AIs replacing cold calls, researchers find

Months after ChatGPT infiltrated copywriting and editing, a new study suggests AIs and digital assistants may soon make cold calling a thing of the past for exchange-traded fund (ETF) issuers and their financial advisory teams. Jointly conducted by Blackwater Search & Advisory and FLX Networks, the research is based on interviews with ETF issuers in the United States, Europe, Asia Pacific and Latin America.

The report, Distribution 2.0: Revolutionizing Global ETF Distribution through Technology, found numerous ETF issuers use AI and machine learning to help tailor sales strategies, techniques and communications, according to Michael O'Riordan, Blackwater founder.

"Through extensive interviews we found that many ETF issuers are developing service models that take a full, 360-degree view of the client relationship by providing products, resources, portfolio tools, content, digital and more to bring truly unmatched value to top clients," he said.

Jillian DelSignore, managing director, head of strategic growth & solutions at FLX Networks, has also seen increasing use of AI, data, digital strategies and content in selling. "The role of the salesperson for ETF issuers is critical but is fast-evolving," she said. "Sales in 2023 is less about endless travel, buying lunch and hawking product sheets. It's more about being a consultant, embracing technology, recognizing client pain points, and pulling in resources to help advisers solve problems and build their practice."

From MLS to MDS?

Given the current reliance on data-driven decisioning and tech-enabled forecasting, is it possible that a designated merchant level salesperson may soon have a more hybrid title? DelSignore mentioned that a survey respondent proposed renaming salespeople as "resource directors." DelSignore also citing the following research findings:

• Data reliance: Data usage enables ETF issuers to segment sales calls and drive critical, senior-level decisions about hybrids, internals, and for digital marketing.

• Upskilling workers: While buying lunch has not been completely phased out, technology skills such as data management, virtual engagement, portfolio construction, product analysis and diagnostic tools are part of salespeople's daily work with advisers.

• Digital distribution: Cold calling and screening can be replicated, even enhanced, through a digital strategy, and firms are reallocating budgets to fuel this shift to digital.

• Augmented human sellers: Digital tools make salespeople more productive and focused by improving lead quality and client engagement.

• Content publishing: ChatGPT and other digital assistants are helping create blogs, websites and social media, which are critical for success in ETF distribution. This content provides perspective on markets and helps advisers add value to client relationships.

• Social media: Having a social media presence is integral for spotlighting expertise, building brand and connecting advisers with clients.

Content is king

"If one thing is clear, it's that the role of the salesperson has continued to evolve," Blackwater and FLX researchers wrote. "Today's successful salesperson is one who is a consultant, can quickly determine their client's pain point and equally communicate his or her firm to an audience."

Referencing the distribution leader who proposed the "resources director" title for professional sellers, researchers defined a salesperson's primary responsibilities as managing important relationships, understanding investor needs, identifying opportunities and bringing in a variety of specialists to support their conversations.

"As advisors trim the number of asset managers they work with, this level of engagement and support has become table stakes," they wrote, stating that content is still king. This doesn't mean only fact sheets and presentations, they added, but also includes "research, market commentary, practice management, everything that supports the broader conversation with an advisor."

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