managing the financial advice lifecycle with crm...maximizer crm for financial advisors is already...

#GrowWithConfidence eBOOK

Managing the Financial Advice Lifecycle with CRM // HOW TO MAXIMIZE YOUR BOOK OF BUSINESS

eBOOK / MANAGING THE FINANCIAL ADVICE LIFECYCLE WITH CRM 02

CONTENTS

03 About the Financial Advice Lifecycle

04 Young Adults/Families

05 Single Adults/Childless Couples

06 Families – New & Established

07 Half/Empty Nesters

08 Retirees & Senior Clients

09 Conclusion

MANAGING THE FINANCIAL ADVICE LIFECYCLE WITH CRM

An essential guide for Financial Advisors

Nearly all your clients will follow the standard Financial Advice lifecycle. A combination of client needs and life event triggers that shape their financial priorities throughout their lives. But with an advisor having on average 300 people in their book, each at different stages of their own advice lifecycle, this can present something of a logistical nightmare.

But logistics and operations shouldn’t get in the way of delivering the exceptional service your clients have come to expect.

That’s where CRM can help. This eBook outlines key stages of the financial advice lifecycle, presenting potential scenarios around client needs and the products that may be required – with examples of how CRM can help you manage your book better.


A FOUNDATION TO PLAN AHEAD

About the Financial Advice Lifecycle

Teenagers/Students Single Adults Childless Couples Young Families Established Families Empty Nesters Mature Adults

Initiate banking relationship (savings/ chequing accounts)

Enter college, workforce (payment vehicles – credit/debt, auto loans)

Marriage (joint chequing accounts, RRSPs)

Birth of a child (RESPs, new home mortgage, insurance)

School aged children(home equity loans, RESPs, insurance)

University – boundchildren (investments, education loans, second mortgages)

Retirement (investments, reversemortgage, estate planning, pension plan distribution)

BUY “STUFF”, TRAVEL

FIRST CAR

UNIVERSITY APARTMENT NEW HOME BIGGER HOME UNIVERSITY

NEW BUSINESS EXPANDING BUSINESS

CHILDREN

RETIREMENT LEGACY

CLI

ENT

NEE

DLI

FE

EVEN

T T

RIG

GER

HOUSEHOLD INVESTIBLE ASSETSSource: PwC and Advocis, Sound Advice, July 2014 HOUSEHOLD DEBT

The financial advice lifecycle is a journey that nearly all your clients will follow. It’s a combination of life event triggers and client needs, which can be anything from a client getting their first graduate job to having children to planning their financial legacy. As an advisor, you’ll meet your clients’ needs with specific products and services at different points of their lives.

The chart shown at the top sums up the financial advice lifecycle in and easy-to-read digestible format. This isn’t completely exhaustive; and it’s not to say that all your clients will follow this path. Some may join you at the very start of their financial lives, typically children of clients, whilst others may be clients new to your practice halfway through the lifecycle. It does however form a foundation on which you can plan ahead.


STAGE 1

Young Adults/Families

The first stage we’ll look at is Young Adults. Typically the children of your existing clients, unless they are particularly proactive with their financial planning, they are likely to be starting their first part-time job and experiencing regular income for the first time. The products required at this stage will be somewhat limited, but it’s worth noting they are still worth the effort, as they may inherit the wealth of their baby boomer parents as demonstrated in our free on-demand webinar The Great Wealth Transfer.

FREE VIDEO ON DEMAND THE GREAT WEALTH TRANSFER

WATCH NOW

LIFE EVENT TRIGGER

Starting their first part-time job.

CLIENT NEEDS

Funding post-secondary education,

first car purchase.

YOUR PRODUCTS AND SERVICES

Financial planning, allocating funds,

RESPs.

What CRM can do for you

• Identify clients’ children – the household setup in Maximizer CRM for Financial Advisors allows you to track and manage all members of a household, even if they aren’t currently your primary client.

• Identify opportunities for gifting funds – depending on the products and services they or their parents are currently using.

• RESPs – Use the configurable dashboards and searches to identify children who are about to reach the RESP limit and get ahead of the curve when it comes to recommending different products for the next step.

https://www.maximizer.com/library/great-wealth-transfer-millennials-webinar/

https://www.maximizer.com/library/great-wealth-transfer-millennials-webinar/


STAGE 2

Single Adults/Childless Couples

The next stage we’ll take a look at is single adults and childless couples. Likely to be starting out in their careers or still in the infancy of their working lives, now is it he time to instil good financial habits if you have any of this group as clients. They’ll be looking at a much wider range of products and services and possibly looking to finance their first big purchase, normally their home.

LIFE EVENT TRIGGER

Entering the workforce, first home purchase.

CLIENT NEEDS

Paying down debt, mortgage deposit,

funding further education.


Financial Planning, RRSPs, TFSAs, investments.


• On-board new clients with full KYC forms – Maximizer CRM comes preconfigured with 700+ data fields specifically for financial advisors, capturing all the data you need for KYC forms.

