The 10X Financial Advisor
Chapter 1
Evaluation
A strong foundation is essential for constructing a magnificent building. Similarly, the Evaluation phase serves as the cornerstone for your entire business. If not handled correctly, it can jeopardize the stability of your entire business. Returning to our mathematical analogy, the first step in our formula is to determine the Quantum Leap Success Number (QLSN). This is achieved by summing up the Advisor Success Number (ASN), Client Interaction Number (CIN), and Scale Ready Number (SRN). We will delve into each of these components shortly and, later in this chapter, explore the significance of each element in depth.
The ASN gauges a financial advisor’s proficiency across the entire spectrum of client engagement, from initial contact to ongoing relationship management. A high ASN is a strong indicator of success and can even predict superstardom in the field. Conversely, a low ASN can be a valuable starting point for identifying and addressing weaknesses, providing a catalyst for improvement.
The CIN is a quantifiable measure reflecting the time you allocate to activities directly contributing to your revenue generation. This includes the crucial tasks of forging new client relationships and strengthening existing ones. Essentially, it encompasses all prospect and client-facing activities, capturing the essence of your engagement with clients. The CIN serves as a vital metric, emphasizing the importance of interpersonal interactions in the financial advisory field and highlighting the time spent in direct communication and relationship-building efforts with clients and potential clients. This measure is pivotal in understanding and enhancing the effectiveness of your client engagement strategies.
The SRN is a comprehensive metric designed to assess your preparedness to expand your financial advisory practice, aiming for substantial and lasting growth. This number is not just a mere figure; it encapsulates various factors essential for transforming your practice into a flourishing business. It considers elements such as your current business structure, operational efficiency, client acquisition and retention strategies, resource allocation, and ability to adapt to market changes. The SRN also evaluates your technological integration, staff competency, and the robustness of your financial planning and advisory services. In essence, it’s a holistic measure of your practice’s readiness to grow in size, capabilities, and service quality. By examining these aspects, the SRN provides a clear picture of where you stand in your journey towards scaling your business and identifies areas that require enhancement to ensure sustainable and significant growth.
When you put it all together, your QLSN is the sum of your ASN (your strengths and weaknesses throughout the total life cycle of client engagement) plus CIN (your focus on prospect and client interaction and the ability to eliminate or delegate everything else) plus SRN (your readiness to scale your business).
Before delving into the intricacies of the three components that make up the QLSN, it’s vital to understand the significance of this analytical exercise. The core purpose of this process is to identify and address your weaknesses. Recognizing areas where you’re lacking or tasks you dislike is the first step toward substantial improvement. Once these weaknesses are identified, you can strategically employ various tools and approaches to mitigate them. This might include leveraging technology for efficiency, implementing systematic processes for smoother operations, reallocating resources more effectively, or utilizing external services for marketing and lead generation.
Understanding and acknowledging your shortcomings isn’t just a procedural step; it’s a critical part of your professional development. It’s often challenging to admit to ourselves where we fall short, but this admission is key to progress. By acknowledging these areas, you open the door to focus on your strengths and passions within your business. When you offload tasks that are outside your skillset or preference, you not only streamline your business operations but also enhance your personal job satisfaction.
The eventual outcome of this approach is twofold. First, it allows your business to thrive as you concentrate on what you do best and enjoy most while managing weaknesses through other means. Second, it significantly boosts your personal fulfillment, knowing that your business is growing and aligning more closely with your strengths and interests. This strategic approach to business management is a surefire way to propel your business toward exponential growth and elevate your satisfaction in your professional life.
Advisor Success Number Unveiled
Previously, we discussed the ASN, a comprehensive metric that assesses a financial advisor’s proficiency and areas for improvement across the entire spectrum of client engagement. This process isn’t monolithic; it consists of five distinct phases, each demanding a unique set of skills and talents for mastery. It is quite uncommon for an individual to excel in all five areas, presenting a significant opportunity for growth and specialization.
Before delving into the specifics of each phase, it’s important to recognize the value of understanding and developing skills for each stage. Mastery in these areas can significantly enhance your overall effectiveness as an advisor and lead to a more robust and satisfying client relationship.
Now, let’s take a closer look at each of the five phases of the client engagement life cycle. These phases encompass the entire journey of client interaction, from initial contact through to the ongoing nurturing of the relationship. Each stage has unique challenges and opportunities, and excelling in these areas is key to becoming a successful financial advisor.
Phase One: Finding New Clients (Find)
The cornerstone of success in financial advisory is consistently attracting new clients. The most common reason for a financial advisor’s stagnation or failure is the absence of a steady influx of new opportunities. It’s essential for advisors to have a systematic, repeatable process for generating new client leads. Equally important is the skill of discerning which prospects to avoid. Spending time with a non-ideal prospect is a misallocation of your most valuable asset—time.
Phase Two: Understanding Client Needs (Feel)
A financial advisor must possess the ability to delve deep into a prospect’s real issues. Often, prospects share their goals and objectives but omit their underlying concerns—the real drivers of their decisions. Identifying these pain points is crucial; without them, a prospect is unlikely to act, regardless of the quality of your presentation. The role of the financial advisor here is akin to an amateur psychiatrist tasked with uncovering these hidden issues.
Phase Three: Providing Solutions (Fill)
After identifying a prospect’s pain point, you must assess whether you can address their needs with your products or services. A prospect without a pain point or one whose pain you cannot alleviate is not an ideal candidate. This phase involves evaluating your capabilities in relation to the client’s specific requirements.
Phase Four: Demonstrating Persistence (Fortitude)
If a prospect has a solvable pain point, they become a prime candidate. In this phase, it’s vital to exhibit unwavering determination in your pursuit. Consistent and persistent follow-up is key, as the prospect might not be immediately ready to commit. Successful financial advisors maintain regular contact, reminding prospects of their value proposition until they’re ready to become clients. This might involve weeks, months, or even years of nurturing the relationship.
Phase Five: Building Lasting Relationships (Friend)
The final phase is guided by the Golden Rule: treat others as you would like to be treated. Your client service model should aim for exceptional care, often leading to clients becoming part of your social circle. This approach has dual benefits. Firstly, it fosters lifelong client relationships, which is crucial since investors often change advisors every seven years. Secondly, it generates a continuous stream of new referrals. While clients may not always actively recommend their financial advisor, they are much more likely to recommend someone they consider a friend. This friendship leads to an organic, powerful referral network.
Mastering these phases significantly boosts the potential for lasting success and growth in the financial advisory field. It’s common to find advisors who excel in certain stages but struggle in others. For instance, an advisor who thrives in the art of prospecting might find client servicing less appealing. Similarly, an advisor who excels in client interaction and adeptly designs plans and products might falter in generating new deal flow.
In my experience coaching financial advisors, I’ve encountered several who demonstrate remarkable proficiency in the initial stages: identifying potential clients (phase one), uncovering their pain points (phase two), and providing tailored solutions (phase three). They also excel in the final stage, offering exceptional service and building strong, friendly relationships with clients (phase five). However, their lack of prowess in the fourth phase, which involves relentless pursuit and follow-up, often results in significant missed opportunities. This shortfall is not just a minor gap; it can be the difference between an average and a highly successful business. The ability to persistently follow up with prospects, maintaining engagement without becoming overbearing, is vital. It requires a delicate balance of tenacity and tact—constantly reminding prospects of your value proposition while respecting their decision-making process and timeline.
Advisors who master this fourth phase unlock a vital component of successful client acquisition. It’s about nurturing potential leads over time, being patient yet persistent, and understanding that the conversion from prospect to client may not happen overnight. The skill lies in keeping the communication channels open, providing regular updates and insights, and subtly reinforcing how your services can address their needs.
Each phase of the client engagement life cycle is a cog in the larger machinery of a successful financial advisory practice. Excelling in some while neglecting others can lead to an imbalanced approach, potentially impeding overall success. For advisors, the goal should be to develop a well-rounded skill set or design resources that allow them to navigate each stage effectively, thereby maximizing their potential to attract, retain, and satisfactorily serve their clients.
Achieving the status of a 10x Advisor requires a comprehensive approach to client engagement, ensuring no aspect of the five-phase lifecycle is neglected. Identifying your strengths and passions within this framework opens up remarkable opportunities to address your weaker areas. Leveraging technology, implementing efficient systems, reallocating resources effectively, and utilizing external marketing and lead generation are key strategies in this process. By doing so, you can create a well-rounded, robust practice that excels in every phase of client engagement, propelling you towards the coveted 10x advisor status.
The Done With You Model
Our coaching approach for financial advisors in the ASN process is a comprehensive and personalized method, going far beyond the scope of standard surveys. We aim to delve deeply into understanding and refining an advisor’s capabilities across the entire life cycle of client engagement. Here’s how we assist advisors through this detailed process:
Initial Assessment
We begin with an in-depth discussion, focusing on understanding your current practices and skills in client engagement. This conversation is more than just a questionnaire; it’s a dynamic dialogue designed to explore your unique experiences and perspectives.
Identifying Strengths and Weaknesses
Our approach involves identifying your strengths and weaknesses across different stages of client engagement. By examining your past interactions and outcomes with clients, we can pinpoint areas where you excel and those requiring improvement.
Customized Questions and Scenarios
We use tailored questions and hypothetical scenarios to assess your response strategies and problem-solving skills in various client engagement situations. This approach helps in understanding your decision-making process and client-handling techniques.
Feedback and Analysis
We provide detailed feedback based on your responses, highlighting key insights and identifying patterns that may not be immediately apparent. This analysis helps in recognizing potential growth areas and refining your approach to client interaction.
By engaging in this comprehensive ASN process, advisors gain a clearer understanding of their proficiency in each phase of client engagement, allowing for targeted improvements and ultimately leading to a more successful and fulfilling advisory practice.
ASN Case Study
Several years ago, I had an individual working for me; we will call him John Bilkinson. John was 30 years in the business, very talented, a hard worker, and had a magnetic personality. He was the kind of guy that would light up the room when he walked in. John was a master of phases one through four, and those skills led to a successful career. He would prospect relentlessly and was very good at it. He was exceptional in client interaction and figuring out his prospect’s pain points. He mastered the art and science of designing ways to solve the prospect’s pain points. John was perhaps the most relentless pursuer of a qualified hot prospect that I have ever seen.
John was so tenacious that he would chase his prospect with calls, mail, email, drop-by visits, and more until the prospect either bought or told him to stop (usually with expletives). However, even though John was a success, he never broke out into the category of 10x. John had a constant churn. He brought in clients faster than anyone else in the organization, but unfortunately, he lost them more quickly than anyone else in the company. If John were as talented at client servicing and creating friendships with the people he served as he was at all other phases of client engagement, he would have been a superstar. Find your holes, and therein lies the opportunity.
Client Interaction Number Unveiled
The CIN is a key metric in the financial advisory field, focusing on the time spent on activities directly linked to revenue generation. This includes not just any activities but specifically those centered on building and strengthening relationships with prospects and clients. It encompasses all the efforts you put into client- and prospect-facing interactions.
Reflect on your typical day. What proportion do you dedicate to interacting with prospects or clients? This is an essential question, as my observations in the industry reveal that many financial advisors spend an inordinate amount of time on tasks that, while seemingly important, don’t directly contribute to relationship-building or revenue generation. The result? They end up feeling drained and frustrated, often without the desired outcomes.
In reality, the financial advisory profession rewards two fundamental activities: creating new relationships and deepening existing ones. This is where the true value lies, and it’s what clients are willing to pay for. Every other task, no matter how urgent it may seem, usually falls into a category of lesser financial significance.
Understanding this dynamic is crucial. While administrative and operational tasks are necessary for the smooth running of your practice, they often represent a form of gross underemployment compared to the potential earnings from direct client interactions. Therefore, the challenge is optimizing your schedule and delegating or automating the less profitable tasks as much as possible. This strategic approach allows you to focus more on client-facing activities, which are the most lucrative and rewarding aspects of being a financial advisor.
By measuring and increasing your CIN, you ensure that your time is invested in the most profitable aspects of your practice. This not only leads to greater financial success but also to more fulfilling and meaningful professional relationships. As you continue to refine this balance, you’ll find that your efforts align more closely with the core value proposition of your role as a financial advisor.
Imagine that you pick up your phone to make a doctor appointment, and on the other end of the line is your doctor greeting you with a “Hello.” Then, when you arrive at her office, she promptly hands you all the paperwork and insurance forms. She proceeds to photocopy your insurance card and then walks you back to the exam room, where she begins the exam by taking your weight, temperature, and blood pressure and documenting your reason for today’s visit. After receiving professional advice and treatment, your doctor walks you back to the front counter, takes your payment, and schedules your follow-up appointment.
That is just crazy, right? I can’t imagine that this doctor will stay in business. The reality is that doctors are the ultimate delegators. They have someone else perform everything mentioned above except providing professional advice and treatment. By outsourcing everything else, they can run several exam rooms simultaneously, seeing multitudes more patients and, in turn, making more money. A common misconception among many financial advisors is the belief that their primary role is to manage money, create financial plans, handle paperwork, and similar tasks. However, it’s necessary to understand that these activities, while important, do not fully leverage the unique skills that financial advisors bring to the table. These tasks, though foundational to the role, are often not the ones that drive the highest value in the client-advisor relationship.
The essence of being a successful financial advisor goes beyond just the technical aspects of financial management. The true value lies in building trust and loyalty with clients. These interpersonal elements differentiate a good financial advisor from a great one. Managing money and developing financial plans are expected as basic competencies; however, the ability to forge strong, trusting relationships is what truly maximizes the value of the client-advisor dynamic.
Building trust is a nuanced process, one that involves much more than just financial acumen. It requires excellent communication skills, empathy, understanding of client needs, and the ability to provide tailored advice. This trust becomes the bedrock of the relationship, especially during challenging times. Without it, clients may hesitate to follow advice, particularly in volatile or uncertain market conditions.
