Executive Summary
Financial planning is a relationship business, but in our increasingly mobile and time-stressed society, it’s harder than ever to maintain face-to-face relationships. Not just because it may be difficult to find a time to schedule an in-person meeting with clients, but also because many clients relocate and aren’t even in the area for a face-to-face meeting!
Yet with the rise of broadband internet access, it is now increasingly feasible to use video to connect with clients at a distance. Of course, many advisors already communicate with clients at a distance via emails and telephone calls, but the significance of video is that it literally puts the “face-to-face” back into a distance-based relationship. You can see the client, the client can see you, and all the non-verbal communication that is lost in a telephone call or an email comes back into the conversation.
And notably, video is relevant not just for maintaining face-to-face relationships with existing clients, but as a means to build a relationship with new clients as well. In fact, arguably it may be even more feasible than ever for advisors to build relationships with new clients at a distance, as video allows even those who have never “met” in person to get to know each other, face to face!
The Challenge Of Working With Clients At A Distance – Losing The Face To Face Connection
Historically, the delivery of financial planning has been a face-to-face proposition. Advisors meet with their clients in person to establish the trust necessary to form a fruitful financial planning relationship. We break bread together, and spend time together getting to know one another. Data is gathered in person, and plan recommendations are delivered in person.
Yet the reality for almost any experienced financial planner is that while all of the client relationships may have started as an in-person face-to-face meeting, many are not that way anymore, given our increasingly mobile society. The client who started out local got a job transfer to another part of the country. The working client successfully retired, and in the transition moved to a warmer and sunnier climate. In some cases, it was the planner who relocated, perhaps to support a spouse’s job, or be closer to family. Whatever the cause, the advisor now has relationships that started out in person, but no longer afford much opportunity for in-person meetings.
Fortunately, modern technology does allow the means to maintain some connection, whether it’s by telephone check-in calls or communicating via email. Yet the reality is that it’s hard to have the same level of connection and relationship through phone calls alone, especially when it’s time for a difficult conversation. We strain to hear the subtleties of the client’s tone of voice for any clues about how they’re handling the situation. And if it’s a couple, there’s no way to read the responses of the spouse who isn’t speaking up on the call.
Similarly, email may be efficient for brief interactions or relaying factual information, but it is often problematic when it comes to more emotional issues, as written text alone often fails to communicate the emotion and subtext of the conversation, for better or for worse. And of course, some people are better (or worse) writers in the first place. But even for the most gifted of written communicators, some conversations just can’t be had via emails alone.
In practice, some firms will even periodically travel to distant clients, just to maintain the opportunity for in-person face-to-face connections. Yet the challenge is that as the number of distance-based clients grows, so too does the volume of travel, which can eventually become overwhelming. While flying out to have a meal might be feasible for a small subset of top clientele, it is not very feasible to service an entire client base, or even a large percentage of it, in most cases.
Using Video To Bring Back The Face-To-Face Meeting
So what can be done to maintain a deeper relationship with distant clients as a virtual advisor, short of traveling regularly to see each one of them? The answer in a word: video.
While just 10 years ago, the (limited) distribution of high-speed internet meant that many people had no means for watching and streaming video from their home (or office), the explosion of high-speed broadband at home (from 3% of households in 2000 to 70% by 2013) has resolved this issue for most of the country. In other words, most homes have internet connections with download speeds capable of supporting video… as evidenced by the rapid rise of NetFlix and similar on-demand video services.
Yet the expanded accessibility of high-speed internet isn’t just about the potential to watch videos and movies, but also to use video as a two-way communication tool. Most laptops and modern computer monitors have a webcam built in, to support the ability to do video chat with services like Skype. Front-facing cameras on tablets and smartphones make it feasible to have video conversations from virtually anywhere, using tools like Facetime or Google Hangouts.
