3 Things Advisors Can Learn From Steve Jobs

Here are three things advisors can learn from what Steve Jobs did to grow Apple from a two-man team in a garage to a multibillion dollar technology giant:

1.  No Two Customers Are the Same
   Jobs understood that the world was moving toward individuality as consumers continued to grow savvier about options. No two consumers were going to want, or even have, the same experience with Apple’s technology, so he made his products as customizable as possible.
   This same concept can apply to how advisors work with their clients. Yes, most of your clients want
   
   an advisor that’s going to help them build a strong portfolio so they can comfortably live out their dreams, but their dreams are not the same by any means, and when you think about it, you are in the business of making dreams come true. That’s a lot of responsibility, but if you look at each of your clients’ experiences with you as individually as possible, just as Jobs saw each of Apple’s users uniquely, you can create an experience that demonstrates your commitment to their individual financial goals and concerns. An advisor’s job is already very hands on, so this doesn’t mean handing out your personal cell number to every client for 24/7 access to you, and it even goes beyond sending out occasional birthday cards. Spend less time with these types of communications and more time on those that help educate clients and potential clients on things that are important to them and which will help them meet their goals. Check in with them when you know they are worried about the market or when they’re approaching their child’s first college semester. Being proactive about their unique concerns and individual circumstances will help advisors make each client feel like their issues are also important to you.
    
2. Create a Community
   Just four years ago, over 20% of Americans owned an Apple product according to research from the Solutions Research Group. Today, that number is expected to be even higher with the variety of products Apple has introduced, including the iPad which reached one million units sold twice as fast as the iPhone, but this isn’t a popularity contest. It is proof that Steve Jobs understood (there’s that intuition again) that people, though they want individuality, also want a sense of community.

   Jobs capitalized on this through marketing that spoke not to any one demographic, but to the Apple community; it tapped into what every Apple customer had in common and brought them together. For advisors, building a community among your clients and prospective clients is an important tool to managing their satisfaction. Advisors have the opportunity, as Jobs did, to speak to a group that may be very different, yet have something in common: they’re working with you and they want to obtain their financial goals.

   Sending regular communications such as newsletters that share expert insights, news and tips are just the beginning of creating a community. According to AdvisorWebsites.com research, 58% of advisors surveyed felt email marketing was the most effective way to communicate with clients, tied with face-to-face events. Spend more time around email campaigns and individual outreach in ways your clients will respond to.  If you don’t have one already, create social media pages for your community so that your clients can communicate and help each other with their financial questions. Highlight success stories and share them to inspire others to make good decisions with their financial plans.

3.  Make Decision-Making Simple
   Jobs hugely influenced the Apple design process so that its products had few buttons (as many know, he hated them) and limiting the products that were made available to consumers. He tapped into his intuition to design products that would appeal to a wide net of consumers rather than throw out many different products for them to choose from. In this way, he made decisions easier for people rather than overwhelming them to the point of decision paralysis.
   Advisors can take a lesson from Jobs in simplifying their communication with prospects and clients. At Financial Finesse, we aim to follow this principal and write all of our education content without too much financial jargon so the average person will understand and relate to it. Advisors should speak to the average investor in their communications as well. Try to simplify complicated concepts and help clients narrow down their investment options through analysis that looks at more than just risk tolerance. Ask questions that relate to their personalities, how they like to learn, how much interest they have in the market, and so on. Make questions like these part of your early assessment before you begin digging into the details so you are more on target with what you present them. The fact is, helping people create a financial plan involves a lot of psychology. If you can tap into how people think and present them information in a way that fits their style and knowledge level, you will save more time and effort and have more satisfied clients.

The reach Steve Jobs has had on our society can’t be outlined in one article. There are many lessons we all can learn from him in understanding our clients and how to provide them with something that exceeds their expectations. But we can begin by learning from his intuition and his passion for making a difference. Now more than ever before, advisors have the opportunity to change investors’ perceptions and how they manage their finances. The question is, will you choose to be a Steve Jobs?

Additional resources for better practice on communicating with and understanding your clients:

Following are some additional resources you can use to help you with the principles in this article.

• Behavioral Finance in Action
• Top Tips for Effective Client Newsletters