How to choose a wealth manager

This was the title of the lead article in this week's Sunday Times Raconteur section:

In 2020 you might expect some reference to researching using the net. But there is none. So we will pick up where this article left off. 

The article references 'the damaging closure of high-profile Woodford Investment Management' so we will just add another three 'high-profile' names that have featured in the press recently to start a list of our own: St James's Place, Hargreaves Lansdown and Lindsell Train; we will then go on to examine the online presences of all the firms quoted in that article, after all, won't every investor looking for a new home for their portfolio be searching online as a first step - even if only to find contact details?

And right next to those contact details, in every single search? 

That's right, the firm's Google score - in lights - and a link to their own clients' opinions of them. If you were searching for someone to manage your life savings, even if you have had the firm strongly recommended by a friend or colleague, or you know an existing client who thinks they are the bee's knees, wouldn't you want to read what their other clients have to say? We would. So let's take a look, shall we?

Woodford

St James's Place (head office)

St James's Place (a typical office):

Hargreaves Lansdown

Linsell Train

Chase de Vere

Mattioli Woods

Brooks Macdonald

Quilter Cheviot

Barnett Waddingham

Brewin Dolphin

Last line of the article? 'It pays to do your homework'. All we can say is 'good luck' researching these businesses online, you'll get plenty on past performance (and we know what everyone, including the regulators, says about that) but next to nothing from their hundreds of thousands of existing clients about service levels. Even those that score well - see Brewin Dolphin above, where none of their three reviews appear to have been written by a 'real' client and Barnet Waddingham with a score of 4.9 from seven reviews, ditto (five being worthless ratings, four of which have been written by points-seeking local guides) have made no effort to harness the power of online reviews for the benefit of potential clients.

The article contained this survey:

We're going out on a limb here, but surely those who value 'personal attention' and 'quality and reputation' might also place a high value on a business that went to the trouble to invite and display customer opinions like this:

And this...

And this...

Surely the most cynical investment manager is going to acknowledge that at least some of their potential clients might be reassured by seeing that in excess of 100 of their existing clients were prepared to put 'pen to paper' to voice their approval of their service?

So why don't they?

We did the obvious thing. We asked some. They responded candidly (having been reassured their responses would be published anonymously). Here they are...

• "We expect the responses - and ratings - to correlate with clients' subjective experience of the performance of their portfolios."
• "We expect that our unhappy investors will be much more likely to post - therefore unfairly skewing our image."
• "Many of our clients are simply not financially savvy enough to make a reasoned judgment."
• "Our clients will object to being asked to publicly express an opinion of our services."

And, more than once...

• "None of our competitors have engaged with Google reviews."

We mined further down. Why not? The answer, when pressed, was invariably fear. Fear of the unknown, fear of losing control. So here's our answer to that 'fear'.

Fear that clients will focus on performance

Performance is one - important - aspect of any investment management service. But remember that clients do not need the business's permission to post a review on Google. One surefire way to ensure a negative online impression over the long term is to leave the field clear for unhappy clients. Remember that the business can always respond to the review, and use that response to educate their potential clients as well as address the contents of the individual review. 

Fear that only those with an axe to grind will post reviews

This has been proven to be a 'false fear'; there is no evidence at all, across a range of high-value services where the business has proactively engaged. And that is the key: ignore consumers and the most disgruntle will post reviews, engage and happy loyal clients will way outnumber them.

Fear that clients don't understand financial services well enough to post an accurate review

This is where a service like HelpHound comes in. Our clients invariably invite their clients to write their review to them in the first place, this gives HelpHound the opportunity to moderate the review before publication. What is moderation? It is the act of checking a review for factual inaccuracies before it is published. Reviewers welcome it as much as our client businesses - after all, most reasonable people don't actively want to post an inaccurate or misleading review, they actually want to help their fellows make the right decision.

Fear that clients will resent being asked to write a publicly visible review

If anyone thinks that financial services are so sensitive as to be exempt from reviews then we would ask them to consider this client of ours, a Harley Street feminine health and wellbeing clinic.

There are perfectly reasonable grounds for this objection, after all, finance is a private matter. Our answer, based on extensive experience with similarly sensitive businesses, is that a - perhaps surprising - number of people are prepared, willing even, to share their experience for the benefit of their fellows. Remember that no one is forced to write a review, all that it takes is careful wording of the invitation (such experience we have in spades) making it quite clear to the recipient that their review is designed to help others and is entirely voluntary. 

No other financial services business has engaged with reviews

We hope we have made a strong case for reviews in the context of investment management and financial services. We are confident that the first financial services businesses that engage will see immediate benefits, in much the same way that estate agents (hardly the most popular businesses!) have done - here is the monthly report Google sends every business (we recommend you seek out whoever in your business receives it, the data it contains is invaluable):

Aside from your business's Google score which anyone can easily find by simply googling your business, it contains vital information on...

• how many people found your business in Google searches in the previous month (2,653 in this client's case)
• how many calls you received directly through Google (73)
• how many visits to your website came as a direct result of finding you in a Google search (90)

...and, perhaps most important of all, any uplift in these numbers (important because the uplift, in this case, was as a direct result of joining HelpHound).

Further reading...

• Thousands could lose their life savings - why reviews matter (this article was written well before the Woodford storm broke, but would have been just as relevant in that context)
• Estate agents were - understandably - wary about adopting a proactive stance with reviews; see what five of them say here
• Unfair, fake, misleading or just plain inaccurate reviews do no-one any good, and they can seriously impact a business. Here's the happy ending for a case involving a client of ours.

