Nudge, nudge, wink, wink…
Finding the right nudge for your clients
Advisers are using insights from behavioral economics and social psychology to steer people’s decisions in a direction that should benefit them
Excerpt from article by Alain Samson and Prasad Ramani originally published in Investment News
Client perceptions of a financial adviser’s service are ultimately determined by how effectively it delivers to their personal financial objectives or long-term lifestyle goals. As financial advisers’ role evolves more and more into that of a financial life-coach, advisers need to build strong client relationships and foster trust.
To add value to their services, some advisers have begun to “behavioralize” their work by helping clients make better financial decisions. One approach to achieve this objective is to educate clients about investment errors and pitfalls in an attempt to de-bias their thinking and choices.
Another, complementary way that has gained in popularity in recent years involves nudges. This approach utilizes […]
High End, High Touch And High Tech: The New Buzz In Wealth Management Marketing
Excerpt from article by Liz Fritz Chief Marketing Officer at F2 Strategy Consulting originally published in Forbes
Engage with the new Gen C (Generation Connected).
Engagement is particularly important in the digital age. It’s not just millennials that are plugged in. You’ll be hard-pressed to find a client who doesn’t have a smartphone. Technology may seem like a challenge to incorporate into your business now, but it’s a tool that can work to your advantage. Social media, a website and other online platforms can not only help you reach your clients — they can also show you what people think of your brand. No one should approach their company brand in a “set it and forget it” way. Brands need constant engagement and updates to reflect their clients’ needs.
High tech can be high […]
The Cost-Effective Power Of Psychological Nudges
Excerpt from article by Michael Blanding originally published in Forbes
Most governments aren’t subtle when they want citizens to do something. The United States spends close to $1 billion annually on advertising—trying to convince citizens to do everything from taking flu prevention shots to reporting unattended suitcases at the airport. But now agencies are finding that subtle “nudges” can motivate behavior much better than ads, fines, or deadlines.
Nudges, or small changes to the context in which decisions are made, are the subject of a new analysis by Harvard Business School Associate Professor John Beshears and colleagues, recently published in the journal Psychological Science. The paper, Should Governments Invest More in Nudges? answers its own question with a resounding “Yes.”
“We suspected that nudges on an impact-per-cost basis would be superior to traditional approaches […]