Business planning, client communications and marketing are the three areas financial advice practices are focusing their 2017 innovation efforts according to new research released by Zurich Financial Services Australia (Zurich).
The ‘Designing the Future’ research, conducted by The Beddoes Institute on behalf of Zurich, also examined strengths and vulnerabilities across leading advice practices by analysing detailed behaviour within 35 individual ‘Business Success Tools’.
Drawing on a sample of more than 13,000 ratings from 184 practices, the 2017 Innovation Agenda Whitepaper set out to identify innovation priorities for the financial advice sector through 2017.
It revealed that advice businesses were focusing innovation efforts on four main priority areas; Business Planning, Marketing Planning, Client Communications and Referral Partner relationships.
Secondary areas of focus included Social Media strategies, Client Segmentation, Workflow Management and Financial Management tracking.
Zurich’s Head of Distribution, Kristine Brooks, said that advice practices were seeking to innovate in those areas where they considered themselves most vulnerable.
“At a high level, practices assessed themselves as being vulnerable in the areas of marketing, strategy and business management, so it’s pleasing that they have made the closing of these gaps a priority.
“Practices identified similar vulnerabilities when we did the same research 12 months earlier, and responded by investing in a range of ‘business success tools’ include optimising their websites for mobile devices, client surveys and direct marketing planning.
“This year, client communication and strengthening referral partner relationships, are high on the list of innovation priorities, reflective the increasing challenges in attracting new customers and the corresponding importance of retaining existing ones,” said Ms Brooks.
Report Co-Author and Director of The Beddoes Institute, Dr Adam Tucker, believes the increase in business investment revealed in the research is a lead indicator of renewed health and optimism within the advice sector.
“Practices are showing increased energy as they invest in the development of business tools to help drive future growth and adapt to the evolving landscape,” he said.
Dr Tucker noted that the Human Resources Business Pillar – despite being identified by many practices as an area of vulnerability – was not seen as an innovation priority.
“HR innovation around areas such as reward and recognition and training and development, definitely lags behind the extent to which it is needed.
“We have often said that small business needs to approach HR in the same structured way that big businesses do if they are to attract and retain the best talent.
“The quality of talent within a business impacts everything from their ability to deliver a consistent, differentiated brand proposition to the fundamentals of running of a successful, efficient business.”
A full copy of the research is available from Zurich.