The significance of these tools, though, is that with video, communication is once again face-to-face. Literally, video enables a conversation where the participants can see each other face-to-face, in a manner that simply does not exist with telephone calls and email correspondence. Given research suggesting that the overwhelming majority of communication actually comes from not just the words we say but the non-verbal cues (much of which like gestures, posture, and facial expressions, we have to see to perceive), the availability of video is a dramatic expansion and enrichment of the communication process. In other words, video allows the client to maintain a deeper connection with the advisor; we are social beings, and we like to connect visually.
In other words, the use of video brings back much of the key parts of communication that exists in an in-person meeting, but is lost with a distant client where the interaction is solely by telephone and email. The interaction with the client may not end with a handshake like a physical in-person meeting, but it is still a face-to-face meeting!
Tools For Doing Video Meetings With Clients
So what kinds of tools are available to do video meetings with clients?
The first key requirement is to recognize that meeting virtually with a client typically will require both sharing of information – e.g., statements, performance reports, financial plan results, etc. – that the advisor and client need to see together, as well as the need to actually be able to see each other (e.g., via a webcam). This means effective software tools must allow for both the simultaneous “screensharing” of material and the use of a “video chat” where the participants can see each other.
One option for doing this is the popular GoToMeeting platform, which makes it possible to both screenshare information with a client, and include a window for video feeds where the advisor and client can see each other. Another option is the premium version of Skype, which makes it possible to simultaneously screenshare a document and include a video feed. By contrast, though, the Google Hangouts platform forces the advisor to either screenshare a document or view video, but makes it impossible to do both simultaneously.
In considering the options, the virtue of Skype is that from the client perspective, many are already familiar and comfortable with the platform; however, GoToMeeting currently has more functionality, such as creating calendar invites with meeting details that can be easily sent to clients and incorporated into the advisor’s own calendar tools (e.g., Google Calendar or Outlook).
Notably, as virtual meetings become more popular, new/different software tools are being launched regularly that may trump even the popular GoToMeeting and Skype options; again, the key is that whatever solution will be used must be able to share documents and include a bi-directional video feed (advisor sees client and client sees advisor), and ideally is convenient to set up meetings, send invitations via email to the client with the requisite meeting link, and integrate easily with calendar software.
Of course, it’s also important to note that doing video meetings with clients necessitates having some sort of webcam so the clients can see you. While many/most laptops have built-in webcams, as do many computer monitors, and most tablets, from the advisor’s perspective it’s worthwhile to consider spending a little extra to ensure having a high-quality webcam that will convey professionalism. I use the Logitech HD Pro C920, and other similar webcam devices from the respected Logitech line are a good option to consider as well.
Notably, doing video conferencing with a client also necessitates the client having a webcam as well. Again, many clients may not realize that they already have one included with their laptop, computer monitor, or tablet (or even a smartphone, but from a client’s perspective, it will be difficult to see/view a screenshared document on such a small screen). For those that don’t, the advisor might even consider purchasing one (e.g., via Amazon) on behalf of a client and having it delivered to them, and/or even purchasing via a store like BestBuy and having Geek Squad go out to the client’s house to install and set it up; all-in, the cost even with installation would likely be no more than $150 - $200, a modest price given that many advisory firms generate $2,000/year, $5,000/year, $10,000/year, or more from some clients! And not only is it a nice service for a client, and for even a “moderately” affluent client, the “return on investment” for the advisor will come the first time a meeting is shorter, doesn’t have to be cancelled/rescheduled, and/or the advisor simply saves a drive going out/back to visit with the client in person!
Using Video Chats To Engage Prospective Clients As Well
Notably, while video meeting tools can be effective as a means to keep the “face-to-face” connection with a client who has relocated out of the area, ultimately video meetings are relevant not only for existing clients, but prospective ones as well. After all, the growing capabilities for online search to find advisors, and inbound marketing strategies for niche advisors to attract new clients to them, will make it increasingly feasible for consumers to find “the best” advisor for their needs, regardless of geography – which means more and more advisors may find themselves talking to potential new clients who are not local.
