Around March 2020 it became clear that the world was entering what has repeatedly been described as an unprecedented situation. The news constantly assured us that catastrophe was around the next corner. As one might expect, the result was pure chaos. Businesses shut down, markets fell, and everyone was at home. The fear, confusion, and uncertainty created by these actions make up the “COVID mindset”. Businesses large and small reacted based on this COVID mindset. In an attempt to avoid major losses, they cut budgets and furloughed/laid off workers. For financial advisors, it’s clear that changes being made are often based on myth instead of facts. Below are 4 myths based on the COVID mindset facing financial advisors and why they’re incorrect.
Myth 1: Clients don’t want to start with a new Advisor via Zoom
To prevent the spread of COVID-19 many places went into lockdown. Schools, offices, gyms, and many other businesses were shut down. This change forced people to work, learn, and gather remotely. It’s unlikely that your prospective and current clients won’t have internet access and some type of device to meet with you on. Those same clients are likely anxious about their finances and want to take advantage of any opportunity available to them — including working with their financial advisor via Zoom.
Another reason to offer your services via Zoom is the fact that some clients won’t feel comfortable returning to a normal in-person meeting. It may be general concern over safety, or it may be that they or someone in their home is immunocompromised. Without Zoom consultations, it’s possible that you’re going to lose those clients. It’s nearly impossible to maintain 100% retention at any given time, but virtual meetings are a good way to take action to keep your attrition rate low.
Myth 2: People won’t pay as much for virtual services
The belief that you have to leave your home in order to accomplish anything is thoroughly disproven by the COVID-19 pandemic. While the COVID mindset can lead you to think otherwise, financial services aren’t excluded from this reality. Are your clients paying you for the space your practice leases, or are they paying you for the financial advice you offer? Obviously, they’re paying for your expertise, and that doesn’t change when you switch to virtual meetings. Virtual meetings don’t mean they’re learning fewer skills org getting less expertise, so they should not cost less money.
Myth 3: Everyone is unemployed
A larger than normal number of people are unemployed, and that fact can be verified. Everyone is unemployed is an exaggeration born of the fear and uncertainty that are part of the COVID mindset. This doesn’t mean that none of your clients are impacted by the high rate of job loss, but it does mean that the number is lower than you’d expect. You’ll have some clients who want/need to drop or consider making unwise changes to their investments because they are reacting out of fear. You can work with them to make sure they stay focused and act responsibly rather than reacting out of anxiety or fear brought on by the current circumstance. Helping a client stay focused and make positive choices will certainly increase your client’s loyalty.
Not everyone is unemployed, and that means your marketing shouldn’t come to a standstill. Your marketing process should actually be ramping up so that you can take advantage of the opportunities created by COVID. People are bored so more of them are reading their emails, and they’re paying more attention to direct mail as well. They’re also spending more time online. Marketing pushes using any of these avenues are likely to reach more people. You have a chance to bring in new clients which should counteract any losses caused by COVID.
Myth 4: Once the COVID vaccine is released, the crisis will end.
COVID-19 is only our most recent crisis. It’s not the first, and it won’t be the last. And with each crisis, you will face similar myths. These myths are easy to debunk because they are based on fear and uncertainty instead of facts. This is often true during any kind of crisis. To thrive in a crisis, it is critical to maintain a positive mindset and to make decisions in a proactive manner rather than as a knee-jerk reaction. Going forward keep that knowledge in mind and use it to respond based on facts instead of conjecture.
Make sure you have a team around you to support you in your positive mindset and to help you focus your decisions in a proactive manner. The team at Advisor Wealth Mastery is here to help you do just that. Learn more and receive FREE resources to help you grow your practice and create that positive mindset here.