High net worth

The way we buy products and services has changed exponentially in recent years. Instead of wandering down the high street, or flicking through the Yellow Pages, we turn to the internet.

And IFAs are taking note, with many more advisers recognising that a website is a key part of their marketing strategy ' especially now that consumers want access to services round the clock. According to Assureweb, back in May 2000, 60% of IFAs did not have a website, but one year on this has fallen to 40%.

Nicola Mitchell, sales and marketing director at Assureweb, says: 'It is absolutely essential for IFAs to have a website. To ensure their clients stay loyal they need to be contactable 24-hours a day.'

This is especially important now that many direct providers, such as Egg and Virgin, have a strong online presence. If you cannot service your clients when they want you to, someone else will.

Think first

But before you start developing the site it is important to determine what you actually want the site to achieve, according to Stephen Wynne-Jones, head of life and health protection at Exchange FS. 'IFAs need to decide why they want a website first. Do they just want to let people know they are there, do they want to offer a transactional facility, or do they want to service existing clients?' he says.

'This will determine how much you spend. Sites can be built for very little cost, but if you want any transactional facilities it will cost more,' adds Wynne-Jones.

However, a basic site, or business card site as they are often called, which offers little more information than your name and contact details will be of small value.

Wynne-Jones says: 'We do not see the online business card as being of much benefit as it provides little and does not engage with the customer.'

It is the sites that service existing clients where the potential lies, he adds. 'When you talk to IFAs about websites there is a heavy emphasis on chasing new customers. But they could get more benefit by targeting existing clients.'

Mitchell agrees. 'Most IFAs want to lead generate with their site, but they actually work best as a tool for looking after existing clients. Any leads that are generated should just be seen as a bonus.'

Selling yourself

However, opinion is mixed on this matter. Richard Davies, e-business and media manager at Swiss Life, says: 'The most important reason for protection IFAs to have a website is so new customers can find them. Members of the public are increasingly embracing the internet when it comes to conducting financial research, and this includes finding an IFA. If you are not in the virtual high street, people will not find you.'

While developing your online strategy may appear an uphill struggle, technology providers are ready and waiting to help you market your services over the internet. Companies such as Exchange FS and Assureweb, for example, offer template services that help IFAs build their own sites with the minimum of fuss and cost.

'Using our templates, IFAs can create their site in as little as 20 minutes subject to compliance that is,' adds Mitchell. Solicitors, able to vouch that the site is compliant, may also be available if the IFA is not part of a network.'

As this approach has already been used by many IFAs, one may think a template-based site might lack individuality. But sites can be tailored to suit the IFA's needs and this may prove a cost-effective solution when you consider the cost of employing a website designer to do this for you.

Wynne-Jones explains: 'By using a template, IFAs can include their own brand and logos, select the colour, style and opt for different navigational options.'

Content can also be varied. 'We offer generic content that can be included in the site, or if they prefer, IFAs can write their own,' he adds.

The general rule is the more interesting and interactive the site, the more successful it will be. Sites need to be 'sticky' ' that is you want users to not only stay in your site, but return time and again.

Educational content such as an outline of the different policies available and glossary of terms can be useful, both of which can make life easier for IFAs when they come to meet clients. A regularly updated news service can also make a site more useful. Such services are often made available on template-based sites. Assureweb, for example, offers newswire from a link up with news agency, Reuters.

'Sites ultimately need to be confidence building and educational. IFAs need to be able to demonstrate they can provide a reliable and professional service. The education that the website provides can improve the client's confidence and make them more likely to use that IFA.

Some insurers are also doing their bit, to help IFAs increase the stickiness of their site. Liverpool Victoria, for example, offers a facility called 'e-serv IFA' to advisers which enables their clients to access information about the Permanent protection range via their websites. Rod Macdonald, IFA marketing manager for the company, explains: 'Clients can access the full range of term and critical illness quotes on their IFA's website and they can even go further and actually purchase life cover online using our interactive underwriting facility.'

This, says Macdonald, lets IFAs add an interactive dimension to their site. 'The typical IFA website just provides information. But life cover is a commodity product, clients know the life cover they might have with their mortgage lender is not competitive and are happy to buy online without advice.'

Although IFAs do receive a reduced commission if they sell products via this distribution channel, considerable time is saved as they do not have any face-to-face dealings with that client.

However, once the site is up and running it is important to update it regularly, otherwise users are unlikely to return. This is one benefit template-based sites have over sites built and designed by web agencies, says Wynne-Jones, as they usually have a facility to help IFAs maintain their sites. He says: 'An administrative service allows users to improve the site, change the content and news. However, when you have paid a design agency to set up your site, maintenance can be difficult.'

Promoting your site

Once your website is up and running it is essential to promote it. Recent estimates suggest that there are between 1.6 billion and 2.1 billion documents on the net, with around seven million more being added every day. And so you cannot just rely on your potential clients to stumble upon it. As Wynne-Jones says: 'Putting up a website does not guarantee that people will flock to it.'

As a result, it is essential to register with search engines. Again, this is another obstacle that IFA technologists can help you overcome.

Assureweb, for example, offers a search optimisation service. For an additional premium the company will ensure that your web address is sent to all the major search engines.

Alternatively, IFAs can be added to its own IFA directory at www.ifawindows.co.uk, or they can contact IFA Promotion to be added to its 'Find an IFA' service.

Both these services enable users to find a local IFA and connect with their website, simply by entering their postcode.

The success of 'Find an IFA' illustrates how many consumers are using the internet as a means of tracking down an IFA. According to IFAP, in 1999, 8% of its 92,000 requests were online and in 2000, 32% of its 132,000 requests were online. However, usage has increased even further this year ' the organisation received a massive 125,000 requests in the first six months alone, 70% of which were online.

With potential also coming from existing clients it is important to let them know about the site.

'Mention the website in your other marketing communications to make sure clients know it exists,' says Mitchell.

For starters, it is essential your web address is included on all stationary such as letterheads and business cards, not forgetting any advertisements you run. It is also worth sending your clients a letter detailing how the site can benefit them.

Some of the template-based website services will also offer marketing support to IFAs. Assureweb, for example, offers post cards that can be sent to clients, car stickers and advertising templates. 'This helps IFAs let their clients know they are contactable 24-hours a day,' says Mitchell.

Only a handful of IFAs that have developed online trading mechanisms can genuinely say the internet has revolutionised their business. But many more stand to see the internet enhance their business as another marketing, communication and possibly, distribution channel ' and with so much help on hand, it should not be too hard to achieve.