Moreover, the role of a financial advisor is also to guide clients through the emotional aspects of financial decision-making, which often involves navigating complex situations and providing reassurance and clarity. These are skills that are not typically associated with more technical tasks like paperwork or data analysis but are crucial for maintaining long-term client relationships.
Therefore, financial advisors should aim to strike a balance between the technical and relational aspects of their role. Delegating or automating routine tasks can free up more time for client interaction, allowing advisors to focus on building and maintaining these critical relationships. Understanding and embracing this broader scope of the role is key to becoming a truly effective and successful financial advisor.
Rydex conducted an insightful study that sheds light on the income levels of financial advisors in relation to how they allocate their time, particularly focusing on client or prospect-facing activities. The findings of this study are quite revealing and have significant implications for financial advisors. It was discovered that advisors who dedicated over 60% of their time to establishing and nurturing client relationships earned an astonishing 8.42 times more than those who spent 30% or less of their day on such activities. This disparity is not just notable; it’s monumental.
To emphasize the importance of this finding, it’s worth reiterating: Advisors engaging more with clients and prospects earned 8.42 times more than their counterparts who invested less time in these interactions. This statistic is a powerful testament to the value of prioritizing client-facing activities in the financial advisory business. It clearly demonstrates that the most lucrative aspect of being a financial advisor lies in the personal, direct engagement with clients and prospects rather than in back-office or administrative tasks.
Given this compelling evidence, it becomes imperative for financial advisors to reassess how they allocate their time. Investing in technology, systems, and people and even outsourcing certain functions can be transformative. By streamlining processes and delegating tasks that don’t directly contribute to relationship-building and revenue generation, advisors can free up more time to focus on what truly drives their income—building and deepening client relationships.
This strategic reallocation of resources and efforts is not just about working smarter rather than harder; it’s about recognizing and capitalizing on the most profitable aspects of the role. Embracing this approach can lead to not only a significant increase in income but also to more satisfying and productive client interactions. The message is clear: To maximize earnings and success in the financial advisory field, the focus must be on direct, meaningful engagement with clients and prospects.
It’s important to rigorously track and meticulously record the time you dedicate to engaging with prospects and clients, making a habit of charting this activity on a weekly basis. If you find that such interactions make up less than 60% of your total work week, it’s a strong indication that you’re not fully capitalizing on your income potential. There’s a lesson to be learned from the medical profession in terms of scaling and achieving significant, lasting growth. Observe how doctors delegate routine tasks to focus on patient care, applying this principle to your financial advisory practice.
Treating your practice like a business involves recognizing and prioritizing tasks that directly contribute to your growth. Engaging in activities that could be outsourced or completed at a lower wage—work valued at $10, $20, or even $30 an hour—is not the best use of your skills and potential. Your unique value as a financial advisor lies in building and strengthening client relationships, a task that commands a higher remuneration and has a direct impact on your business’s success.
By focusing on these high-value activities, you pave the way for a significant expansion in your business. This approach isn’t about merely working hard; it’s about working strategically and leveraging your expertise in the areas that matter most. Implement systems, utilize technology, hire support staff, or outsource non-core tasks to free up more time for client-facing activities. This will improve your revenue and enhance the satisfaction and fulfillment you derive from your work. In essence, by concentrating on what you excel at—creating and deepening relationships—you set the stage for exponential growth in your financial advisory practice.
The Done With You Model
Our coaching for financial advisors in the CIN process is designed to be in-depth and interactive, far surpassing the scope of standard surveys. The goal is to provide a nuanced and detailed understanding of how you’re allocating your time and whether it’s optimized for maximum success and profitability. Here’s how we assist advisors through this comprehensive process:
Detailed Time Analysis
We start with a thorough analysis of how you currently allocate your time. This involves breaking down your typical workday or week into specific activities, including client interactions, administrative tasks, marketing efforts, and other business-related duties.
Interactive Discussions and Scenario-Based Questions
Through one-on-one discussions and scenario-based questions, we assess the nature and quality of your client interactions. This helps us understand not just the quantity but the quality and impact of your time spent with clients.
Identifying Productive vs.
Non-Productive Activities
Our approach focuses on distinguishing between productive activities that directly contribute to building and deepening client relationships and non-productive tasks that could be delegated or streamlined.
Customized Feedback and Strategy Development
Based on our assessment, we provide personalized feedback and develop strategies to optimize your time management. This may include suggestions for process improvements, delegation strategies, or technology solutions that can automate routine tasks.
Setting Goals and Metrics
We help you set realistic goals for improving your CIN, including establishing clear metrics for success. This could involve aiming for a specific percentage of your time to be devoted to direct client engagement.
Implementation and Support
We guide you through implementing the recommended changes and provide support to ensure these new practices are integrated effectively into your daily routine.
Ongoing Monitoring and Adjustment
We continuously monitor your progress and make adjustments as necessary. This could involve regular check-ins to assess how the changes are impacting your CIN and overall business success.
Focus on Profitability
Our ultimate goal is to ensure that your time is spent in a way that maximizes both the success of your client relationships and the profitability of your practice.
Through this detailed CIN process, advisors gain a deeper understanding of their time allocation, leading to more effective management of their schedule, enhanced client interactions, and a more profitable and efficient practice.
CIN Case Study
Early in my career as a trainer for financial advisors, I identified a prevalent error among those who were average or underperforming, and I termed this phenomenon Delusional Activity Syndrome (DAS). Through my observations, I found that in about 85% of cases where a financial advisor’s practice wasn’t meeting expectations, the root cause could be traced back to DAS. Now, before you jump to conclusions, let me clarify: DAS isn’t some new kind of illness, but in many ways, it’s more detrimental than a physical ailment. It’s not something that can be remedied with a simple course of antibiotics. Overcoming DAS requires a blend of education and a deep-seated willingness to defy your most ingrained instincts.
Delusional Activity Syndrome manifests when a financial advisor is tirelessly engaged in the wrong activities. To outsiders, these advisors often appear extremely busy. In many instances, they’ve even convinced themselves that they’re devoting every ounce of their effort to their careers, and they mistakenly attribute their lack of success to bad luck. However, it’s important to remember that financial advisors are highly compensated primarily for two things: creating and deepening relationships. Almost everything else can be considered an inefficient use of their time.
Consider, for example, a financial advisor who generates $500,000 annually. If they work a standard 2,000-hour year, their effective hourly rate is $250. A million-dollar producer, on the other hand, earns $500 per hour. By engaging in tasks that are valued less than their average hourly worth, advisors are essentially leaving money on the table. You might think these figures are far from your current reality, but the mindset of a 10x advisor begins with thinking and acting like one. Without adopting this mindset, achieving that level of success is unattainable.
During my training days, I would often observe the hustle and bustle of the bullpen. Everyone seemed engrossed in their work, putting in long hours, but not everyone achieved the same outcomes. The advisors who dedicated most of their time to phone calls or meetings with clients or prospects consistently met their targets. In contrast, those who spent their days on other tasks they deemed important—organizing, planning, trading stocks, etc.—often fell short. These activities, while they might seem critical, did not directly contribute to relationship building or revenue generation.
If you suspect that you might be suffering from DAS, I urge you to seek professional guidance immediately. Your career may very well depend on it. The key is to recognize the trap of busy work and refocus your efforts on the activities that truly matter—those that build and deepen client relationships and, in turn, drive your success.
Scale Ready Number Unveiled
The SRN is an indispensable metric for assessing whether your financial advisory practice is primed for significant and sustainable expansion. It takes into account various factors for transforming your practice into a thriving enterprise. In my extensive experience in the financial services industry, a common irony I’ve noticed is that many financial advisors excel in guiding clients toward their financial goals but struggle with effectively managing their own business. Over my 25 years of managing, training, and mentoring thousands of financial advisors, I’ve observed that while these professionals are adept at creating financial plans for others, they often fall short in strategizing for their own business’s success.
The journey from being a good financial advisor to joining the ranks of the industry’s elite often stumbles on a lack of clear, defined business processes and a deficiency in fundamental business skills. Many advisors have not mastered the art of running their practice as a business, missing essential principles of business management necessary for scaling and achieving long-term growth.
To gear up your practice for scaling, it’s essential to focus on several key areas. These include streamlining operational systems, developing effective client acquisition and retention strategies, and managing the financial aspects of your business wisely. Also crucial are marketing and branding efforts, integrating technology to improve efficiency and service, and investing in staff training and development. Ensuring regulatory compliance, managing risks effectively, and staying abreast of industry innovations are also vital components.
While mastering all these elements isn’t a strict prerequisite to becoming a 10x Advisor, those who have achieved this distinction typically excel in most, if not all, of these areas. By focusing on these aspects, you can evaluate your readiness to scale and identify opportunities for improvement, setting your practice on a path toward joining the elite ranks of 10x advisors.
To assist you in preparing your business for scaling, we will embark on a thorough exploration of 21 key elements that are instrumental in achieving both success and significant growth. This comprehensive analysis will equip you with a deeper understanding of what it takes to expand your business effectively and sustainably.
1. Do you stand for something? In other words, do you have a clearly defined mission statement and value proposition?
2. Do you know the demographics and population of your area? Have you done a competitive analysis of the market in which you compete?
3. Do you have a niche target market?
4. Do you consider yourself a specialist?
5. Do you have the proper tools and technology in place?
6. Do you have a sales and marketing funnel?
7. Do you spend enough money on marketing, and do you calculate ROI on your marketing spending?
8. Do you do any social media or internet-based marketing?
9. Do you do center of influence marketing?
10. Do you have a multifaceted or multi-pronged marketing plan?
11. Do you survey your client base quarterly using Net Promoter Score?
12. Do you have a client onboarding process?
13. Do you have a client servicing model?
14. Do you have a process for getting referrals?
15. Do you have a process for getting multi-generational client retention?
16. Do you do regular client appreciation events?
17. Do you send out a monthly newsletter or blog?
18. Do you have a full-time assistant?
19. Do you have an institutionalized process for managing your client’s investments?
20. Do you have a process for firing clients?
21. Does your business have a personality?
Question 1: Do You Stand for Something?
It’s crucial to ask yourself what your business represents. Your mission statement and value proposition are not just formalities; they are the core of your business identity and essential for connecting with your target audience.
When I first pondered this subject, I started by conducting a simple search for a financial advisor in my local area. The results were disheartening. Among the top 10 Google search results, not a single website had a clear mission statement or value proposition. They were all so bland and non-descript, resembling more a fluffy, shapeless mass of cotton candy than solid, distinctive business propositions. This is a fundamental error in marketing. As per Marketing 101 principles, your messaging should be so tailored and specific that it resonates strongly with your intended audience, effectively weeding out those who are not a fit. Your aim should be to position yourself as the ultimate professional in your area of expertise, especially if you wish to dominate a particular niche.
Conversely, a mission statement that attempts to cater to everyone generally ends up attracting no one because it fails to establish a sense of expertise or differentiation. In our fast-paced, attention-deficient world, where you have barely six seconds to capture someone’s interest, a generic mission statement is a missed opportunity to engage a potential client.
In stark contrast, I reviewed the websites of some of the most iconic and successful brands, such as Intel, Uber, FedEx, and Campbell’s Soup. Each of these brands follows a similar pattern in their online presence. They begin with a bold, impactful statement, followed by a brief but compelling explanation of the value they offer to customers. For instance, Uber’s straightforward slogan, “Get there. Your day belongs to you,” is supported by key benefits: the easiest way around, available anytime and anywhere, and offering a range from low-cost to luxury options. In just a few words, Uber effectively communicates its core services and benefits, a practical approach in our era of limited attention spans.
Understanding the difference between a mission statement and a value proposition is fundamental. Your mission statement should encapsulate what your company stands for and its primary activities, while your value proposition should highlight why a client would choose your services over others, emphasizing clear, measurable benefits. For example, Procter and Gamble’s mission is to improve everyday life, a promise they support by detailing how their products make daily routines easier.
These examples illustrate how successful brands communicate their missions and the benefits they offer to consumers. They clearly state what they do and how it benefits you, the consumer. So, it begs the question: Why are so few financial advisors adopting this successful and proven approach?
Learning from the practices of large corporations can be pivotal in scaling and fostering substantial, sustainable growth in your financial advisory practice. Treat your practice like a business and ensure your offerings to the world are clearly articulated, highlighting the unique aspects of your service and the value it provides to your clients. Avoid falling into the trap of being just another indistinct entity in the vast sea of financial advisors. Stand out with clarity and purpose, and avoid being lost in the crowd like unremarkable cotton candy.
The Done With You Model
At our firm, we are committed to empowering financial advisors who join our team with the tools and knowledge necessary to craft compelling mission statements and value propositions. We understand that these elements are vital in defining and differentiating an advisor’s practice in a competitive market. To achieve this, we offer a comprehensive blend of self-learning and personalized coaching.
Our Learning Management System (LMS) is an integral part of this process. This self-learning platform is carefully designed to guide advisors through the intricacies of creating effective mission statements and value propositions. The LMS contains a wealth of resources, including interactive modules, video tutorials, and case studies. These materials are curated to provide advisors with a deep understanding of the principles of branding and marketing specifically tailored to the financial advisory industry. Advisors can explore these resources at their own pace, allowing for flexibility and self-directed learning.
In addition to the LMS, we offer one-on-one coaching and mentorship. This personalized approach ensures that advisors receive individualized guidance and support. Our experienced coaches work closely with each advisor, helping them to apply the concepts learned from the LMS to their unique practice. This collaboration often involves brainstorming sessions, review and refinement of mission statement and value proposition drafts, and practical advice on implementing these elements.
Our mentorship program further complements this learning experience. Mentors who are seasoned professionals in the financial advisory field provide real-world insights and share their experiences crafting and utilizing effective mission statements and value propositions. This mentorship offers a valuable perspective on how these tools work in practice and how they can be leveraged to attract and retain clients.
Through this combination of self-directed learning via our LMS and the personalized support of coaching and mentorship, we ensure that every advisor who joins us is well-equipped to develop a strong, clear identity for their practice. This comprehensive approach enhances their marketing and branding skills and contributes significantly to their overall professional development and success in the financial advisory field.
