Technology: The online strategy that counts the most

Social networking is all the rage, but there are better ways to add value for clients, writes True Potential senior partner Daniel Harrison

It is hard to scan the news without reading about the boom in social networking. From blogging to tweeting, it seems everyone has an opinion on how to interact with other people.

The BBC recently reported an 886% increase in Google Android phone shipments, and a quick glance at this week’s trade papers confirms this is a hot topic in financial services too.

Apparently, we all need an online strategy, as well as a way of keeping in touch with those we do business with. Social networking sites, such as Facebook and Twitter, are the buzzwords for some.

However, there might be a better place to start: one that provides definitive client loyalty and IFAs with sustainable income.

I’m not bashing social networking. I use it myself and think it is a great way of keeping in touch with friends (and organising the rugby team). However, I am of the opinion that it is acting as a bit of a red herring when it comes to what IFAs should be doing.

Put yourself in your clients shoes and ask which type of communication would you rather see from your IFA: a tweet about regulation (or worse, the weather), or a real way to interact with you and what is important to you.

Think about your own experiences on the web and what you are looking for when you go online. You are most likely have logged onto your banking to view your balance, a type of information that is personal to you. And you are not alone in doing this: more than 50% of UK consumers (22 million) regularly use online banking, 95% of whom are interested in their account balance.

Now think about the type of information you hold regarding your clients. You will know them better than any other professional in the country: their personal details, income and, most importantly, their net worth. So why shouldn’t IFAs be capturing the same consumer demand as the banks? After all, if a client is interested in their current account they are going to be very interested in how their portfolio has performed on any given day or month.

Getting a client to regularly log onto a site that contains this information, supplied by their IFA, is the real win here. Be it via a laptop or mobile application, not only is your client actively using a service provided by you, which helps to build value in the relationship, it empowers them to take a real interest in their money while being in the sanctuary of your web space.

Having an efficient and easy-to-access online strategy that encourages clients to self-service and then come direct to you with questions, all in a secure environment, makes it possible to continue to look after everyone and justify the income at the same time, without needing to cull any clients. It also helps to provide a continuing service to your clients in the post-RDR world, instead of just tweeting about it.