• Capture financial planning data, investments & insurance – A solution like Maximizer CRM for Financial Advisors is configured to capture the data and manage the processes associated with the full suite of products and services offered by your practice.

• Identify younger clients who don’t have any insurance products – Searches and dashboards offer quick and easy ways to identify up-sell and cross-sell opportunities. One such example is with life insurance policies which is often left behind by younger clients or those without families.

0% 76%29%of Millennials said carrying too much debt was their main financial concern.


STAGE 3

Families – New & Established

This is where things start to get more complex - as your clients enter the middle stages of the financial advice lifecycle they are going to start purchasing more products and services from you. Here they’ll likely be new families or established growing families. As they enter this stage their earnings grow and so too do their expenses. You’ll be looking at your book to find out who you can up-sell different products to as well as start tracking new members of the household.


• Setup and track the stages of members of the household – As mentioned, Maximizer CRM for Financial Advisors is already preconfigured to do this.

• Identify cross-sell/up-sell opportunities for this group of clients – with searches and dashboards that can be tailored to your own search criteria.

• Automate processes for managing clients – pre-configured workflows built in Maximizer allow you to manage you clients with a consistent process, ensuring accuracy, efficiency and adherence to compliance.

LIFE EVENT TRIGGER

Children, purchasing a bigger or a second

home.

CLIENT NEEDS

Paying down debt, ramping up

investments, insurance for “what-if” scenarios.


Portfolio management, investment advice,

retirement planning, insurance products.

When you manage clients by household you’re able to identify opportunities for new products for example, how many homeowners require insurance? Do they have any children ready for an RESP?

Your CRM can help with more than just growing your book. With automated business processes and task management it can drive efficiencies in your day-to-day operations, resulting in more time spent nurturing client relationships.


STAGE 4

Half/Empty Nesters

Children are a joy, but they are also very expensive. As your clients’ children start to leave home, it can also coincide with their peak earning years, which means it’s prime time to ramp up their investments, pay down debt and start planning for retirement. Where they are during this stage will affect the combinations of services they will require. Retirement plans will also be a consideration, plans for worldwide travel or adopting the snowbird lifestyle can be expensive.

There is also another reason why you should approach this stage with caution. More and more boomer parents are helping their adult children, with a recent CIBC survey showing that 76% of parents would consider giving their children money to move out, purchase a home or get married. You’ll just need to be careful it’s not to the detriment of their own financial plans or security as they inch closer to retirement.

LIFE EVENT TRIGGER

Children leave the family home.

CLIENT NEEDS

Maxing out RRSP contributions, paying down debt, starting retirement planning.


Portfolio management, Investment Advice,

Retirement planning, Insurance.


• Age and date triggers of the members in the household – Create searches and dashboards that show the clients you need to talk to and when.

• Profile information around the clients’ story – with detailed data capture you can work on a financial plan right for them.

• Highlight products and services currently purchased.0% 76%29%

of Parents would consider giving their children money to move out, purchase a home or get married.


STAGE 5

Retirees & Senior Clients

This is the moment your clients have been planning for - retirement - but even once they reach this milestone there is still work to be done. You’ll likely be looking to maximize their lifelong investments in line with their retirement goals, potentially looking for fixed income assessments like annuities or insurance policies. Alongside helping them maintain their desired lifestyle you’ll likely be looking at legacy and estate planning too.


• Estate planning and disposition – Plan your client’s legacy with the full household mapped out and detail any estate planning strategies with preconfigured data fields.

• Date and age triggers – Get ahead and create searches that instantly show your clients turning 65 for retirement or 71 for when they need to turn their RRSP into an RRIF.

LIFE EVENT TRIGGER

Retirement.

CLIENT NEEDS

Retirement income, legacy planning.


RRSPs to RRIFs, estate planning.


CONCLUSION

Total Practice Management

The Advice Lifecycle forms the foundations of a client’s financial journey, helping you to map out their potential needs. However as we have seen, the lifecycle model doesn’t quite match reality. People don’t always follow a predictable linear lifepath – and you will acquire clients at different stages in their lifecycle. Having to manage hundreds of clients at once – each at different life stages – poses a huge logistical challenge that can harm service quality.

But a solution designed with you and your clients in mind, like Maximizer CRM for Financial Advisors, empowers you to deliver better service at scale. On top of that, you’ll be able to mine your data and segment clients more effectively, to pinpoint the up-sell and cross-sell opportunities that enhance your revenues without necessarily adding to your workload.

LEARN MORE @ MAXIMIZER.COM

https://www.maximizer.com/crm-financial-advisors/

#GrowWithConfidence

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Copyright © 2018 Maximizer Services Inc., Maximizer Software Ltd., Maximizer Software Solutions Pty. Ltd. All rights reserved. Maximizer® CRM is a registeredtrademark of Maximizer Software Inc. Maximizer CRM, Maximizer CRM Live, Maximizer Contact Management, and other product names may be trademarks of their

respective holders. This is for information purposes only. MAXIMIZER SOFTWARE INC. MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, IN THIS SUMMARY.EBFS-001-20181005

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