Question 2: Do You Know the Demographics and Competitive Landscape of Your Area?
Understanding the demographics and competitive landscape of your market is not just beneficial, it’s essential for the growth and success of your financial advisory practice. Think back to your early education. Initially, we learned basic arithmetic, like addition and subtraction, and only after mastering these fundamentals did we progress to more complex concepts like multiplication and division and eventually advanced topics like algebra, geometry, and calculus.
This educational journey highlights the importance of a sequential learning process. We didn’t jump straight into calculus in our early years; doing so would have been overwhelming and counterproductive. Instead, we built a strong foundation with simpler concepts before tackling more advanced subjects. This principle applies equally to understanding your market’s demographics and competitive environment. These are the foundational elements that need thorough comprehension before you can scale your business and truly resonate with the community you serve.
Consider the approach of a company like Procter & Gamble. Before launching a new product, they conduct extensive research to understand their target market. They have a clear picture of their potential customer’s profile, including age, wealth, region, and gender. This insight removes potential barriers to a successful product launch and ensures their marketing is precisely targeted. P&G then analyzes their competition for that customer’s attention and spending. Understanding their customers and their competition allows them to plan an effective product launch and a highly targeted marketing campaign. They use a focused, rifle approach rather than a broad, shotgun method, ensuring their marketing efforts and dollars are directed precisely where they will have the most impact.
This kind of targeted marketing is more efficient and profitable than casting a wide net over an audience that may or may not be interested in their product. With this in mind, it’s imperative to ask yourself several critical questions: Do you know the demographics of the people in your service area? Can you clearly define your ideal client? How many potential clients fitting this profile exist in your area? What strategies will you employ to reach these ideal clients? What are the specific needs or motivations of these clients? Who is your competition for these clients? What are your competitors’ strengths and weaknesses? What marketing strategies do your competitors use? Are there unmet needs in the market that your competition is overlooking? How will you differentiate your services from your competitors?
Before you invest in marketing, you must be able to answer these questions.
Emulating the strategies of successful businesses like Fortune 500 companies can guide your financial advisory practice toward significant growth. Knowing your target client inside and out allows for strategic, effective marketing, ensuring that your resources are not wasted on ineffective, scattergun tactics. Marketing should never rely on luck; it should be a well-researched, strategic effort designed to scale your business effectively.
The Done With You Model
In our coaching program, we specialize in assisting financial advisors to precisely define the demographics of their geographic area. This targeted approach enables them to identify and focus on the most profitable client segments, enhancing their business success and efficiency.
Our process begins with a comprehensive assessment of the geographic area where the advisor operates. We provide detailed guidance on how to collect and analyze demographic data relevant to their market. This includes examining factors such as age distribution, income levels, employment patterns, family structures, and investment behaviors prevalent in the area. By understanding these elements, advisors can better identify the client profiles that are most likely to benefit from their services.
We employ a variety of tools and techniques to facilitate this analysis. Our coaches instruct advisors on using demographic research tools, local economic reports, and financial trend analyses. These resources are instrumental in painting a clear picture of the potential client base within a specific geographic region.
In our one-on-one coaching sessions, we delve deeper into this data, helping advisors interpret the information and translate it into actionable insights. These personalized sessions focus on identifying the most lucrative client segments and understanding their unique financial needs and preferences. Our experienced coaches provide practical advice on tailoring services and communication strategies to appeal to these specific groups.
Moreover, we emphasize the importance of aligning the advisor’s expertise and service offerings with the needs of the identified demographics. This alignment ensures that the advisor is not only targeting the most profitable clients but also offering services that are highly relevant and valuable to these clients.
We also guide advisors on continuously monitoring and adapting to demographic shifts in their area. This proactive approach ensures that advisors remain attuned to changes in their market, allowwing them to adjust their strategies to maintain relevance and profitability.
By the end of our coaching program, financial advisors are equipped with a nuanced understanding of the demographics of their geographic area. This knowledge empowers them to pinpoint the most profitable clients, tailor their marketing and service offerings more effectively, and ultimately, build a more successful and sustainable practice. Our goal is to transform advisors into savvy business professionals who are adept at leveraging demographic insights to enhance their practice’s growth and profitability.
Question 3: Do You Have a Niche Target Market?
The principle of not trying to be everything to everyone is vital in business. When you attempt to cater to all, you often resonate with none. Most successful enterprises, including many Fortune 500 companies, understand the power of focusing on a niche market. Even businesses with a wide array of products tend to target each product at a specific, well-defined segment. Niche marketing means directing all marketing efforts toward a small, specific segment of the population, with the aim of being a dominant player in a smaller market rather than a minor one in a larger field.
Consider the strategic shift made by Levi’s in 2014. Facing declining sales in their 501 Jeans line, Levi’s opted to narrow their target market to a very specific group. They chose to focus on 20 to 24-year-old white males and females who were college-educated and had incomes ranging from $30,000 to $45,000. This demographic was characterized as outgoing, ambitious, part of the upper-class Generation Y, and avid attendees of live music events. Their musical preferences included rock, hip-hop, and rap. They were readers of GQ, Men’s Fitness, and US Weekly and viewers of popular TV shows like Breaking Bad, Mad Men, The Voice, Two Broke Girls, and Modern Family. These individuals were also heavily engaged in social media, interacting frequently with friends and family online, and preferred shopping at urban retailers like Macy’s, Nordstrom, and Bloomingdales.
This level of specificity in defining a target market is commendable and something every financial advisor should strive to emulate. Among the many financial advisors I have consulted over the years, only a select few have managed to define their niche as precisely as Levi’s did.
There are several steps in effectively designing your market. First, identify your ideal clients. Determine the group you want to serve. These individuals should have a need that matches your expertise. If you can align this with your personal passions, such as hobbies or charitable interests, even better. This alignment allows advisors to build their business around areas they are genuinely passionate about, like golf or wine tasting.
Next, define your client profile. Thoroughly understand your niche and document everything about them. This includes age, dining preferences, likes and dislikes, needs and wants, where they spend their time, and the type of media they consume. The more detailed your client profile, the easier it will be to locate and engage with them.
You must then tailor your communication to resonate with your niche. For instance, discussing hip-hop with most 70-year-olds might be ineffective. Use your knowledge about your niche in all aspects of your marketing, presentations, personal interactions, and client- or prospect-facing activities. Be sure to concentrate on serving your chosen niche instead of trying to cater to everyone. Learn everything about them and strive to meet their needs better than anyone else in your marketplace.
Following the example set by successful companies like Levi’s, who significantly narrowed their target audience to boost sales, can be a game-changer. By becoming an expert in serving your niche, you can position yourself for entry into the exclusive 10x club, emulating the strategies used by large, successful businesses to scale and achieve sustainable growth. Treat your financial advisory practice as a focused business entity honed in on serving a specific market segment exceptionally well.
The Done With You Model
Our specialized coaching program is designed to guide financial advisors in analyzing their best clients, along with their own strengths and preferences, to identify the most beneficial niche market for their practice. We understand that finding the right niche is crucial for advisors to stand out in a competitive market and to align their business with areas where they can excel and find the most fulfillment.
The process begins with a comprehensive analysis of the advisor’s current client base. We delve into the characteristics of their best and most profitable clients, looking at factors such as demographics, financial goals, and behaviors. This analysis helps identify patterns and commonalities that point toward a potential niche market.
Simultaneously, we conduct a thorough assessment of the advisor’s strengths, skills, and personal preferences. This involves understanding the aspects of their work they find most rewarding, the areas where they have the most expertise, and the type of clients they enjoy working with. This self-assessment ensures that the chosen niche aligns well with the advisor’s capabilities and interests, fostering professional success and personal satisfaction.
Our experienced coaches then work closely with the advisors to merge these two sets of insights. By combining the understanding of their best clients with their own strengths and preferences, advisors can pinpoint a niche market that is profitable, enjoyable, and fulfilling to serve.
Throughout the coaching process, advisors receive guidance on how to tailor their services and marketing efforts to appeal specifically to their identified niche. This includes developing targeted marketing strategies, refining service offerings, and aligning their practice’s messaging to resonate with the niche audience.
Additionally, we provide advisors with tools and techniques for continuously evaluating and refining their niche market strategy. As market conditions, client needs, and the advisor’s professional development evolve, we ensure that advisors are equipped to adapt and maintain relevance and effectiveness in their chosen niche.
By the end of our coaching program, financial advisors have a clear understanding of their most beneficial niche market, informed by a blend of client analysis and self-reflection. This strategic approach enables them to focus their efforts where they are most likely to succeed, build a strong client base, and achieve sustainable growth in their practice. Our goal is to empower advisors with the clarity, confidence, and skills needed to excel in a niche market that leverages their unique strengths and caters to their professional passions.
Question 4: Are You a Specialist in Your Field?
Consider this scenario: you receive the devastating news that you have a brain tumor requiring immediate surgery. In such a critical situation, you wouldn’t entrust your life to a general practitioner. Instead, you’d seek a specialist with a track record of successfully performing such surgeries. This principle of seeking expertise applies across all industries. For instance, you wouldn’t hire a bricklayer to paint your house. Similarly, in the financial advisory industry, specialization is key. The following paragraphs describe five considerations for defining your area of specialty.
For a financial advisor to effectively scale their business, their mission and expertise must be in sync. Crafting a compelling mission statement and value proposition is the first step. You must clearly communicate what you do and the unique value you offer to clients. More importantly, you must possess deep expertise in the area you claim to specialize in. If you focus on retirement planning, you should be an authority in that field. This involves consistent messaging, actions, and delivering tangible benefits to your clients.
The modern consumer is well-informed and discerning. If there’s a mismatch between your claimed expertise and your actual knowledge, clients will see through it. In an era where consumers thoroughly vet their options, lacking genuine mastery in your specialty will be quickly exposed, especially if clients are comparing multiple advisors.
The reality is that you can’t be an expert in everything. Attempting to do so would consume all your time, leaving none for your business. Specializing allows you to focus your learning and development in one area. Master your chosen field and outsource or refer out aspects outside your expertise.
Specializing earns you a reputation as a go-to expert in your domain. Many top-performing advisors have narrowly defined their expertise and marketed it effectively. This reputation makes you a magnet for clients seeking specific financial guidance, leading to more inbound inquiries and opportunities. Specialization makes you more referable. People tend to categorize information. If you’re known as a generalist, you might not come to mind for specific financial needs. However, if clients recognize you as an expert in, say, estate planning, you’ll be the first person they think of when the topic arises in conversations.
It’s time to align your mission with your expertise, mirroring the approach of successful businesses. Google dominates in online search and Ben & Jerry’s excels in gourmet ice cream. Just like these companies, successful financial advisors have a domain where they excel. Learn from these business models to scale and grow. Focus on honing and marketing your unique skills. By specializing in what you excel at, you’ll find that attracting new clients becomes much easier, setting you on the path to becoming a leading advisor in your market.
The Done With You Model
Our specialized coaching program assists financial advisors in aligning their unique talents and educational backgrounds with their chosen specialty, mission, and value proposition. This alignment aids in establishing a distinct and authentic professional identity, enabling advisors to effectively communicate their unique offerings and stand out in the competitive financial advisory landscape.
The coaching process begins with a thorough exploration of the advisor’s individual talents, educational achievements, and areas of expertise. This step is crucial in identifying the unique strengths and capabilities that set each advisor apart. Our goal is to unearth and highlight these distinctive attributes, forming the foundation for a compelling and authentic professional identity.
Once we clearly understand the advisor’s talents and specialties, our experienced coaches work collaboratively with the advisor to develop a mission statement that encapsulates these elements. This mission statement is more than just a formal declaration; it embodies the advisor’s core purpose, approach, and commitment to their field. It serves as a north star, guiding every aspect of their practice, from client interactions to marketing and service delivery.
Parallel to crafting a mission statement, we guide advisors in formulating a value proposition that resonates strongly with their target market. This involves articulating what services they offer and the distinct benefits clients receive, directly stemming from the advisor’s unique talents, educational background, and specialty. We ensure this value proposition is sharp and clear, differentiating the advisor from others in the market.
Throughout this process, advisors receive personalized coaching, including constructive feedback and practical advice, to ensure that their mission and value proposition align with their talents and specialty and effectively address the needs and preferences of their ideal clients. This alignment is vital for creating a strong, coherent, and attractive brand identity.
By the end of our coaching program, financial advisors will have a mission statement and value proposition that authentically represent their unique skills, education, and specialty. This strategic alignment enables them to attract and engage clients more successfully, establish a solid reputation as experts in their niche, and ultimately grow a more thriving and fulfilling practice. Our aim is to empower financial advisors to leverage their unique strengths and expertise, creating a standout presence in the financial advisory world.
Question 5: Do You Have the Proper Tools and Technology in Place?
Are you equipped with the right tools and technology for your financial advisory practice? Reflecting on the evolution of technology in our industry can provide valuable insights into how essential the right tools are for success. When I began my career in finance, the resources at my disposal were quite basic: a cubicle, a telephone, a phone book, and a rudimentary terminal for checking quotes and news. This was the era preceding electronic order entry, marked by manually submitting orders through pneumatic tubes. Those days are long gone, but they serve as a reminder of how far technology has advanced in our field.
Picture the setting of my early days: a bullpen filled with rookie advisors surrounded by the offices of million-dollar producers. My initial move as a novice in this environment was quite radical at the time. I purchased a 486 computer, a cutting-edge technology, just before the advent of the Pentium processor. When I installed Act! CRM 1.0 on it, the reaction from my colleagues was a mix of astonishment and skepticism. While some ridiculed me for relying on this “fancy electronic box,” and others advised me to stick to traditional methods like cold calling and index cards, I saw the potential in leveraging technology. Despite the teasing, I was determined to use my customer relationship management (CRM) system to gain deeper insights into my clients’ needs and preferences. This strategic use of technology played a pivotal role in my business growth, eventually leading me to join the ranks of those in the plush offices.