And in point of fact, video may actually be especially powerful as a tool for establishing a new relationship with a client at a distance, as the lack of any prior in-person meetings means video may be the only means of establishing rapport and good communication with a “face-to-face” meeting. While ‘static’ video on a website can help facilitate this process – e.g., an advisor “bio” video that clients can view to get familiar with the firm – it’s still not the same as ‘live’ two-way communication to build rapport.
Accordingly, for virtual advisors looking to create a location-independent practice and develop business with new clients online – and/or who may simply find distance-based clients attracted to or referred to them – consider adopting video as a means to do an “approach talk” with a prospective client as well. Arguably, for what will otherwise be a distance-based relationship, that face-to-face video opportunity is more important than ever!
So the next time you field a call or email from a prospective client (who isn’t local), consider responding “We like to keep a face-to-face connection with all of our clients, even the ones we work with at a distance. So in evaluating whether we’re a good fit, we’d like to get to know you via a video meeting. Here are the details to connect and meet us face-to-face…”
So what do you think? Have you ever conducted client meetings ‘virtually’ using video? How did you find it contrasts with “just” using the telephone to talk with distance-based clients? Were your clients receptive to using the technology? Have you ever met with a prospective client via video?
Nice piece Michael. I have transitioned my business to almost exclusively video meetings. Even for my local clients. I still meet with some in person, but I prefer video. I do quite a bit of screen sharing and actually find that a video meeting is more effective for reviewing information and providing education on a computer screen than a face to face meeting. It is easier to manage.
Also, I find that in video meetings, we tend to stay on task more – there is less socializing. I enjoy my clients quite a bit and our interactions as well, but I want our meetings to be productive as possible.
Video meetings are an amazing time saver, even for local meetings. As such, I can charge my clients far less than I would have in the past (I know many advisers do not view this as an enhancement but I do).
I use the free version of Zoom.us and could not recommend it any stronger. It is excellent. And they will provide personal guidance to help tech challenged advisers understand the platform. I will upgrade to their pay version soon.
Mark,
Thanks for sharing!
I’ve noted the ‘efficiency improvement’ of meetings as well – staying on task a bit more. Still some socializing, but it’s less than in-person – which I think we often do because we have to fill the time scheduled for the meeting on the calendar!
Thanks for the Zoom.us suggestion as well. Hadn’t seen it, but will definitely check it ou!
– Michael
I 2nd the recommendation for Zoom.us – I use it for virtual meetings and they have a great webinar platform as well that I prefer to GoToWebinar, etc.
Clients and others love Zoom as well
Amen to using video chats. To me, they’re much more like in-person meetings than they are like phone calls. It’s a must for far-away clients, but I have a local couple who prefer it to meeting in person. (I shower before every meeting, I swear. They just find it more efficient, as do I.)
I’ve been using FaceTime and the free version of Skype, so no screen-sharing, but after reading Michael’s post and the comments I’m going to look into Zoom.us and the free version of GoToMeeting (neither of which I knew existed until just now). Zoom allows only up to 40 minutes per session for their free version; as my meetings often last longer than that, I’d need the pro version. I don’t see a similar limitation with the free version of GoToMeeting.
Hey Neal. I have never run into that time limitation with Zoom. In fact, I just had a 50 minute international video meeting with a client with no problem.
Thanks, Mark. That’s good to hear. On Zoom’s ‘Plans and Pricing” page, in the Basic column, for the Group meeting duration it says “40 minutes per meeting.” (All other plans are Unlimited.) Perhaps they don’t enforce it. I’d want to test it over a couple of hours, though, just to be sure — the last thing I’d want is to be shut down in the middle of a meeting!
I use Cisco WebEx free version.