Thousands could lose their life savings - why reviews matter

Estimates vary, but the Telegraph is saying that up to 20,000 investors are affected, many with their life savings at risk.

But why? With this a search away...

And these...

The point? That a number of people - the exact number will never be known - were saved from investing with this business, not by the City regulator, the FCA, but by Google - in fact, by just sixteen people writing a review on Google (one is positive!).


Duty of Care

Businesses surely have a duty of care to their investors, and especially businesses in the world of finance. And for reputable firms we would sincerely suggest that that duty of care includes ensuring that they engage with reviews, if only out of pure self-interest.

Just how many people would have avoided using Beaufort Securities if responsible and reliable competitors had looked good in search. Like this...

The most reviewed investment advisers in London - probably. But, from the look of it, they only engaged when they were the subject of a damning 1* review first. We suggest that many FS businesses can learn from Holder & Combes, and engage before they have to.

But just how many investment advisers or wealth managers have paid attention to reviews? The answer is: pitiably few. See this random search on 'investment advisers' in London...

  One business in seven has just one review - astonishing in 2018

Helpful for potential investors? We don't think so.

What about the industry leaders? 

Fidelity...
 

Aberdeen...

M&G...

 
Brewin Dolphin...

Suprised? So were we. So we began by asking ourselves the obvious question - and soon the answer became apparent...

Why so few reviews?

The answer is summed up with one word: 'fear'. Fear - by the business - of inviting negative reviews. After all, as the label on the tin says: 'the price of investments can go down as well as up' and what investment adviser is going to expose themselves to reviews that say 'mine went down'? 
 
Our answer to the investment community: all of you. Because of the aforementioned 'duty of care', but also for the following reason...

 This Google review is damaging enough in itself - the fact that it is served by Google as the first review seen by anyone referencing this business (as 'most helpful' and 'most recent') makes it doubly so. In addition the business has failed to respond and it has been voted 'Helpful' by two readers in the last two months (we estimate that 'Helpful' votes represent less than one percent of those that have read a Google review - so this review's reach is likely to stretch into the hundreds).

• if you don't engage you risk leaving the field clear for your minority of unhappy clients, and they will find their way to Google eventually, and then you will find your reputation unfairly tarnished

Managing the 'fear'

That's simple: just take estate agency; estate agents - especially lettings agents - are hardly at the top of the list of 'most admired' occupations, so we don't think those in financial services have anything to worry about if we can produce results for them like these we have produced for good estate agents...

And focusing on the positives...

   

Back to Holder & Combes - for anyone doubting that having great reviews drives new business, read the first line

Great review management is like great investment management: it produces great results. Not just great reviews and great scores on Google (which it will), but it will actively encourage people to use your business, and since September last year, you will be able to measure that like this...

   

   This is a screenshot of a client's Google My Business report - if you don't recognise it as being just like the one your business receives every month you will need to find out who in your office is receiving it (if you draw a blank, just ring Karen Hutchings here and she will walk you through the procedure for having it readdressed) 

 
So: over to you in the world of investment management; recognise that your potential clients/investors will welcome reviews from your existing clients, and that reviews can provide that crucial differentiation between the kind of business with which they will be happy to entrust their life savings and those that perhaps they should be wary of.




 

Ongoing review management - it is SO important

In your first weeks of operating Dialogue your business has gone from no reviews on its own website and no (or very few) reviews on Google to 'lots' on your own site and 'some' on Google. What happens now?

To get the right answer to that question it is important to understand how consumers use reviews. There has now been plenty of academic research in that field and all of it points to the following:

1. The pure number of reviews can either boost or dilute the impression you create online. Put simply: a business with 100 great reviews looks bigger and more successful than a business with 50 (and much more so than one with none). The message here is loud and clear: never take your foot off the throttle.
2. Recent reviews matter: If consumers see that the last review was written months ago that runs the risk pf creating the impression that it was written by the business's most recent customer. Then some will draw the conclusion that you are not a great force in your marketplace.
3. The content of reviews is important: it is used by Google to create the three 'rich snippets' shown in the Knowledge Panel (the box that pops up to the right in search containing all your business details - see illustrations below), so encouraging customers to make content detailed and relevant is a good idea. Simply explain how important this is to your business and your customers will respond with great content.

More detail:

Pure numbers

Remember that four reviews a month will add up to fifty by this time next year (and how many of your competitors have anything like that number)? Perseverance is the key here.

Recent reviews

If you build the fact that you will be inviting reviews into all your dealings with your customers they will be upset if you don't invite them, rather than the other way around! That's the way to keep your reviews fresh, as well as the numbers steadily growing.

Rich snippets*

Rich snippets are one of the most important aspects of the Google Knowledge Panel - there for all to see, every time you feature in search results. Negative rich snippets can do untold harm. Here's what one client's looked like when they joined at the end of last year:

And here's what they look like now (less than three months later):

And for anyone wondering about this business: they are a large well-established lettings agency with a very positive and proactive attitude to tenant relations. But with thousands of tenants it was all too easy for the disgruntled minority to dominate what was being said online, so the impression being given was heavily skewed towards that tiny (but vocal) minority's opinions. Dialogue has redressed the balance for them (and will continue to do so).

And one last thing...

There's much more to our role, but clients refer time-and-again to the 'discipline' element, by which they mean that Dialogue ensures that they are always up-to-date as far as reviews are concerned; that they are consistent in requesting (and therefore getting) great reviews, month in, month out.

*Rich snippets: Google software analyses the content of all your reviews, looking for the three predominating themes, it then chooses a phrase from a review that relates to those themes and displays all three as illustrated above.