Today, certain technological tools are indispensable for scaling a financial advisory practice. The CRM system remains at the forefront, acting as the central nervous system of your business. It’s where you store crucial data and track key performance indicators (KPIs). It’s important to note that a simple tool like Outlook does not suffice as a CRM; its capabilities pale in comparison to a full-fledged CRM system.
Data aggregation tools are also vital. High-net-worth clients appreciate a unified view of their wealth, accessible from a single platform rather than scattered across multiple sites. Elite advisors already provide this convenience, and not offering it places you at a competitive disadvantage.
Financial planning software is another essential tool. It helps you understand and plan for your clients’ future needs, creating a clear roadmap to achieve their financial goals. Such tools also help clients grasp the purpose of their investments, encouraging them to stay committed through various market conditions.
Depending on your investment management style, a robust rebalancing program can save countless hours annually. Remember, our primary roles are to create and deepen relationships. Any tool that frees up time from administrative tasks to focus on these areas is invaluable.
Additionally, an effective email automation system is crucial for efficient marketing. Whether integrated into your CRM or as a standalone tool, it should streamline your communication and lead generation efforts. Similarly, a lead or form capture system is essential for converting online interactions into potential client leads.
Consider a conglomerate like Walmart. Without advanced systems for marketing, customer service, administration, and inventory management, it would be unable to operate efficiently. Similarly, your financial advisory practice needs the right technological tools to scale effectively. Learning from the strategies of large corporations is key to achieving substantial growth. Treating your financial advisory practice as a business means investing in technology that makes your operations efficient and client-focused. To scale and join the ranks of the 10x advisors, ensure that you’re equipped with the proper tools to run your practice like a well-oiled machine.
The Done With You Model
In our comprehensive service for financial advisors, we go beyond ensuring you have access to the essential tools for success. We actively manage and operate these tools on your behalf, effectively doing the heavy lifting of running the technology that underpins your practice. Our approach is designed to relieve you of the technical and administrative burdens, allowing you to focus on what you do best: building relationships with your clients and growing your business. Our team of experts manages various crucial aspects of your practice:
Account Analysis and Financial Planning
We conduct detailed account analyses and financial planning, ensuring that your clients receive personalized, data-driven advice and strategies.
Performance Reporting and Account Fees
We handle the intricacies of performance reporting and account fee management, providing clear, accurate, and timely information to both you and your clients.
Data Aggregation
Our services include comprehensive data aggregation, ensuring that all client information is unified and easily accessible. This provides a holistic view of your clients’ financial status, facilitating better decision-making and advice.
Comprehensive CRM with Built-In Processes
We provide a state-of-the-art CRM system, complete with built-in processes for every aspect of your practice. This system is tailored to work fast and efficiently, streamlining client management, marketing efforts, and more.
Compliance Management
Navigating the complexities of compliance is essential. Our team ensures that your practice adheres to all regulatory requirements, providing peace of mind and safeguarding your reputation.
And Much More
Our services cover a wide range of needs, from administrative support to technology management, ensuring that every facet of your practice runs smoothly and effectively.
By putting the best-of-breed technology, systems, and people in place, we ensure that you don’t have to worry about the operational side of your business. Our goal is to enable you to dedicate your time and energy to client-facing activities and strategic growth initiatives.
Our comprehensive management of these tools and processes means that you can enjoy the benefits of advanced technology and systems without the need to understand or operate them yourself. This not only enhances your efficiency but also ensures that you are always at the forefront of industry best practices.
In essence, our service equips you with a complete back-office solution, handling the complexities of technology and administration so that you can focus on delivering exceptional service to your clients and growing your advisory practice.
Question 6: Do You Have a Sales and Marketing Funnel?
The concept of a sales and marketing funnel is necessary in today’s digital age, as it guides potential clients through a structured journey from awareness to action. To illustrate the importance and effectiveness of such a funnel, let me share a personal experience highlighting the persistent and sophisticated nature of digital marketing strategies.
Back in the early 2000s, when digital marketing was evolving rapidly, I found myself searching online for an affordable internet-based screen-sharing service. I stumbled upon a promising option and clicked on their advertisement, unknowingly initiating a series of well-orchestrated marketing interactions. The initial click led me to receive intriguing information about the service. Soon, they enticed me with a white paper, for which I provided my contact details to download. Almost instantly, I received the white paper via email, followed by a personalized thank you note from a sales representative. Shortly thereafter, I got a phone call, leading to an immediate product demonstration.
Despite my initial reluctance to purchase immediately, the marketing efforts continued relentlessly. Banner ads for the service started appearing on various websites I visited, ensuring the product stayed at the forefront of my mind. The company’s persistence didn’t stop there. A few days later, the same sales representative followed up with a phone call. I then received an email comparing the features of their service with my current one. This was followed by a postcard in my mailbox, further highlighting the service’s benefits. Additional follow-up calls ensued until I finally decided to make the purchase. The post-purchase experience was equally structured and systematic. I received an email requesting a service rating, which I positively responded to, and later, another email asking for referrals.
Reflecting on this experience, it’s clear that nearly every Fortune 500 company employs a similar, meticulous process. They create a cycle of awareness, nurturing, closing, and asking for referrals. This process is tailored to each company but is always institutionalized and automated, ensuring consistency and effectiveness in every customer interaction. Every action, whether it be email, phone call, snail mail, or digital retargeting, is part of a carefully planned and executed strategy.
Now, consider your financial advisory practice. Do you have an automated process that methodically manages every client interaction throughout the engagement lifecycle? Are you aware of how many prospects are at each stage of your sales and marketing funnel? If not, it’s time to take action. Reach out to your CRM provider and inquire about their marketing automation and sales funnel capabilities. If they’re unfamiliar with these concepts, it’s crucial to find a CRM platform that aligns with these modern marketing necessities.
Emulating the tactics of successful businesses is key to scaling and achieving significant growth in your financial advisory practice. These companies don’t leave their sales and marketing to chance, and neither should you. The most successful advisors employ a well-defined, automated process proven to maximize profits and streamline client acquisition and retention. It’s time to transform your approach and align your practice with these proven business strategies.
The Done With You Model
Our service offers financial advisors a unique and highly personalized digital marketing solution, functioning as a dedicated advertising agency tailored exclusively to their needs. We focus on educating prospects and ensuring that advisors remain at the forefront of their potential clients’ minds. In addition to creating impactful digital marketing strategies, we have integrated a sophisticated sales funnel into our CRM system. This comprehensive approach ensures that every aspect of client engagement and acquisition is meticulously managed and optimized.
Personalized Digital Marketing Agency Services
Educational Content Creation
We specialize in developing informative and engaging content that positions our advisors as knowledgeable and trustworthy experts in their field. This content is designed to inform and resonate with the target audience, addressing their specific financial concerns and interests.
Targeted Advertising Campaigns
Utilizing advanced digital marketing tools, we create and manage targeted advertising campaigns. These campaigns are strategically designed to reach and engage the ideal clientele for each advisor, ensuring maximum visibility and impact.
Brand Positioning and Awareness
We work to enhance the brand presence of advisors in the digital space. This involves careful positioning to ensure that the advisor’s brand is top of mind for potential clients, reinforcing their reputation and expertise.
Advanced CRM with Integrated Sales Funnel
Prospect Tracking and Management
Our CRM system is equipped with a state-of-the-art sales funnel that tracks every prospect’s journey. This tool allows advisors to see precisely where each prospect is in the sales process, from initial contact to conversion.
Stage-Specific Outreach and Messaging
With real-time insights into each prospect’s stage in the sales funnel, advisors can tailor their outreach and messaging to be most effective. This targeted communication strategy increases the likelihood of converting prospects into clients.
Automated Follow-ups and Reminders
The system automates crucial follow-ups and sends reminders for timely outreach, so that no potential client is overlooked or forgotten.
Detailed Reporting and Analytics
Advisors have access to detailed reports and analytics, providing a clear overview of their marketing and sales performance. This data-driven approach allows for continuous optimization of strategies and tactics.
By offering both personalized digital marketing services and an advanced CRM with an integrated sales funnel, we provide a comprehensive solution for financial advisors. This approach enhances their marketing efforts and streamlines the process of managing and converting prospects. Our goal is to equip advisors with the tools and support necessary to grow their practice effectively, focusing their efforts on what they do best while we take care of the rest.
Question 7: Do You Spend Enough Money on Marketing, and Do You Calculate Return on Investment on Your Marketing Spend?
Evaluating your marketing expenditure and its ROI is a critical aspect of running a successful financial advisory business. But how much should you be investing in marketing to ensure growth?
Take Coca-Cola as a case study. Last year, the beverage giant spent a staggering $4 billion dollars on marketing. This amount constituted 11.2% of their global gross revenue. Despite being one of the most universally recognized brands, Coca-Cola continues to invest heavily in marketing. The reason is simple yet profound: to remain a top-of-mind choice for consumers and to protect their market share in a competitive industry.
This brings us to a question: Why do many financial advisors overlook or underinvest in marketing? While some advisors allocate funds for marketing, the amount is often insufficient. A quick online search about how much a financial advisor should spend on marketing yields varied opinions. The general consensus ranges between 2% and 10% of total annual gross production, with a tendency toward the lower end of this spectrum.
However, I firmly believe this is a significant underestimation. If a well-established brand like Coca-Cola needs to allocate 11.2% of its revenue to marketing, financial advisors should seriously consider investing more to build and maintain their brand presence, especially since most advisors have not achieved a brand recognition level comparable to Coca-Cola’s.
According to a 2016-2017 Gartner Research study, the average company spends about 12% of its annual revenue on marketing. Notably, the education sector spends around 18.5%, while consumer services—a category financial advisory falls under—spend an impressive 17.4%.
Considering that financial advisory is fundamentally a consumer service business, it’s prudent to align your marketing investment with these industry benchmarks. The simple truth is that spending is essential for earning. Start with a modest budget, focusing on marketing strategies that yield an acceptable ROI. Once you establish a successful marketing model with a proven conversion ratio, it’s time to scale up your investment.
Salesforce exemplifies a company that heavily invests in sales and marketing—to the tune of 49% of its revenue! In 2016, this investment equated to almost half of their $6.67 billion revenue. The result? A substantial 24% growth over the previous year.
This kind of aggressive investment in marketing and sales is a testament to the potential returns that can be realized. It’s a clear indicator that to scale and achieve substantial growth in the financial advisory sector, a similar approach is needed. Treat your practice like a business: invest in marketing, track your ROI, and be prepared to adjust your strategy to optimize growth. By doing so, you can ensure that your practice not only survives but thrives in an increasingly competitive market.
The Done With You Model
Our coaching program is meticulously crafted to assist financial advisors in identifying the most effective marketing strategies for their practice and then rigorously measuring the return on investment (ROI) of these strategies. We understand that successful marketing is not just about implementation but also about continuous evaluation and refinement. Our goal is to ensure that your marketing efforts not only resonate with your target audience but also provide tangible, profitable returns.
Determining Appropriate Marketing Strategies
Tailored Strategy Development
We begin by working closely with advisors to understand their unique market, client base, and business goals. Based on this understanding, we develop personalized marketing strategies that align with their specific needs and objectives.
Diverse Marketing Mix
Our approach includes a mix of traditional and digital marketing tactics for a comprehensive reach. This might involve content marketing, social media strategies, email campaigns, seminars, networking events, and more, depending on what resonates best with your target demographic.
Implementation Guidance
We provide step-by-step guidance on implementing these marketing strategies so you have the support and resources needed to execute them effectively.
Measuring and Analyzing ROI
Tracking and Analysis
We implement systems to track the performance of each marketing initiative. This involves analyzing key metrics such as client engagement, lead generation, conversion rates, and overall campaign effectiveness.
ROI Evaluation
We focus on quantifying the ROI of your marketing activities. This is crucial to understand the effectiveness of each dollar spent and to identify areas for optimization.
Feedback and Adjustment
Based on the ROI analysis, we provide feedback and recommendations for adjustments. This iterative process ensures that your marketing strategies are continuously refined for maximum impact and efficiency.
Scaling Up Successful Marketing Efforts
Identifying Scalable Strategies
Once we identify marketing strategies that yield a minimum of 3x ROI, we focus on scaling these tactics. This scaling is done thoughtfully to maintain effectiveness while expanding reach.
Building a Marketing Calendar
We help you develop a comprehensive marketing calendar outlining key activities, timelines, and milestones. This calendar serves as a roadmap for consistent and strategic marketing throughout the year.
Resource Allocation
We guide you in allocating financial and human resources to support this scaled-up marketing effort. This includes budget planning, team training, and potentially leveraging external marketing resources.
Continuous Monitoring and Adjustment
As your marketing efforts scale, we continue to monitor performance, making necessary adjustments to ensure ongoing effectiveness and to adapt to any market changes.
By partnering with us, financial advisors receive the tools and strategies for effective marketing, along with the expert guidance needed to make these efforts successful and profitable. Our comprehensive coaching ensures that your marketing not only resonates with your target audience but also contributes significantly to the growth and success of your practice.
Question 8: Do You Do Any Social Media-Based Marketing?
In today’s digital era, social media-based marketing is not just an option; it’s a necessity for financial advisors seeking to remain relevant and competitive. The absence from online platforms can be more than just a missed opportunity—it can be a glaring gap in your marketing strategy. To illustrate the significance and impact of social media in marketing, let’s delve into some compelling statistics and real-world examples.
Content marketing is 62% less expensive than traditional marketing methods, yet it generates approximately three times as many leads. Social media is now the leading content marketing tactic for 90% of B2C businesses. These figures highlight a fundamental shift in how information is consumed and shared. Relying on marketing tactics from a decade ago is no longer viable in today’s fast-paced, digital-first world.