Like another commenter I find that this tool has advantages over in person i.e. we can face each other at the same time as reviewing a document. In person is always nice, but I have to either turn away from a client to face a large screen, or if using a PC, all huddle around the screen. If not looking at a document, in person is still a warmer situation, but virtual allows for clients who are traveling, moved out of the area, etc.
I’ve been using the paid version of GoToMeeting for the past few years because I wanted the capability to host larger meetings that the free version. I really like GTM because I can send clients an emailed invitation for the meeting, which they then can import into their calendars. Just before the meeting time, GTM will start up as a reminder that I need to start the meeting. I can run the webcam as well as show my clients their MoneyGuidePro plan in real time. So, we can work on their plan together – collaborative planning – while in different locales.
As noted earlier, the meetings tend to be shorter, which can be a benefit to me and my clients. Some clients enjoy the social aspect of coming in person and I set their annual flat fee retainer price accordingly. The GTM is also perfect when we need to work on something together such as adding their accounts to Yodlee or Blueleaf. I can see what they are doing and make suggestions and walk them through things. No need to drive to my office when we only needed a few minutes together.
I love it.
I’ll echo Mark’s observations. The meetings are really focuses, we stay on topic, but still have time to share thoughts and see each other. The socializing is abbreviated, but still there. I’ve found that I’m able to connect decently with long distance clients I’ve never met in the flesh. Even with local meetings, if they are to be brief, why waste windshield time. I can meet with a client for 15-30 minutes, get the job done, feel as if we’ve “connected” and all in less time than it would take either of us to drive to a site. I now have clients spread across the country and it seems to work rather well. I used to be mostly a New England guy for the client base; now there is no constraint. So – easier, cheaper, quicker. What’s not to like? I use GoToMeeting.
Couldn’t agree more on the windshield time, JR! Also, we have challenging weather here in the Upper Midwest as you do and this helps make sure that we can still meet.
I switched from GoToMeeting to Anymeeting last year as the latter is much easier for clients to use as there is nothing to download. This is especially helpful for clients using their office computer that may not allow any kind of downloads.
Hi Matthew.
I also tried Anymeeting this year. It’s a good platform for the investment (I would recommend paying for it vs. the free version with ads). One limitation I found was that on one of the two screening modes they provide, the screen is small and cannot be made larger. The mode was one that I like using often. IF in the future, you ever cancel, watch your VISA bill.
I use the paid version of Join.me and the Skype. I love join.me because it is super easy for my clients to use, they do not need download anything on there computer. Join.me also has a great free version as well.
Michael,
I was fortunate to use a video platform in 1999 hosted by the State of NC teach business classes across the state. It was like I was in a sci-fi movie 🙂
Since then I have used Skype video and often tape calls for clients. I like the share feature — both for my use, but also for a client to show me something they’re talking about.
A few other programs check out have been startmeeting.com and fuze.com. I am in the process of testing the new join.me video system.
However, this year I decided to host a variety of small events for FAs using the programs I’ve been testing. URRRR I learned that so many advisors are very far behind the times in using video. I’m glad your article mentioned equipment someone needs!
So, I’m back to teleconferences when I host advisor events. And teleconference programs are a good alternative for advisors, too.
But for my client meetings, I use Skype and am continuing to test out newer, lower priced options because I like having back ups . I did not know about Zoom, but will put it on my list.
Thank you for covering this subject.
+1 for join.me
Thanks for the recommendations. I just used Zoom.us with a client. It was excellent!!
Michael I’m so glad that you wrote this useful article about video meeting tools. Since 2013 I have been using ClickMeeting platform and I know exactly how important is to create a deep connection with out viewers.
Video conferencing will not replace face to face communication in office but it will surely take business communication to next level. There are still many things which can not be accomplished solely by video conferencing and face to face meetings is required. It will reduce the amount of face to face meeting usage to a certain extent but will not completely replace it. Tools like R-HUB desktop video conferencing servers, Polycom, Gotomeeting, gomeetnow etc. are used by various businesses for conducting video conferences.