Last week, we referenced two significant truths:
The transfer of $72 trillion in assets from Baby Boomers to succeeding generations and the reality of individuals only retaining about 20% of what they hear. The moment’s importance demands that Financial Advisors (“FAs”) rethink their communication strategy by focusing on the “what” and the “how.” In this post, we examine perfecting the “what.”
1. Clarity is Key: Simplifying Complex Concepts
Research supports that individuals are 50% more likely to understand complicated data when provided with clear terminology. FAs should aim to break down financial jargon and distill key concepts into digestible insights. Plain language and straightforward examples will facilitate a client’s grasp of the essential information without feeling overwhelmed.
2. Data-driven Insights: Evidence Speaks Volumes
Incorporating data is essential, as research suggests that 67% of people attribute decision-making success to understanding solid data. FAs should leverage data-driven insights to provide context and relevance to their clients’ financial situations. Trends, forecasts, and actionable statistics allow clients to make informed decisions based on empirical evidence.
3. Engagement through Visual Storytelling: Making Data Relatable
Visual elements play a crucial role in information retention. Studies indicate that individuals retain 65% of visual information compared to only 10% of text. FAs should employ infographics, animated charts, or case studies to make financial data more digestible.
Financial Advisors can improve their chances of engaging clients and deepening relationships by incorporating clarity, data-driven insights, and visual storytelling into their communication. But, as we said last week, that is only half the solution. Next time, we will focus on the “how.”