Consider the story of a financial advisor I spoke with, who for 12 years had been using direct mail to invite prospects to social security planning seminars. While effective initially, this approach has recently seen a dramatic decline in results. This scenario is not unique; traditional channels of information delivery are rapidly losing their effectiveness. For instance, newspapers are dwindling, and television ads are increasingly skipped or ignored. A study by Arris reveals that 84% of viewers prefer to fast-forward through ads, and 60% record shows to skip commercials.
To understand the transformative power of the internet and social media, let’s look at Dell’s approach. Dell’s robust social media presence includes a “Conversations and Communities” team of 40 people engaging across major social channels. They run multiple blogs catering to different audiences, including a direct-to-consumer blog and various special interest blogs. Dell boasts over 65 corporate X (formerly known as Twitter) accounts and more than 400,000 followers. They effectively use Twitter for promotions, like offering discounts on laptops, which has led to over $3 million in merchandise sales via the platform. Dell’s success with social media marketing is not an isolated phenomenon. Major brands are vying for attention online, utilizing every opportunity the digital landscape offers.
A notable example is the 2016 U.S. presidential election. Hillary Clinton’s significant spending on traditional advertising was overshadowed by Donald Trump’s strategic use of the Internet and social media, demonstrating the power of these platforms in reaching and influencing large audiences.
The most successful, or 10x advisors, fully utilize online platforms. They maintain an active presence on LinkedIn, Facebook, YouTube, X, Instagram, and more. These advisors consistently post original content, engage with others’ posts, and establish themselves as experts within their digital communities. For financial advisors looking to scale and achieve significant growth, embracing the techniques used by large businesses and successful political campaigns is crucial. Your financial advisory practice must adapt to the digital age, establishing a strong online presence to build your reputation and compete effectively.
In summary, if you’re not already leveraging social media for your financial advisory practice, it’s imperative to start now. The digital landscape offers unmatched opportunities for cost-effective marketing, lead generation, and brand building. Neglecting this crucial aspect of modern marketing can leave you behind in an increasingly connected and digital-first world.
The Done With You Model
Our service offers financial advisors a comprehensive solution for designing and implementing monthly educational campaigns, a crucial strategy for staying top of mind with prospects. In today’s information-rich environment, consistently providing valuable and educational content is key to maintaining engagement and building trust with potential clients. We take the lead in managing this aspect of your marketing, allowing you to focus on your core advisory services.
Designing Monthly Educational Campaigns
Content Strategy Development
We work closely with you to develop a content strategy that aligns with your expertise and the interests of your target audience. This involves identifying key topics, themes, and financial insights that would be most beneficial and engaging to your prospects.
Content Creation
Our team of experienced content creators crafts high-quality, informative content tailored to your campaign, ranging from articles and blog posts to infographics and videos designed to educate and engage your audience.
Consistency and Quality
We ensure that the educational content is consistent in quality and frequency, establishing a regular cadence of communication with your prospects. This consistency is vital for keeping your brand and expertise top of mind.
Managing Your Facebook Page
Page Management
We take full responsibility for managing your company’s Facebook page. This includes regular updates, post scheduling, and engagement with your audience.
Campaign Implementation
Each monthly educational campaign is carefully implemented on your Facebook page. We ensure that the content is optimized for the platform, maximizing reach and engagement.
Audience Growth
We employ targeted strategies to grow your readership and expand your online presence. This involves leveraging Facebook’s advertising and targeting capabilities to reach a broader yet relevant audience.
Interaction and Engagement
We actively manage interactions on your posts, including responding to comments and messages fostering a sense of community and engagement with your brand.
Comprehensive Campaign Management
Performance Tracking
We continuously monitor the performance of your educational campaigns, providing insights into engagement metrics, reach, and audience growth.
Feedback and Optimization
Based on performance data and feedback, we refine and optimize ongoing campaigns, ensuring they remain effective and relevant to your audience.
Reporting and Communication
You receive regular reports on campaign performance and the growth of your Facebook presence, keeping you informed and involved in the process.
By entrusting us with the design and management of your monthly educational campaigns and Facebook page, you gain a powerful tool for establishing yourself as a thought leader in the financial advisory space. Our approach enhances your digital presence and builds a foundation of trust and credibility with your prospects, setting the stage for successful client relationships.
Question 9: Do You Do Center of Influence Marketing?
Center of influence (COI) marketing is an increasingly important strategy in today’s business landscape, leveraging influential individuals within a community to expand your reach and client base. The power of influencer marketing is exemplified by high-profile cases like Kim Kardashian, who earned nearly $50 million in 2017, largely through her social media influence. Similarly, companies like Sprint have effectively used influencer marketing, collaborating with notable figures to attract a vast audience. While these examples are on a grand scale, the principles of influencer marketing can be applied effectively in your local community to significantly boost your financial advisory business.
Begin by identifying key individuals in your market who hold sway over your target prospects. These could be CPAs, tax attorneys, estate planners, insurance brokers, real estate agents, and other professionals. Create a comprehensive list of all potential influencers in your area. This list will be the foundation of your outreach efforts. Develop a marketing plan to connect with these influencers through various channels—social media, email, direct mail, and phone calls. The goal is to initiate contact and lay the groundwork for a potential partnership.
Reach out to each influencer to discuss the possibility of a mutually beneficial business relationship. Invite them for a one-on-one meeting, such as a lunch, to explore opportunities for collaboration. During these meetings, clearly articulate who you are, what your financial advisory practice offers, your mission, and your unique value proposition. These influencers must understand the specific benefits you provide to clients. Don’t hesitate to ask for referrals at the end of your meeting. If these influencers understand and believe in your value, they’ll be more inclined to refer clients who could benefit from your services.
Regularly engage with your network of influencers. Share valuable content, such as newsletters or blog posts, to keep your practice top of mind. Consistent communication is key to nurturing these relationships. Continuously invest in these relationships. Regular catch-ups, such as quarterly lunches, help reinforce your presence and remind your centers of influence of the services you offer and how you can assist their clients. Treat your influencers with the utmost respect and appreciation. They are invaluable assets to your business, potentially steering a steady stream of prospects your way.
Successful financial advisors, or the 10x’ers, often employ this exact strategy. They typically have a core group of seven to ten professionals who collectively refer multiple new prospects each month. This approach can yield a substantial number of new prospects annually, contributing significantly to business growth. However, it’s important to recognize that influencer marketing is not a quick fix; it requires dedication, consistent effort, and strategic marketing to establish and maintain these valuable connections. Once you’ve built your network of influencers, the returns can be substantial and long-lasting.
In addition to COI marketing, various other marketing strategies should be part of your overall approach. While influencer marketing is a powerful tool, it should be one of several methods employed in building and expanding your business. Start developing your network of influencers today, and take a significant step toward securing your place in the 10x club.
The Done With You Model
Our service offers financial advisors a comprehensive solution for crafting a tailored marketing plan focused on identifying and cultivating relationships with local influencers. Recognizing the immense value that these connections can bring to your practice, we provide a strategic and systematic approach to building and nurturing these key relationships.
Identifying Local Influencers
Market Analysis
We begin by conducting a thorough analysis of your local market to identify key individuals and entities who hold sway in your target demographic. These influencers could range from professionals like CPAs, estate attorneys, and real estate agents to community leaders and local celebrities.
Influencer Profiling
Once potential influencers are identified, we help you create detailed profiles for each. This involves understanding their areas of influence, the demographics of their audience, and their relevance to your financial advisory services.
Customized Influencer List
Based on the analysis and profiling, we compile a curated list of local influencers. This list serves as the foundation for your outreach and relationship-building strategy.
Crafting a Relationship-Building Strategy
Outreach Plan Development
We design a multi-faceted outreach plan encompassing various communication channels such as social media, email, direct mail, and personal meetings. Our goal is to establish initial contact and lay the groundwork for a strong collaborative relationship.
Engagement and Networking
We guide you in engaging with these influencers through networking events, community gatherings, and one-on-one meetings. This face-to-face interaction is crucial for establishing trust and rapport.
Value Proposition Communication
A key part of our strategy is to assist you in clearly articulating your value proposition to these influencers. They must understand how partnering with your practice can be mutually beneficial and serve their audience or clients.
Cultivating and Maintaining Influencer Relationships
Regular Communication
We establish a schedule for regular communication with influencers to keep your practice top of mind. This includes sharing informative content, updates on your services, and insights into the financial industry that may interest them.
Continuous Engagement
Our team helps you plan and execute ongoing engagement activities such as hosting joint events, collaborative content creation, or co-branded initiatives, further strengthening the relationship.
Feedback and Adaptation
We continually gather feedback from you and the influencers to adapt and refine the relationship-building strategy, ensuring it remains effective and mutually beneficial.
Long-Term Relationship Management
Building these relationships is not a one-off task but an ongoing process. We assist in maintaining and deepening these connections over time, recognizing that they are invaluable assets to your business.
By partnering with us, you gain the expertise and support necessary to effectively identify and engage with local influencers in your community. This strategic approach expands your network and significantly enhances your visibility and credibility in the market, paving the way for growth and success in your financial advisory practice.
Question 10: Do You Have a Multifaceted or Multi-pronged Marketing Plan?
Having a multifaceted or multi-pronged marketing plan is essential in today’s dynamic and unpredictable market. A striking example of the need for diversified marketing strategies is Pepsi’s ill-fated 2017 advertisement featuring Kendall Jenner. The ad, which insensitively echoed the Black Lives Matter movement, provoked widespread criticism, including from the daughter of Martin Luther King Jr., leading to a public relations disaster and a hurried retraction by Pepsi. This incident underscores the risks of relying on a single approach or message in your marketing efforts.
Marketing campaigns can be unpredictable, and what works today might not work tomorrow. In my early career, I experienced the highs and lows of such unpredictability. I discovered a marketing campaign that initially yielded incredible returns, turning every dollar invested into eight to ten dollars in revenue. Encouraged by these results, I heavily invested in this strategy, expanding my office and staff. However, after two years of success, the campaign’s effectiveness abruptly ceased, leaving me with the financial burden of a scaled-up business but without a sustainable marketing strategy to support it.
This scenario is not unique. Fortune 500 companies understand the importance of a comprehensive marketing plan encompassing various channels and campaigns. These might include television, radio, social media, direct mail, email, and referral marketing. Diversification in channels and messaging is required to reach different segments of the target audience and mitigate the risks associated with marketing.
Unfortunately, many financial advisors lack this diversity in their marketing approaches. Often, they find a single message and channel that works and stick with it, not realizing the diminishing returns until it’s too late. In contrast, the most successful advisors—the 10x advisors—spread their marketing investments across multiple channels and continuously monitor the ROI of each campaign. They are adept at identifying when a campaign is losing effectiveness and are prepared to adapt or withdraw it accordingly.
The lesson from Pepsi’s 2017 debacle, and my own experience, is clear: All marketing is not infallible, and it’s crucial to have the agility to change course when necessary. Leading companies like Google, Amazon, Intel, and Apple would never risk relying on a single marketing strategy, understanding that one misstep could have significant repercussions.
Therefore, it is vital for financial advisors to diversify their marketing efforts. Explore and invest in various channels, continuously measure the effectiveness of each campaign, and be ready to make changes as needed. By spreading your marketing efforts across multiple channels and strategies, you not only mitigate risks but also increase the chances of reaching a wider, more varied audience, paving the way for sustainable growth and success in your financial advisory practice.
The Done With You Model
Our service provides financial advisors with a comprehensive solution for creating a diversified marketing approach. Recognizing the dynamic nature of the market and the diverse needs of potential clients, our strategy encompasses a variety of marketing channels and tactics. This diversified approach is designed to maximize reach, engage different segments of the market, and mitigate the risks associated with relying on a single marketing method.
Developing a Multi-Channel Marketing Plan
Comprehensive Market Analysis
We start by conducting an in-depth analysis of your target market. This helps us understand the various segments within your potential client base and their unique preferences and behaviors.
Customized Marketing Mix
Based on the market analysis, we craft a marketing mix that combines different channels such as digital (social media, email, content marketing), traditional media (print, radio, TV), and direct marketing. This mix is tailored to align with your specific business goals and the identified needs of your target market.
Content Strategy and Creation
We develop a content strategy that addresses the diverse interests of your audience. This includes creating a range of content types—from informative articles and blogs to engaging videos and infographics—distributed across different platforms.
Implementing Targeted Campaigns
Segmented Marketing Campaigns
We design and implement targeted marketing campaigns for different segments of your audience. These campaigns are tailored to resonate with each group, increasing relevance and effectiveness.
Continuous Campaign Monitoring
Every campaign is closely monitored to assess performance across different channels. This monitoring helps identify successful strategies and areas that need adjustment.
Adaptability and Responsiveness
Our approach is highly adaptable, allowing us to quickly respond to market changes and adjust strategies as needed. This agility ensures that your marketing efforts remain effective and relevant.
Measuring and Adjusting for Success
ROI Analysis
We provide a detailed analysis of the return on investment (ROI) for each marketing channel and campaign. Understanding the ROI helps in making informed decisions about future marketing investments.
Feedback Loop for Continuous Improvement
We establish a feedback loop incorporating insights from campaign performance, market trends, and client feedback. This loop is crucial for continuous improvement and adaptation of your marketing strategy.
Regular Reporting and Consultation
You will receive regular reports detailing the performance of your marketing efforts, along with expert consultation on potential adjustments or new opportunities.
By collaborating with us, financial advisors benefit from a diversified marketing strategy that is robust, responsive, and aligned with their business objectives. Our approach enhances your visibility and reach and supports sustainable growth by effectively engaging with different market segments. This diversified marketing plan ensures you are well-equipped to navigate the ever-changing market landscape and successfully connect with a wide range of potential clients.
Question 11: Do You Survey Your Client Base Quarterly Using Net Promoter Score (NPS)?
Regularly surveying your client base using tools like the NPS is crucial for maintaining and enhancing client satisfaction. The adage, “It’s more work to get a new client than to keep an existing one,” rings particularly true in the financial advisory sector. Yet, many financial advisors overlook the importance of consistently engaging with their clients to gauge satisfaction and gather insights. Understanding your clients goes far beyond knowing their financial metrics; it involves delving into their deeper preferences, anticipating their needs, and ensuring their utmost satisfaction with your services.
