Survey from J.D. Power shows successful relationships depend on effective digital engagement
For better or worse, the COVID-19 pandemic has forced entire industries to adopt more digital modes of engaging with their customers – and that includes the asset management industry.
In a newly released survey, J.D. Power found that asset managers with the highest levels of digital engagement with advisors are widening their advantage over their less tech-inclined peers.
“For asset managers in the current marketplace, forging and maintaining successful relationships with advisors is increasingly about effective digital engagement,” said Mike Foy, senior director of wealth and lending intelligence at J.D. Power. “That trend has been occurring for some time, but it has really ramped up during the pandemic, with wholesalers unable to meet face to face and advisors citing higher levels of stress and increased workloads.”
Among the asset-management firms included in the survey, the top four scorers across multiple digital experiences – Capital Group, BlackRock, JP Morgan, and MFS – were also revealed to have the highest levels of intent to invest among advisors.
The pandemic has also left advisors more pressed for time than ever. The report found increased anxiety and stress reported among 58% of those surveyed by J.D. Power, and longer work hours for 25%. Because every second counts, the survey found that the most impactful digital engagements are those offering easy access to asset management content and resources.
Webinars enjoyed the largest spike in advisor engagement: 56% of the advisors surveyed this year said they’ve attended one held by their primary asset management firm in the past six months, compared to 34% who said the same last year. Email, websites, and social media have also reportedly seen a year-on-year jump in utilization.
The strength of the digital push notwithstanding, asset managers still need to discern which segments of advisors are open to digital vs. those who still prefer personal interactions.
The survey found that advisors with at least 16 years of industry experience were more likely to embrace digital interactions with asset managers compared to those who’ve had just five years at most in the industry. Independent advisors and those who primarily use ETFs were also found to be more digitally inclined than wirehouse brokers and those who invest primarily in mutual funds.
