The SMSF industry must position itself for the development of two discrete markets to capitalise on and sustain future business, the head of a data research house said last week.
“One is the potential market, which I’d encourage everyone to start to think about the pipeline of opportunity everyone is facing,” CoreData principal Andrew Inwood told the 2014 No More Practice Live Event in Sydney on Friday.
“The other is the satisfaction of the clients that you have within your group and making sure that you’re well on top of that and understand how that’s behaving because I think the next move in SMSFs is homogenisation, where people start to shift provider where they’re not getting satisfied.
“You see that happen in every industry as they mature, so we’ll start to see that homogenous piece start to happen and the data is already showing us that.”
Inwood said following discussions with economists, it was expected the SMSF market would run relatively strongly until 2018.
“But start having the conversations about potential downside shocks in the five-year window,” he said.
Australian SMSF Members Association chairman Grant Abbott said technology was a key enabler for professionals to capitalise on the SMSF opportunity.
“Social media is a way of engaging now and I think that’s the new way,” Abbott said.
“It’s important for everyone in this room to have a dynamic website and videos because that’s where people are going to look and they want that engagement, so it’s incumbent to get your marketing strategy right.
“Also, find the right client that you want to work with and focus on strategies.”
