In an apparent nod to digital-centric customer behaviors, Merrill Lynch Wealth Management is no longer making cold calls a part of its training program for incoming brokers.

Why should we care?
The cold call, once a powerful tool for financial advisers to build networks, has found itself being overtaken by digital communications methods and referrals. The cold call was in decline after do-not-call registries emerged in the early 2000s, but it appears the pandemic was the final nail in the coffin for them as protocol breaches – including instances where individuals on do-not-call lists were contacted – resulted in a temporary wind-down of the method by the company last year. Now, it appears that the ban is permanent. In an age where most consumers have smartphones with caller ID, response rates – which the company says are around 2% – make most of these calls not worth the effort. By contrast, Merrill’s data on referrals suggests prospects reply more often when contacted through this method, with 40% of outreach to these prospects resulting in responses. The company is also using LinkedIn, perhaps one of the closest digital analogues to the cold call, to reach potential new clients. “There is also an opportunity to be much more modern in terms of the way we are reaching out to prospective clients,” Merrill President Andy Sieg said. The company also has revised the pitch framework for prospects, focusing on the client’s bigger financial picture rather than individual product offerings.