Staying relevant by personalizing plans around client’s values and behaviors
by Dr. Emily Koochel
Dr. Emily Koochel serves as the Manager of Financial Wellness at eMoney Advisor, where she leads innovative research and education initiatives. With a Ph.D. in Applied Family Science and an M.S. in Financial Planning, she employs a multidisciplinary approach to explore the intersection of financial technology and financial psychology, aiming to enhance the planning experience for both advisors and clients.The financial services industry is undergoing a transformative shift, with personalization becoming the driving force behind client engagement and satisfaction. Gone are the days of one-size-fits-all financial planning; clients now demand tailored services that resonate deeply with their values, life goals, and unique circumstances.
This evolution is fueled by a growing recognition that each individual’s financial journey is shaped by their personal beliefs, priorities, and aspirations. Clients seek advisors who not only understand their goals numerically but also appreciate the deeper motivations that underpin their financial decisions.
While this level of personalization was once reserved for high-net-worth clients due to the manual effort required, technology is democratizing personalized planning. Technological advancements in the efficiency of financial planning are enabling advisors to scale customized strategies across a broader client base.
As a result, personalization based on client values and behaviors is rapidly becoming the new industry standard. Financial planners who fail to embrace this paradigm shift risk losing relevance in an increasingly competitive and client-centric market.
The Power Of Values-Based Financial Planning
Values are the core beliefs and principles that shape an individual’s priorities, motivations, and decision-making processes. They reflect a person’s deepest drivers and serve as the foundation upon which life goals and aspirations are built. In the realm of financial planning, incorporating a client’s values into their personalized plan is vital for ensuring relevance and fostering long-term engagement.
eMoney’s research has consistently highlighted the significance of values-based financial planning in cultivating strong client relationships and achieving desired outcomes. When advisors take the time to understand a client’s values and align their financial strategies accordingly, the resulting plan resonates on a deeper level.1
Clients are more likely to remain engaged and committed to a financial plan that reflects their core values and beliefs. When they see their deeply held principles woven into the fabric of their financial strategy, they gain a sense of ownership and accountability, increasing the likelihood of achieving their desired outcomes. Ultimately, adopting a financial psychology (finpsych) approach that embraces values-based financial planning fosters a collaborative partnership between advisors and clients, ensuring the plan remains relevant, meaningful, and aligned with the client’s authentic self.
Using Visualization For Personalized Storytelling
Visualization is a powerful tool that makes complex financial concepts relatable, enabling advisors to narrate personalized stories around their clients’ financial plans. Visualizations simplify intricate concepts, making them more accessible and comprehensible. They also promote transparency, as clients can clearly see the underlying data and assumptions behind their financial plans.
Moreover, visualization can motivate clients to act by vividly illustrating and helping them understand the potential outcomes of their financial decisions. A vivid representation helps clients internalize the implications of their choices, encouraging them to actively engage in the planning process. Through visualization, advisors can reduce anxiety by providing a clear and organized depiction of the client’s financial situation, alleviating uncertainties and concerns.
Recent eMoney research found that clients desire a planning process that addresses their core concerns: “Am I okay? Tell me how you know? What about worst-case scenarios?” We identified five collaborative actions employing visualization strategies that advisors can leverage to showcase resilience, build engagement, and bring their clients’ plans and financial lives into focus. They are:2
- Comparing plan options and stress-testing the plan to simulate potential future events
- Analyzing the current course of action for the plan
- Demonstrating different scenarios or options and competing courses of action, showing the impact of choices on the plan
- Reviewing the assumptions and estimates used to develop the recommendations
- Reviewing and refining recommendations by analyzing potential alternative courses of action and strategies
Advisors must ensure that the actions they take accurately capture what is truly important to the client. A misalignment between the plan and the client’s core values can undermine the effectiveness of the personalized storytelling approach. Through collaboration, advisors can ensure financial plans resonate with clients’ priorities resulting in a deeper sense of understanding and engagement.
Differentiate Yourself While Engaging Your Clients
In today’s competitive financial services landscape, the ability to stand out and truly connect with clients is paramount. While most advisors present financial data, more can be done to truly tailor financial planning to resonate with clients’ unique personalities, values, and life goals. This opportunity represents a significant differentiator for those willing to embrace the power of financial psychology to create a personalized experience.
1 eMoney Beyond the Plan Research Study, June 2023, n=1,507
2 eMoney Research, “The Value of Collaborative Planning,” June 2024, financial professionals (n=654); end clients (n=1,204)
