The shocker came from the CPA group, which registered only a 19% above-average ROI rating, the lowest of any group. Since they also were free to choose, and since they also chose primarily iPhones and Android phones, why the discrepancy? We have two theories: One is that the CPAs are simply tougher critics; they demand more from their purchases. The other (and perhaps more likely) explanation is that CPAs are not making full use of their phones' capabilities.
The big question mark for 2013 is the Windows 8 phone. Currently, Windows phones have only a 2% share overall, but our survey closed just prior to the release of Windows 8 phones. We think Windows 8 could change the fortunes of Windows phones in the advisor space for three reasons.
* We expect Windows phones to offer security that meets the demands of enterprises, which could mean that they become a viable alternative to BlackBerry devices.
* The early prototypes we have seen are very well designed from both a hardware and software point of view.
* Perhaps most important: Windows 8 phones fit nicely into the new Windows 8 ecosystem. Since the vast majority of advisors spend their time on Windows PCs and in Windows apps, the ability to seamlessly move from PC to tablet to phone may appeal to advisors.
We'll have to wait and see how this scenario plays out, but the potential is certainly there for a Windows phone to finally win over financial advisors.
TABLET GROWTH
What about tablets? Half of all advisors now own a tablet - and of those, 81% own an iPad, 15% own an Android and 7% own a Windows tablet. The iPad was strongest among independent RIAs and weakest among insurance agent advisors. Android tablets were strongest among dually registered advisors and lowest among bank-affiliated advisors. Only 8% of advisors said they plan to buy a Windows 8 tablet over the next 12 months but, as of the survey's close, advisors had not yet seen a Windows 8 tablet, so those numbers might rise.
CPA advisors are twice as likely as the average advisor to purchase a Windows 8 tablet soon. We think that's because CPAs spend so much time in MS Excel, and Windows 8 tablets work natively with MS Excel.
Advisors gave tablets lower ROI scores across the board when compared with their phones. There could be a number of reasons for this. One is cost: In the case of smartphones, you're buying a phone anyway and, with a contract, the incremental cost of the premium phone may be perceived as acceptable. In the case of a tablet, you are not only buying another device, but in many cases you are buying another cellular data plan - so the investment itself is high.
We also think most advisors want to use their devices to interact with Microsoft Office apps, custodial apps or the industry-specific apps they use daily. Yet there are no Microsoft Office apps available for the iPad yet. Workarounds are available, but they are far from seamless. This may lower the ROI in the eyes of some. Industry-specific apps, meanwhile, have only been on the market for a relatively short time, and some offer only a limited set of functionality. As these apps get better, perceived ROI should rise.
As with smartphones, we will be watching closely in the months ahead to see if Windows 8 tablets can win over a larger share of the financial services market. We don't see Windows 8 overtaking the iPad any time soon, but we do believe the number of advisors owning Windows tablets could increase significantly by next year. In particular, the ability to work with native Office applications, store them to the Microsoft cloud and then access them later, from other devices, looks very appealing.
PERCEIVED ROI
Another interesting result was the varying perceptions of ROI with respect to CRM among the various user groups. When we asked independent RIAs, 36% said that they enjoyed an above-average return on their CRM investment, and another 51% said they got an average ROI. Only 16% complained of below-average results. The numbers for dually registered reps and independents affiliated with a B-D varied slightly, but not by much.
On the other hand, when we looked at CPAs, just 9% of respondents said that they received above-average ROI, 63% said they received average ROI, and a full 28% said that they received below-average ROI.
