Building a Quality Base
The right tactics will help you stand out.
Edmond Walters
When it comes to building and maintaining a profitable client base, you need to apply an important equation:
Quality Prospecting Tactics + Quality Advisor = Quality Clients
The two sides of the equation must balance out if you want to achieve the desired result.
Getting this equation right seems simple, but it can be difficult when put into practice. Quality clients are clients who have a higher net worth, are better educated, more tech savvy and generally more profitable than other clients. If you are a good advisor, but you are struggling to build your client base, you will find it difficult to attract these clients. If your advisory services are weak, but you are an expert on prospecting for new clients, you might temporarily attract some of them but you will have a hard time retaining them.
In my two decades of experience, I have observed all of the above. Here are some examples to get you moving in the right direction when building a high-quality client base.
| NO MATTER WHAT YOUR PASSION, THERE ARE OTHERS WHO SHARE IT. |
Prospect passionately
Work in an area that interests you. If you enjoy boating, target boat owners so there is a common bond of genuine interest. Ron Carson, a well-known advisor, calls this “passion prospecting.”
No matter what your passion, there are others who share it. If your passion appeals to a particular industry, it will help if you become an expert in that industry. Your clients will love the fact that you can carry on an interesting conversation with them and do a great job of managing their assets.
The equation to apply here: Market Passion + Market Education = Market Edge
Get involved
In The Tipping Point, Malcolm Gladwell writes about influencers and connectors. By getting involved in outside organizations that you care about, he says, you will discover a whole new referral base. Think carefully about the type of organization you want to join; it should mean something to you on a personal level.
Part of your brand will reflect your commitment to community service or charity—and that’s attractive to your prospects. Many of your prospects are also involved in community service activities. Serving on the board of a community or nonprofit organization is a great place to start.
The equation: Quality Organizations + Quality Time = Quality Networks
The benefits of high tech
Using the latest technology shows prospective clients that you are an advisor who stays on top of trends. Some advisors are using large plasma screens to show prospects real-time planning techniques and what-if scenarios based on basic information that they gathered prior to the meeting. Others are adopting web-based systems to allow their clients access to their personal financial information anywhere, anytime.
Part of your brand should reflect the fact that you are committed to servicing and supporting your client base with cutting-edge technology that makes their financial lives easier.
The equation: Quality Technology + Quality Information = Quality Retention and Differentiation.
Develop your own Top-10 list
Terry Sjodin, author of New Sales Speak: The 9 Biggest Presentation Mistakes and How to Avoid Them, suggests taking the time to sit down and write 10 reasons why you are a great advisor.
Each reason should be short, to the point and honest. Acknowledging your strong points will help you, exaggerating your strong points will not. After you have written down your Top 10, commit them to memory. Then query your clients to find out what attracted them to you the most. Ask prospects who did not become your clients what you failed to show them. This will help you build a well-thought out pitch. You should be able to quickly and clearly list the benefits of working with you and your firm at a moment’s notice.
The equation: Quality Preparation + Quality Reflection = Quality Sales and Marketing
Quality generates quality
Putting your best effort and thought into everything you do—from prospecting to delivering financial advice—is critical in your ability to build and maintain a quality, profitable client base. If you do not have much time, focus on one or two tactics you believe will work best for you and make sure that your effort reflects the highest standards of quality.
Edmond Walters is the chairman and CEO of eMoney Advisor, a provider of web-based, holistic, wealth-planning solutions. For more information, visit www.emoneyadvisor.com.
