancements to their processes, services, and communication strategies, continuously refining their approach to better serve their clients.
This focus on client education and product design directly contributes to client retention and satisfaction. A well-informed client who experiences a seamless and tailored journey is more likely to trust and remain loyal to the investment team and the firm. By consistently meeting clients' needs and adapting to their preferences, firms can foster a positive client experience that builds confidence and ensures long-term satisfaction. Ultimately, a product that supports both education and a deep understanding of the client journey helps create a foundation for lasting relationships and sustained business success.
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Disclosures:
Ethic Inc. is a Registered Investment Adviser located in New York, NY. Registration of an investment adviser does not imply any level of skill or training. Information pertaining to Ethic Inc’s registration or to obtain a copy of Ethic Inc.’s current written disclosure statement discussing Ethic Inc.’s business operations, services and fees is available on the SEC’s Investment Adviser Public Information website – www.adviserinfo.sec.gov or from Ethic Inc. upon written request at support@ethicinvesting.com. Information provided herein is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Any subsequent, direct communication by Ethic Inc. with a prospective client shall be conducted by a representative of Ethic Inc. that is either registered or qualifies for an exemption or exclusion from registration in the state where a prospective client resides. Information contained herein may be carefully compiled from third-party sources that Ethic Inc. believes to be reliable, but Ethic Inc. cannot guarantee the accuracy of any third-party information.
Ethic Inc. does not render any legal, accounting, or tax advice. Ethic Inc. recommends all investors seek the services of competent professionals in any of the aforementioned areas. Ethic Inc. cannot provide any assurances that any investment strategies, simulations, etc. will perform as described in our materials. ALL INVESTMENTS INVOLVE RISK, ARE NOT GUARANTEED, AND MAY LOSE VALUE. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY.