Inbound Client Call Volumes Multiply After September 30th;
Clients Afraid, Angry and Anxious
Tech Under-utilized, But in Demand: Advisors Plan Future
Investment to Improve Efficiency, Correspondence and Relationships
NEW YORK, Dec. 10, 2008 (GLOBE NEWSWIRE) -- Nearly half (42%) of advisors are considering upgrading their current technology systems, and among them, more than half (57%) are interested in a new CRM or personalized email service, according to E*Assist's 2008 Advisor-Client Communication Survey. Released today, the Company's first-ever advisor study examined how advisors have been communicating with clients since the original market drop in late-September, what they are hearing from their clients, and how they intend to use technology to improve efficiency and client service going forward.
Strong interest in technology investment despite a recession that is particularly hard on the wealth management business, may be part of an effort to manage and preserve volatile client relationships. The findings indicate that many advisors (45%) have seen inbound call volumes at least double, with some reporting a tenfold increase, since the market drop. When asked about the prevailing emotional state of clients, 84 percent described them as "Anxious" (69%), "Afraid" (12%), or "Angry" (3%).
Efforts to proactively communicate with clients appear to have been inadequate. Nearly half (47%) of advisors communicated with less than half of their clients immediately following the market drop, and 34 percent communicated with only "very few" during this critical time. At the time the survey was conducted, 15 percent had still not contacted all of their clients. Among the technology adopters in the group who have sent email correspondence, the majority are not optimizing the technology's capacity for customization. Only 14 percent sent emails personalized to each of their client's investment objectives, while a staggering 58 percent sent the same standardized email to every client.
"This data underscores what we are witnessing in the wealth management industry. Among technology adopters in the advisor community, we are hearing from people who are eager to improve their existing systems with a technology platform that streamlines their operations and allows them to integrate and leverage existing technologies they have already acquired," stated Ted Tsung, chief executive officer of E*Assist. "The recent market activity has further underscored both the importance of technology in maximizing client relationships, as well as the necessity for the efficiency it delivers to firms struggling to cut expenses and maximize resources wherever possible."
Commissioned by E*Assist, the study polled 114 advisors representing clients with a median asset size of $500,000 - $1 million. These respondents described themselves as recurring fee-based (96%), commission-based brokerage (18%) and one time advice (25%).
For a more detailed discussion of the responses highlighted in this release and others not included, please download an executive summary of the findings at http://www.eassistllc.com/Advisor_Survey_Dec_08.html. To take the survey, follow this link: http://www.zoomerang.com/Survey/survey-intro.zgi?p=WEB228G95QN2T5.
About E*Assist
Founded in 2006, E*Assist partners with companies in the financial advisor community to facilitate immediate bottom-line impact and long-term business growth through an automated approach to improved client service, operational effectiveness and compliance management.
The E*Assist practice management platform is designed to empower wealth manager and home office collaboration. It is the industry's first and only complete practice management solution that enables producers, Offices of Supervisory Jurisdiction (OSJs) and Home Officers to use a single dashboard to drive all recruiting, on-boarding, compliance, transaction processing & monitoring, client analytics and servicing activities. The result is unparalleled compliance oversight, workflow management, client service, and process improvement. E*Assist's technology platform simplifies and automates operational and client management issues, while facilitating increased client contact and productivity. E*Assist's offices are located in New York, NY. For more information, please visit www.eassistllc.com.