Imagine a scenario where major corporations don’t survey their customers. Such a lack of engagement would leave these companies blind to evolving customer preferences, unable to adapt their products and services in a timely manner, and clueless about whether they’re meeting their unique value propositions. For business leaders, from CEOs of Fortune 100 companies to product design teams, customer feedback is integral to navigating market demands and maintaining a competitive edge. In essence, customer surveys are not just tools for gathering feedback; they’re essential for the survival and success of a business.
Despite the proven importance of client surveys, many advisors remain complacent, often assuming they fully understand their clients’ needs or believing that surveys are unnecessary or too burdensome. This mindset is a significant oversight. If client retention in the financial industry were as strong as these assumptions suggest, the average duration of client relationships would surpass the current six years, and fewer clients would be open to seeking second opinions.
The world is evolving at an unprecedented pace, making regular client feedback more critical than ever. Without a system for continuous engagement and feedback, financial advisors risk facing a situation akin to the downfall of Blockbuster Video, overtaken by rapidly changing market dynamics.
Regular surveys highlight which clients are dissatisfied, providing an opportunity to address issues before clients decide to switch advisors. As client preferences and external factors evolve, surveys can help you adapt your offerings to meet these changing needs, keeping you ahead of competitors. Feedback can reveal which of your services or practices are underappreciated or unneeded, allowing you to focus your resources more effectively. Conducting surveys shows your clients that you value their opinions and are committed to meeting their needs. Regular engagement through surveys helps keep you top of mind with your clients, potentially leading to higher retention rates and more referrals.
Recognizing the importance of client feedback, it’s essential to incorporate regular surveys into your practice. This approach is not a guaranteed path to success on its own, but neglecting it could lead to setbacks or failure. Just as major businesses use customer feedback to drive growth and adapt to market changes, financial advisors must embrace this practice to thrive. Begin by surveying your clients quarterly and witness the transformative impact of informed, client-centric decision-making on your practice’s growth and success.
The Done With You Model
Our coaching program is specifically designed to help financial advisors implement and monitor an NPS survey, an invaluable tool for gauging client satisfaction and loyalty. With its simplicity and effectiveness, the NPS survey is a critical component for understanding and enhancing your client relationships. Our approach assists in the survey setup and ensures its ongoing effectiveness through continuous monitoring and analysis.
Guidance on Implementing the NPS Survey
Survey Design and Customization
We work with you to design an NPS survey that fits seamlessly with your brand and communication style. This includes formulating the central question and any follow-up questions that can provide deeper insights into client responses.
Integration and Deployment
Our team guides you on integrating the NPS survey into your client communication channels, such as email newsletters, client portals, or your website. We strategize the best timing and methods for deploying the survey to maximize client engagement and response rates.
Training on Best Practices
We provide comprehensive training on NPS survey best practices, including how to encourage honest client feedback and techniques for increasing response rates.
Monitoring and Analyzing Survey Results
Data Analysis Support
Once your survey is deployed, we assist in collecting and analyzing the responses. This process includes categorizing clients as promoters, passives, or detractors and understanding the underlying reasons for their scores.
Regular Review Sessions
We conduct regular review sessions to discuss survey results. These sessions offer insights into client satisfaction trends, areas for improvement, and strategies to enhance client relationships.
Actionable Feedback Implementation
Based on the survey findings, we provide actionable recommendations. This might involve refining your service offerings, improving communication strategies, or addressing specific client concerns.
Continuous Improvement and Adaptation
Ongoing Coaching and Support
Our coaching extends beyond the initial survey implementation. We continue to provide support and guidance on administering the survey regularly, ensuring it remains an effective tool for client feedback.
Adapting to Client Feedback
We help you adapt your business practices based on client feedback, ensuring that your services evolve in line with client expectations and industry standards.
Feedback Loop for Service Enhancement
We establish a feedback loop that uses survey results to continually enhance the client experience, reinforcing the strengths and addressing any weaknesses in your practice.
Through our coaching program, financial advisors are empowered to implement and utilize an NPS survey effectively. This tool becomes integral in measuring and improving client satisfaction, ultimately contributing to the growth and success of your financial advisory practice. Our goal is to ensure that you have the insights and support needed to build a strong, client-focused business that thrives on positive client relationships and referrals.
Question 12: Do You Have a Client Onboarding Process?
Having a comprehensive client onboarding process is necessary when establishing a lasting, trust-based relationship with your new clients. It’s your golden opportunity to set the right tone, align expectations, and begin building a solid foundation of trust and understanding. Client onboarding goes beyond mere administrative tasks; it encompasses everything necessary to integrate a new client into your business seamlessly and reassuringly.
Recently, I had a conversation with a financial advisor about their new client onboarding process. The response was, “I just fill out the new account forms and send them in.” This approach is startlingly insufficient. Onboarding is about much more than paperwork; it’s about ensuring that your client feels valued, understood, and confident in your services from the outset.
A client’s decision to switch advisors is often fraught with apprehension. The transfer of assets, the adaptation to new systems, and the establishment of a new financial relationship can be daunting. A comprehensive onboarding process can alleviate these concerns and cement the client’s confidence in their decision.
Create an exhaustive onboarding checklist of tasks for the first three months of the client relationship. This should include the necessary paperwork and forms as well as actions that enrich the client experience. Even seemingly minor details matter. Ensure the client is added to your newsletter list, schedule birthday card deliveries, send ‘thank you’ letters for choosing your services, and arrange introductions to your team. These small gestures can significantly enhance client satisfaction. Consider creating personalized welcome packs or informational guides that help new clients feel informed and valued. This can include an overview of your services, key contacts within your firm, and answers to frequently asked questions.
Establish regular check-ins with the client during the initial period. This not only ensures that any of their questions are promptly addressed but also demonstrates your commitment to their financial well-being. Utilize your CRM system to automate repetitive tasks and delegate non-client-facing activities to your assistant or support staff. Automation can streamline the process so no critical steps are missed.
Top-tier companies understand the importance of an effective onboarding process. They strive to immediately showcase the value of their services and provide an exceptional experience right from the start. The first 90 days are crucial; research shows that clients are three times more likely to leave during this initial period. Therefore, a thorough and thoughtful onboarding process can significantly impact client retention and satisfaction. Just as Fortune 500 companies have mastered the art of customer onboarding, financial advisors should adopt similar strategies. A well-executed onboarding process impresses new clients and can increase the likelihood of referrals due to the exceptional service received.
In conclusion, treat your financial advisory practice as a serious business by implementing a structured and comprehensive client onboarding process. This approach will not only ensure client satisfaction and loyalty but also lay the groundwork for sustainable growth and a thriving practice.
The Done With You Model
Our coaching service aims to help financial advisors build and implement a robust client onboarding process, a critical aspect of establishing lasting client relationships. Recognizing that a well-structured onboarding experience can significantly enhance client satisfaction and retention, we provide comprehensive guidance and support throughout the development and execution of this process. Furthermore, we have developed advanced technology to automate various aspects of onboarding, ensuring a smooth, efficient, and error-free experience for both advisors and their clients.
Building a Tailored Onboarding Process
Consultation and Strategy Development
We start with an in-depth consultation to understand your unique practice and client base. This allows us to help you develop an onboarding strategy that aligns with your specific business model and client needs.
Customized Onboarding Plan
We assist in creating a customized onboarding plan, which includes a detailed checklist of activities and interactions to be undertaken with new clients. This plan covers all aspects of the onboarding process, from initial paperwork to personalized welcome gestures.
Integration with Your Services
We ensure that the onboarding process is seamlessly integrated with your existing services and communication methods, providing a consistent and professional experience for new clients.
Implementing the Onboarding Process
Training and Support
Our team provides comprehensive training and support to you and your staff in executing the onboarding plan. This includes best practices for client communication, handling documentation, and personalizing the client experience.
Continuous Monitoring and Feedback
We monitor the implementation of the onboarding process, providing regular feedback and suggestions for improvement. This ensures that the process remains effective and adapts to any changes in your practice or client expectations.
Leveraging Technology for Automation
Automated Onboarding System
Our state-of-the-art technology automates aspects of the onboarding experience. This includes automated workflows for document processing, welcome emails, appointment scheduling, and follow-up reminders.
Integration with CRM
The onboarding automation is integrated with your customer relationship management (CRM) system, ensuring that all client information is captured accurately and that each step of the onboarding process is tracked and managed effectively.
Customizable Automation Features
We offer customizable automation features that allow you to tailor the onboarding experience to each client’s specific needs, adding a personal touch to the automated processes.
Benefits of a Structured Onboarding Process
Enhanced Client Experience
A well-implemented onboarding process ensures that new clients feel valued and informed, setting the tone for a positive long-term relationship.
Efficiency and Reliability
Automation reduces the risk of errors and oversights, making the onboarding process more efficient and reliable.
Time-Saving
By automating routine tasks, advisors can save time and focus more on client interaction and relationship building.
Our coaching and technology services provide financial advisors with the tools and guidance needed to build and implement a successful client onboarding process. By combining personalized coaching with advanced automation technology, we help you create an onboarding experience that is efficient, effective, and tailored to your clients’ needs, laying a strong foundation for a successful advisory practice.
Question 13: Do You Have a Client Servicing Model?
In the world of business, having a well-structured client servicing model is a cornerstone of success, particularly in the financial advisory sector. This model differentiates how you interact with and manage clients based on their potential and value to your practice. Much like how large corporations, such as Verizon, tailor their customer service experience based on the client’s potential revenue impact, financial advisors must adopt a similar approach.
Consider the different treatment given to a corporate customer seeking cell phone services for a large company versus an individual looking for a personal plan. This distinction in service is not arbitrary; it’s a strategic approach to maximize efficiency and revenue. Similarly, as a financial advisor, understanding and segmenting your client base into different categories, such as A, B, or C clients, is essential. This classification could be based on various factors like assets under management, revenue generation, the number of referrals, or other relevant criteria.
There are several steps to consider when developing your client servicing model. Start by determining the criteria for classifying clients into categories (A, B, C). These criteria, such as AUM, revenue, or referral history, should be clear and quantifiable. Once classified, define the level and type of service each category will receive. For instance, A clients might receive biannual in-person meetings, B clients annual reviews, and C clients virtual check-ins. Your client servicing model should encompass all aspects of client interaction. This includes regular communications, meeting schedules, special gestures like birthday acknowledgments, and any other client engagement activities.
Adhering to this model is where many advisors falter, yet it’s crucial for efficient and effective client management. Sticking to a well-defined client servicing model is vital for several reasons. Properly segmenting clients allows you to allocate your time and resources effectively. Your top-tier clients, who contribute the most to your revenue, should receive the bulk of your attention. Clearly communicating the level of service each client can expect sets a transparent framework for the relationship, reducing the risk of dissatisfaction due to mismatched expectations. A structured client servicing model aids in focusing your efforts where they are most profitable so higher revenue-generating clients receive appropriate attention. Aligning client expectations with reality leads to higher satisfaction. Satisfied clients are more likely to provide referrals, contributing to your practice’s growth. A clear model provides your team with a blueprint for client engagement, leading to more efficient operations, satisfied employees, and, in turn, happier clients.
Fortune 500 companies routinely segment their clients and tailor their services accordingly. This approach is a proven method for maximizing client satisfaction and operational efficiency. By emulating these strategies, financial advisors can elevate their practices, providing better service, enhancing client satisfaction, and ultimately, achieving sustainable growth. Establishing and meticulously adhering to a client servicing model is not just about managing client relationships; it’s about optimizing your practice’s efficiency and effectiveness. It’s an approach that ensures your efforts are proportionate to the value each client brings, leading to a more profitable, well-run practice.
The Done With You Model
Our coaching program assists financial advisors in building and implementing an effective client servicing model. This model is vital for establishing clear expectations, efficiently allocating resources, and ensuring high levels of client satisfaction. We understand that each financial advisory practice is unique, and therefore, our approach is personalized to align with your specific client base and business goals.
Developing a Customized Client Servicing Model
Needs Assessment and Strategy Development
We begin by conducting a comprehensive assessment of your current client base and service offerings. This helps us understand your unique business needs and challenges, forming the basis for a tailored client servicing model.
Segmentation Strategy
We guide you in segmenting your client base into distinct categories, such as A, B, and C clients. This segmentation is based on various criteria relevant to your practice, such as assets under management, revenue contribution, and referral potential.
Service Level Design
For each client segment, we help design a corresponding level of service. This might include determining the frequency and type of meetings, communication methods, and personalized touches for each category.
Implementation Plan
We develop a detailed implementation plan that outlines the steps, timelines, and responsibilities for rolling out the new client servicing model.
Training and Support for Implementation
Staff Training
We provide training for you and your team on the new client servicing model. This includes understanding the rationale behind client segmentation and how to deliver the designated service levels effectively.
Operational Integration
Our team assists in integrating the client servicing model into your daily operations. This includes setting up systems and processes to ensure the model is followed consistently.
Resource Allocation
We help you allocate your time and resources efficiently according to the new model, ensuring that high-value clients receive the appropriate level of attention.
Monitoring and Continuous Improvement
Feedback Mechanisms
We establish mechanisms for gathering client feedback on the services provided. This feedback is crucial for assessing the effectiveness of the new servicing model.
Regular Reviews
We conduct regular reviews with you to assess the performance of the client servicing model and make any necessary adjustments.
Ongoing Coaching and Support
Our support continues beyond the initial implementation. We provide ongoing coaching to help you refine and improve the servicing model as your practice evolves.
By partnering with us, financial advisors gain the expertise and support necessary to develop and implement a client servicing model that enhances client satisfaction, improves operational efficiency, and supports the growth of your practice. Our goal is to ensure that your client servicing model meets your clients’ current needs and positions your practice for long-term success and sustainability.
