Topic 6

Question 1

ECRM

Answer 1

1. E-business: the integration of activities within the framework of all existing and future commercial activities
2. Channel management: the greatest impact or economy anytime, anywhere and anyone
3. Relationships: real commercial relationships built on service excellence, value, and convenience
4. Management of the total enterprise: total back-office/front-office process integration

Question 2

Robo-advisors

Answer 2

The automated, algorithm-based financial advisors that have recently been introduced into the financial industry.

Provide a unique opportunity for clients to log on and obtain their own financial needs analysis, product solutions, and investment portfolio management

Question 3

What should financial planners focus on?

Answer 3

The importance of managing customer relationships and helping them to determine what their investment objectives should be to ensure more personalized advice for their broader financial plans, which robo-advisors cannot do

Question 4

Implications of virtual reality on financial planning practices

Answer 4

1. Reduce cost of business
2. Increase service levels
3. Reduce entry barriers
4. Extend global reach
5. Challenge brands
6. Rise in customer power
7. Enhanced employee satisfaction
8. Ease of communication
9. Creating a professional online presence

Question 5

Reduce cost of business

Answer 5

Practices will reduce their expenses significantly if they use this virtual environment with clients who may be far away through the use of tools such as MS Teams, Zoom, and Skype and signatures on Docusign, ZohoSign, or QuickSign.

Staffing costs also reduced because there is less of a need for staff to work from an office space

Question 6

Increase service levels

Answer 6

Clients are more used to 24-hour-a-day availability, which nrrfd to be built into the operational efficiency of your practice

Internet bots have been incorporated on websites in order to facilitate the 24-hour availability with automated responses based on the questions asked.

This relieves the volume of queries and manages client expectations if the query remains unresolved

Question 7

Reduce entry barriers

Answer 7

You can reach a wider audience with a well-thought-through customer value proposition advertised on a website like LinkedIn.

Advertising your business is also much cheaper through these channels

Question 8

Extend global reach

Answer 8

You can stretch your market as far as you want to, whereas previously, you were constrained to your immediate working and living areas, and you have access to a larger customer base since, in reality, more and more people are purchasing products based on research and access to financial planners via the internet

Question 9

Challenge brands

Answer 9

Even though there are some established brands clients are more comfortable with, the virtual economy levels the playing field quite significantly between all businesses.

Question 10

Rise in customer power

Answer 10

The customer is no longer at the mercy of a single institution or operating in total ignorance.

The marketplace customers can search out the best deals, often using the information available on the internet

Question 11

Enhanced employee satisfaction

Answer 11

The administration team can work more efficiently as there is less risk for human error by using the CRM’s online tracking system.

They can have a more flexible work environment by working remotely

Question 12

Ease of communication

Answer 12

The use of technology for communication in the virtual business world has changed drastically, which is easier and more efficient for the practice and the customer

Question 13

Creating a professional online presence

Answer 13

Building an online brand is a key element of a practice

A comprehensive, ongoing online brand strategy requires the integration and management of a website, regular blogs and email campaigns, and social media.

Question 14

Important aspects of social media marketing

Answer 14

1. Improve brand awareness
2. Engage with your customers
3. Improve brand loyalty
4. Marketplace awareness
5. Increase traffic

Question 15

Improve brand awareness

Answer 15

Social media is an easy-to-use and profitable digital marketing platform that is used to increase your brand visibility and ensuring that the business stays relevant

Question 16

Engage with your customers

Answer 16

This is a good platform to engage and interact with customers and convey your brand message to a wider audience

Question 17

Improve brand loyalty

Answer 17

A social media presence makes it easier for your customers to find you and connect with you, which increases customer retention and customer loyalty

Question 18

Marketplace awareness

Answer 18

Helps the business understand the needs and wants of customers by observing the activity of the various posts, which helps business provide topical information and remain relevant

Question 19

Increase traffic

Answer 19

Sharing content on social media, it gives your customers a reason to click through your website.

Further content can be shared by your customers to gain a wider audience and attract new customers

Question 20

Advantages of social media

Answer 20

1. Social media facilitates open discussion and communication and also a place where questions can be raised
2. Threads of discussion are often formed so that ideas and topics can be discussed
3. Social media can target a wider audience
4. Social media can be used to implement certain marketing campaigns or client-acquisition strategies
5. Social media expands the level of exposure

Question 21

Disadvantages of social media

Answer 21

1. There is no opportunity for the reader to question the context of comments, and therefore can be taken out of context
2. Sites often fall prey to hackers and spammers, which poses a security risk, as many users share too much personal information
3. A driver of social media is one’s reputation
4. Spending too much time communicating or updating profiled in social media can lead to lost productivity and pose a distraction
5. There is a different response time expectation for each different social media platform as there are negative repercussions for lack of response

Question 22

Types of social media

Answer 22

1. Social networking sites
2. Social review sites
3. Image sharing sites
4. Video hosting sites

Question 23

Social networking sites

Answer 23

Facebook, Twitter, and LinkedIn

These platforms enable the business to connect with customers and brands

These platforms can reach a specific target audience through advertisements and attract like-minded customers or potential business partners through groups and followers

Question 24

Social review sites

Answer 24

One of the first things we all do when finding out information about a company is to Google it and go straight to the reviews

Reviews tell the business and customers about the customer experience from the customer’s own point of view

The business can use it as a way to identify what is working and discover areas that may need to improve

Question 25

Image sharing sites

Answer 25

Visual content like images and illustrations are often more impactful and eye-catching than words

Social media platforms like Instagram are designed to amplify the power of image sharing

This can be used to run campaigns encouraging customers to engage and share the content

Question 26

Video hosting sites

Answer 26

YouTube is the most used platform businesses can use to put together content and share it to build communities and get their content out there