Question 14: Do You Have a Process for Getting Referrals?
Developing a systematic process for generating referrals is a strategy that every financial advisor should prioritize. Just as major retail companies and online platforms often prompt customers to recommend their products or services to others, financial advisors can significantly benefit from a well-structured referral program. Despite its importance, many advisors overlook this potent growth lever.
In my interactions with financial advisors, I frequently inquire about their strategies for cultivating referrals. Surprisingly, a vast majority admit to being ineffective in this area. The underlying issue often boils down to a simple yet critical oversight: they don’t actively ask for referrals. This omission can significantly impact the growth and profitability of your practice. Consider the economics of referrals. If a retailer spends $100 to acquire a new customer and one in ten customers brings in a referral, the cost of acquiring the eleventh customer effectively becomes zero. This scenario reduces the average customer acquisition cost and enhances marketing efficiency. In the context of financial advisory, where relationships are paramount, the impact of referrals can be even more profound.
For instance, an advisor with a $350,000 annual gross dealer concession (GDC) spending 12% on marketing equates to $42,000 a year, averaging $1200 per new client. If this advisor could get half of their existing clients to refer just one new client, the number of new clients per year could jump to 52.5, with the cost per acquisition plummeting to $800. This is a significant saving achieved without increasing the marketing budget.
Implementing a strategic referral program is imperative. Referral generation should be approached with the same rigor as any other marketing campaign. It requires planning, execution, and follow-up. Utilize both passive and active methods when asking for referrals. Passive asks can be integrated into various client-facing materials and communications, gently reminding clients of your willingness to assist their acquaintances. These prompts can be included in email signatures, performance reports, and marketing materials. More direct approaches or active asks can be highly effective. For example, leverage client satisfaction surveys, such as those based on the Net Promoter Score, to identify satisfied clients likely to provide referrals. Follow these surveys with a personal call to request a referral. Regularly ask for referrals at the end of client meetings or after delivering exceptional service. The key is to make referral requests a consistent part of your client interactions. Provide training and develop scripts for yourself and your team to ensure everyone is comfortable and effectively asking for referrals.
Large corporations understand the power of referrals. They have systems in place to consistently and effectively request referrals, knowing that it’s a cost-effective way to acquire new customers and boost their bottom line. Emulating these practices in your financial advisory practice can lead to substantial growth and advancement towards becoming a 10x advisor.
In summary, actively seeking referrals should be integral to your business strategy. Implementing a structured, consistent referral program can significantly decrease client acquisition costs and contribute to the overall growth of your practice. Remember, the success of your referral program hinges on your willingness to ask—because if you don’t ask, you won’t receive.
The Done With You Model
Our coaching program is specifically designed to empower financial advisors with the tools and strategies necessary to create a systematic plan for increasing referrals. Recognizing that referrals are a vital component for the growth and sustainability of a financial advisory practice, we focus on developing a structured approach that integrates seamlessly into your business model.
Developing a Strategic Referral Plan
Understanding Your Client Base
We begin by analyzing your current client base to identify potential referral sources. This involves understanding who your most satisfied and engaged clients are, as these individuals are more likely to refer others to your services.
Referral Process Design
We help you design a referral process that is both efficient and effective. This includes identifying the right times and circumstances to ask for referrals and developing a clear, easy-to-follow method for your clients to make referrals.
Training on Referral Techniques
Our team provides comprehensive training on effective referral techniques. This includes how to ask for referrals, how to nurture referral sources, and how to follow up on referral leads.
Implementing the Referral Strategy
Integration with Client Interactions
We assist in integrating the referral process into your regular client interactions. This ensures that asking for referrals becomes a natural part of your client communication rather than an afterthought.
Creating Referral Incentives
Where appropriate, we guide you in creating incentive programs to encourage clients to refer others. This could include special acknowledgments, small gifts, or other tokens of appreciation that align with regulatory guidelines.
Communication and Marketing Materials
We help develop marketing and communication materials that support your referral program. This includes drafting referral request scripts, creating email templates, and designing referral cards or brochures.
Monitoring and Refining the Process
Tracking Referral Success
We establish systems to track the success of your referral program, including the number of referrals received, the conversion rate of referrals to clients, and the overall impact on your business growth.
Continuous Improvement
Based on the tracking data, we provide insights and recommendations for refining your referral strategy. This is a continuous process where we help you adapt and improve your approach based on actual results and client feedback.
Ongoing Support and Coaching
Our support extends beyond the initial setup. We offer ongoing coaching and assistance to ensure that your referral program remains dynamic and continues to yield positive results.
By partnering with us, financial advisors learn how to effectively ask for and manage referrals and how to create a culture within their practice that values and nurtures these vital business leads. Our goal is to ensure that your referral program becomes a key driver for new business and contributes to the long-term success and growth of your financial advisory practice.
Question 15: Do You Have a Process for Multi-generational Client Retention?
Establishing a process for multi-generational client retention is becoming increasingly crucial in the financial advisory sector. To draw a parallel, consider Amazon, which invests nearly $4 billion annually in marketing and has reaped the rewards through consistent, rapid growth. Yet, the financial advisory industry faces a starkly different challenge. Despite potentially increased marketing investments and more labor-intensive efforts, many advisors may see no growth in their assets under management. This scenario is particularly true for advisors who fail to focus on multi-generational client retention.
According to U.S. News and World Reports, baby boomers control 70% of all disposable income in the United States. However, as per an InvestmentNews survey, two-thirds of heirs fire their parents’ financial advisors after receiving an inheritance. Accenture’s study adds to this concern, revealing that $30 trillion is expected to transfer from baby boomers to their heirs in the coming decades.
This wealth transfer presents both a challenge and an opportunity. Without a strategy for multi-generational retention, advisors risk losing AUM as their primary client base ages. For every new account gained, another may be lost due to the generational shift. Despite the clear indicators and extensive discussions within the industry, many advisors lack a structured approach to multi-generational client retention. Addressing this gap allows for sustainable growth and success.
There are multiple strategies for multi-generational client engagement. Proactively engage with the children and heirs of your current clients. This involves more than just casual acquaintance; it requires building genuine, trust-based relationships. Offer financial education tailored to younger generations. This could include workshops, seminars, or digital content that addresses their specific financial challenges and goals. Involve clients’ families in the financial planning process where appropriate to build a rapport with the next generation and familiarize them with your approach and values. Utilize technology platforms and communication styles that resonate with younger clients. This might involve digital meetings, social media engagement, and interactive financial tools. Develop service offerings relevant to younger generations, such as advice on student loans, starting a business, or early-career financial planning.
To mitigate the risk of client loss, consider the following strategies. Offer comprehensive legacy planning, encouraging clients to discuss their financial values and intentions with their heirs. For high-net-worth clients, consider offering family governance services to help manage and maintain family wealth across generations. Host events that include clients’ families, providing an informal setting for engagement and relationship building. Conduct regular check-ins with clients and their families to ensure that their evolving needs are being met.
In conclusion, just as Amazon and other successful corporations plan for future generations to maintain their market relevance, financial advisors must adapt their practices to cater to the needs of both current and future generations. This strategic shift is not just about retaining assets; it’s about actively participating in one of the largest wealth transfers in history. By starting now and focusing on multi-generational client retention, financial advisors can secure a prosperous future for their practice.
The Done With You Model
Our coaching program is dedicated to helping financial advisors develop a systematic plan for cultivating multigenerational client relationships, a critical strategy in the face of the impending wealth transfer between generations. Recognizing the potential loss of assets due to generational shifts, our approach focuses on proactive engagement and relationship building with both current clients and their heirs.
Developing a Multigenerational Client Strategy
Understanding Generational Dynamics
We start by educating advisors on the different financial needs, preferences, and communication styles of various generations. This knowledge is crucial for effectively engaging with both existing clients and their heirs.
Customized Engagement Plans
We assist in creating tailored engagement plans that address the interests and needs of different generations. This includes developing specific services and communication strategies for younger clients, such as digital financial tools and educational content relevant to early-career challenges.
Inclusive Financial Planning
Our team guides advisors in involving the entire family in the financial planning process. This approach aids in understanding the family’s collective goals and establishing trust with younger family members.
Implementing the Strategy
Training and Skill Development
We provide comprehensive training to advisors and their teams on communicating and building relationships with clients across generations. This includes effective communication techniques, the use of technology, and the nuances of advising younger clients.
Client Events and Workshops
We help plan and execute client events and workshops that are appealing and beneficial to all generations. These events provide advisors with opportunities to connect with clients’ families in a more personal and engaging setting.
Legacy and Estate Planning Services
We advise on offering specialized legacy and estate planning services, which can facilitate discussions about wealth transfer and financial values within families.
Monitoring and Adapting the Approach
Feedback Mechanisms
We establish processes to gather feedback from clients and their families, helping advisors understand the effectiveness of their multigenerational strategies and identify areas for improvement.
Regular Strategy Reviews
We conduct periodic reviews of the multigenerational engagement strategy, ensuring it remains aligned with the evolving needs of the clients and the broader market trends.
Ongoing Coaching and Support
Our support extends beyond the initial implementation. We offer ongoing coaching and guidance to help advisors continuously refine their approach to multigenerational client engagement.
By partnering with us, financial advisors gain the expertise and tools necessary to create and maintain strong relationships with clients and their heirs. This strategic focus on multigenerational engagement is essential for retaining and growing AUM in the face of significant generational wealth transfers. Our goal is to empower advisors to build a sustainable practice that thrives across generations, ensuring long-term success and client loyalty.
Question 16: Do You Do Regular Client Appreciation Events?
The importance of regular client appreciation events in the financial advisory sector cannot be overstated. Picture this scenario: You start your day with optimism, a hot cup of coffee in hand, ready to tackle the challenges ahead. However, your day takes a sharp turn when you discover a long-term client has transferred their account elsewhere without any prior notice. This situation is not just disheartening; it’s a moment of introspection. Why did this loyal client of 15 years decide to leave so abruptly?
Contrary to the common assumptions that clients leave due to dissatisfaction with services or being swayed by competitors, the Rockefeller Group’s study reveals a different reality: 68% of clients leave because they perceive a lack of care from their advisor. This statistic highlights a crucial aspect of client retention that is entirely within an advisor’s control.
Sending holiday or birthday cards, while a nice gesture, is insufficient for building deep, personal connections. These efforts, often perceived as generic, fail to demonstrate genuine care and understanding of clients as individuals. This is where client appreciation events can make a significant difference. These events offer a unique opportunity to bond with clients beyond the professional setting. They allow clients to see you as a service provider and a person who values their relationship. Well-organized events can boost client engagement, making clients feel valued and appreciated. Happy clients are more likely to refer others to your services. Events create positive experiences that clients are eager to share with others. Hosting successful events elevates your profile and credibility, both personally and for your business.
Showing appreciation in tangible ways fosters client loyalty. Clients are less likely to leave a business where they feel genuinely valued and part of a community. Use these events as a platform to gather feedback about your services, gaining insights that can guide your business improvements. Encouraging clients to bring a guest opens up opportunities for new business. While reinforcing existing relationships, you simultaneously lay the groundwork for new ones. The most effective client appreciation events are those that allow clients to bring a guest. This approach strengthens your bond with existing clients and introduces you to potential new clients in a relaxed, positive setting. In implementing these events, consider the different interests and preferences of your client base. Whether it’s a formal dinner, a casual get-together, or an educational seminar, the event should reflect your brand and your clients’ tastes.
The sheer number of corporate event planning companies and their success underlines the importance of such events in business strategy. Almost every Fortune 500 company invests in rewarding and integrating their top clients into their community. This investment is not just about appreciation; it’s a strategic business move to solidify long-term client relationships.
In summary, regular client appreciation events are more than just a nice gesture; they are a strategic necessity in today’s competitive financial advisory landscape. These events play a pivotal role in client retention, referral generation, and overall business growth. Start incorporating them into your practice and watch as they transform your client relationships and, ultimately, the trajectory of your business.
The Done With You Model
Our coaching program provides comprehensive guidance to financial advisors on planning and executing successful client appreciation events, an essential component of a holistic marketing strategy. Recognizing the significant impact these events can have on client loyalty, referrals, and overall brand perception, we help advisors integrate them seamlessly into their annual marketing calendars.
Strategic Planning for Client Appreciation Events
Event Conceptualization
We begin by assisting advisors in conceptualizing client appreciation events that align with their brand and resonate with their client base. This includes determining the type of event (formal, casual, educational, etc.), themes, and activities that will appeal to the clients.
Budgeting and Resource Allocation
Our team provides guidance on budgeting, ensuring that the event is both impactful and cost-effective. We help identify necessary resources and allocate them appropriately for maximum event success.
Target Audience Identification
We assist in identifying the target audience for each event, ensuring that the right mix of clients and potential clients are invited to maximize relationship-building opportunities.
Event Execution and Marketing Integration
Marketing Calendar Integration
We help advisors integrate client appreciation events into their overall marketing calendar. This ensures that these events are strategically planned throughout the year and complement other marketing activities.
Invitation and Promotion
Our team assists in designing and distributing event invitations and promotional materials. We ensure that the communication effectively conveys the value of the event and encourages attendance.
Logistics and Coordination
We provide support in managing the logistics of the event, from venue selection to catering and entertainment. Our focus is on ensuring a seamless and enjoyable experience for all attendees.
Post-Event Follow-Up and Feedback Collection
Post-Event Engagement
After the event, we guide advisors through effective follow-up strategies to maintain the momentum built during the event. This might include personalized thank-you messages, sharing event highlights, or addressing any specific
feedback received.
Feedback Collection and Analysis
We establish mechanisms for collecting and analyzing feedback from attendees. This feedback is critical for assessing the event’s success and identifying areas for improvement in future events.
Referral Opportunity Maximization
We advise on how to leverage the goodwill generated during the event to encourage referrals, including training on how to make a soft referral ask post-event.
Ongoing Support and Continuous Improvement
Regular Reviews and Adjustments
We conduct regular reviews with advisors to assess the effectiveness of their client appreciation events and make necessary adjustments for future events.
Continuous Coaching and Training
Our coaching extends beyond a single event. We provide ongoing support and training to ensure that client appreciation events continue to be a valuable part of the advisor’s marketing strategy.
By partnering with us, financial advisors gain the skills and knowledge to host successful client appreciation events and integrate these events into a broader, strategic marketing approach. Our goal is to ensure that these events contribute significantly to enhancing client relationships, increasing referrals, and ultimately, growing the advisory practice.
Question 17: Do You Send Out a Monthly Newsletter or Blog?
In the financial advisory world, maintaining consistent contact with potential clients is key to transforming them into actual clients. A monthly newsletter or a blog is an excellent tool for staying at the forefront of your prospects’ minds, ensuring that they think of you when they’re ready to make a financial decision.
To illustrate the importance of this approach, let’s draw a parallel from the automotive industry. When I was in the market for a new SUV, the decision process stretched over 14 months, even though the need for a new vehicle was apparent early on. The lack of consistent follow-up from the dealerships I visited played a significant role in this delay. While initial interactions were engaging, they were quickly dropped when an immediate sale seemed unlikely. This lack of continued engagement meant no dealership truly captured my attention when I was finally ready to commit.
This scenario mirrors a common pitfall I observe among financial advisors. Many engage enthusiastically with prospects initially, offering analyses and plans, but if an immediate commitment isn’t made, the prospect often falls off their radar.
Understanding the customer journey is crucial here, typically characterized by five stages. The first stage is the prospect’s recognition of a financial need or issue. Stage two involves the prospect’s search for information to address this need. In stage three, the prospect compares different financial advisors or solutions. In stage four, the prospect makes the decision to engage a financial service. Finally, in stage five, the consumer evaluates their satisfaction post-engagement.
In my case, the journey was stalled at the decision stage. The inconvenience of the car-buying process initially outweighed the need for a new vehicle. This is akin to the behavior of many financial advisory prospects who may recognize a need and even consider your services but are not yet ready to commit.
This is where a steady stream of communication, such as newsletters or blog posts, plays a pivotal role. By regularly sharing valuable insights and keeping in touch, you remain at the forefront of the prospect’s mind. When they are finally ready to make a decision, your consistent presence positions you as the go-to advisor.
Utilizing a customer relationship management (CRM) system effectively is key to managing this communication. Regular newsletters and blog posts are not just informative; they are reminders of your expertise and approachability. It’s a strategy centered on differentiation and perseverance, ensuring you’re the first thought when a prospect is ready to engage.
Large corporations employ these tactics effectively for growth and client retention. Adopting a similar strategic approach in your financial advisory practice, focusing on consistent, value-driven communication, can significantly increase your chances of converting prospects into clients. In its absence, potential clients may easily be overlooked, leading to missed opportunities and underutilized resources.
The Done With You Model
Our service offers a comprehensive solution for financial advisors seeking to engage their prospects through a well-crafted monthly educational campaign. We understand the importance of consistent and value-driven communication in building relationships and converting prospects into clients. Our team takes on the full responsibility of creating and disseminating these campaigns, allowing advisors to focus on their core business activities.
Comprehensive Content Creation and Distribution
Educational Content Development
We specialize in developing engaging and informative content tailored to the interests and financial needs of your target audience. This content educates prospects, positioning you as a knowledgeable and trusted advisor in your field.
Multi-Channel Distribution
Our approach encompasses various digital channels to maximize reach and engagement. We manage end-to-end email campaign execution, from crafting compelling content to scheduling and sending the emails to your prospect list. We extend the campaign’s reach by sharing the content on your social media platforms, encouraging shares, likes, and comments for broader engagement. We publish the content as blog posts on your professional website, enhancing your site’s value and encouraging longer visits, which is beneficial for both client engagement and SEO.
Tailored to Your Brand and Goals
Personalization
All content is customized to reflect your unique brand voice and the specific services you offer, ensuring that it resonates with your audience and aligns with your business goals.
Engaging and Interactive Content
We incorporate interactive elements like infographics, polls, and surveys to foster active engagement. Clear and compelling calls-to-action are included to encourage responses, such as scheduling consultations or downloading additional resources.
Effortless Execution and Continuous Improvement
Seamless Process
Our team handles all aspects of the campaign, from content creation to distribution, ensuring a seamless and hassle-free experience for you.
Performance Monitoring
We track the performance of each component of the campaign using metrics such as open rates, engagement levels, and website traffic.
Feedback and Optimization
Based on performance data and feedback, we continuously refine the strategy, ensuring the content remains effective, relevant, and aligned with evolving market trends.
Ongoing Support and Strategic Consultation
Regular Updates and Reviews
We provide regular updates and reviews of the campaign’s performance, offering insights and strategic advice for ongoing improvement.
Adaptability
Our team stays up-to-date with the latest financial trends, market changes, and digital marketing strategies, ensuring that the content is always current and impactful.
By partnering with us, financial advisors can leverage the power of content marketing without the added workload. We take care of crafting and disseminating valuable, educational content across multiple platforms so you can focus on what you do best—advising and serving your clients. This comprehensive approach enhances your digital presence and significantly contributes to building lasting relationships with prospects, paving the way for business growth and success.
Question 18: Do You Have a Full-Time Assistant?
The necessity of having a full-time assistant becomes apparent when you envision the day-to-day life of a Fortune 500 CEO. She operates from a luxurious corner office high in a skyscraper, with panoramic views of the cityscape. Her day is meticulously organized, filled with critical decision-making that affects thousands of employees and impacts millions of shareholders. Outside of work, her social calendar is dotted with exclusive events and networking opportunities with influential figures.
Now, imagine if, amidst this high-stakes environment, she were to suddenly engage in menial tasks. Picture her leaving her executive suite to empty her office trash, mop the lobby floors, or even sit in a sales cubicle making cold calls. Imagine her spending hours filing paperwork or managing routine administrative tasks typically handled by support staff. Such a scenario is unthinkable in the corporate world, where CEOs are expected to focus on high-level strategy and decision-making. However, this incongruous situation is a reality for many financial advisors. In their practices, they often find themselves juggling a multitude of tasks, from the menial to the complex. This approach dilutes their effectiveness, preventing them from excelling in the areas where they can add the most value. As the CEO of your financial advisory firm, your time is a precious commodity, potentially worth hundreds of dollars per hour. Engaging in tasks that could be delegated for a fraction of that cost represents a significant misallocation of resources.
Scalability is the ability of a system to handle a growing amount of work efficiently. In the context of a financial advisory practice, scalability involves expanding your client base and managing increased demand without compromising service quality or operational efficiency. Achieving this level of scalability is next to impossible without the right support structure in place.
Consider the CEO of a leading tech company like Google or Intel. They don’t spend their time answering phones or managing their schedules; they have assistants and teams to handle such tasks, allowing them to concentrate on strategic leadership and high-value activities. Embracing the CEO mindset is essential to scale your financial advisory business and become a top-tier advisor. Identify tasks that do not require your expertise and delegate them to competent staff. This could include administrative duties, scheduling, and even some aspects of client communication. Dedicate your time to activities that directly contribute to business growth, such as client relationship building, strategic planning, and developing new business opportunities. Invest in hiring and training a team that can handle operational and administrative tasks efficiently, thereby freeing you up to focus on areas where you can make the most significant impact. Utilize technology and systems that streamline workflow and improve efficiency, allowing you to handle a larger client base without sacrificing service quality.
By adopting this approach, you start treating your financial advisory practice like a serious business. You focus on your core competencies and delegate the rest, paving the way for sustainable growth and success. Remember, you cannot do everything yourself and excel. Focus on what you do best, delegate the rest, and your journey to becoming a leading advisor in the industry will be well underway.
The Done With You Model
Our comprehensive service offers financial advisors a complete suite of resources and support designed to equip them with all the essentials needed for success without the necessity of hiring a large in-house staff. We understand that for many advisors, building and maintaining a vast team can be resource-intensive and sometimes impractical. Our solution is to provide an all-inclusive, outsourced support system that covers every critical aspect of a financial advisory practice.
Complete Suite of Services for Financial Advisors
Analytical Department
We offer a robust analytical department that assists with investment research, market analysis, and portfolio construction. This service ensures that advisors have access to in-depth analysis and insights to make informed investment decisions for their clients.
Financial Planning Department
Our team includes experienced financial planners who help create comprehensive financial plans tailored to the unique needs of each client. This service encompasses retirement planning, wealth management strategies, and other aspects of personal finance.
Tax Compliance and Proactive Tax Planning
We provide specialized support in tax compliance and proactive tax planning. Our experts stay abreast of the latest tax laws and regulations to offer strategic advice, helping clients optimize their tax situations.
Full Administrative Support
To ease the operational burden, we offer full administrative support. This includes client onboarding, documentation, scheduling, and other routine administrative tasks, allowing advisors to focus on client-facing activities and business growth.
Marketing Department
Our marketing services are designed to enhance the visibility and branding of your practice. This includes digital marketing, content creation, social media management, and campaign execution to attract and retain clients effectively.
All-encompassing Success Tools
In addition to these specific departments, we provide a range of tools and resources tailored to the diverse needs of a financial advisory practice. This might include technology solutions for client management, communication tools, and ongoing training and development resources.
Benefits of Partnering with Us
Cost Efficiency
By consolidating multiple services under one umbrella, we offer a cost-effective alternative to hiring a large staff. This approach reduces overhead costs while ensuring access to high-quality resources.
Focus on Core Competencies
With our comprehensive support, advisors can concentrate on their core competencies, such as building client relationships and developing tailored financial strategies.
Scalability and Flexibility
Our services provide the scalability and flexibility needed to grow your practice. As your client base expands, our support system adapts to meet the increasing demands without the need for additional internal staffing.
Expertise and Reliability
We bring a team of experienced professionals in various domains, ensuring that advisors have access to expert advice and support whenever needed.
Continuous Improvement and Adaptation
We stay current with industry trends and regulations, continually updating our services to ensure advisors are always equipped with the most relevant and effective tools for success.
In summary, our service is designed to be a one-stop solution for financial advisors, providing everything needed to build and grow a successful practice. By partnering with us, advisors can streamline their operations, reduce costs, and focus on what they do best – advising clients and growing their business.
Question 19: Do You Have an Institutionalized Process for Managing Your Client’s Investments?
In the world of financial advising, having a structured and efficient process for managing client investments is crucial, yet it’s often overlooked or inconsistently applied. If you’ve been following the advice in this book, you’re aware that the primary roles of a financial advisor are to create and deepen relationships with clients. Any activity that deviates from these core functions detracts from your efficiency and can potentially impact the quality of service you offer.
A common error I’ve observed among many advisors is the tendency to manage each client’s portfolio individually. Picture an advisor with a roster of 150 clients, translating to roughly 450 individual accounts. If each of these accounts is managed distinctly, with unique investment choices and allocations, the advisor faces an overwhelming, time-consuming task. This approach is inefficient and unsustainable. The solution lies in systematizing your investment management process. By developing a set of standardized investment portfolios that align with different risk tolerances—from conservative to aggressive—you can streamline your investment management considerably. Each client can be categorized into one of these pre-defined portfolios, ensuring consistency and reducing the workload involved in managing individual accounts.
For example, when a change is necessary in one of the portfolio models, a single order can be applied across all accounts within that model, significantly saving time and effort. Going a step further, consider the benefits of employing a turnkey asset management platform (TAMP). A TAMP can alleviate the complexities of managing client investments for a high level of professionalism and consistency in your service delivery.
This approach contrasts sharply with the all-too-common practice of managing a diverse array of investments, where any change requires manual adjustments to each client’s account—an inefficient and time-consuming process.
Drawing lessons from Fortune 500 companies, which are adept at creating streamlined processes for repetitive tasks, is invaluable. These corporations understand that efficiency and scalability are key to their success. For instance, it would be unthinkable for a company like Microsoft to send a unique email to each Outlook subscriber or for Uber to have a different onboarding process for each of its millions of drivers. Such inefficiency would hinder their operations and growth.
Adopting this mindset in your financial advisory practice is just as critical. By systematizing your investment management process and categorizing clients into appropriate model portfolios, you can enhance your operational efficiency, allowing you to focus more on relationship-building and strategic tasks.
By treating your financial advisory practice as a serious business and learning from the process-oriented approaches of major companies, you set the stage for scalable growth. Streamlining your investment management processes saves time and positions your business for sustainable expansion and success.
The Done With You Model
Our comprehensive service helps financial advisors streamline and enhance their clients’ asset management. We provide a unique and innovative approach that combines advanced technology with expert management, ensuring advisors can focus on building client relationships while we handle the complexities of asset management.
Key Components of Our Asset Management Systematization Service
Proprietary Risk Assessment Tool
At the heart of our service is a cutting-edge risk assessment tool grounded in behavioral finance. This tool evaluates clients’ risk tolerance, investment preferences, and behavioral traits to accurately place them on a risk continuum. This assessment ensures that clients are matched with an investment portfolio that aligns with their individual risk profile and financial goals.
Customized Investment Portfolios
Based on the outcomes of the risk assessment, clients are allocated to one of our model portfolios. These portfolios are designed to cater to varying levels of risk tolerance, from conservative to aggressive strategies, allowing for a personalized investment experience.
Comprehensive Portfolio Management
Our team takes on the responsibility of managing your clients’ investments. This includes selecting and allocating assets, continuously monitoring portfolio performance, and making adjustments as needed to align with market conditions and client objectives.
Regular Client Reporting
We provide detailed and transparent reporting to clients, keeping them informed about their investment performance and any adjustments made. Our reporting is designed to be clear and comprehensible, enhancing clients’ understanding and confidence in their investment strategies.
Fee Administration
Our service encompasses the management of account fees, ensuring accuracy and transparency in all fee-related processes.
Tax Optimization Strategies
We go beyond standard asset management by optimizing managed accounts for tax efficiency. Our strategies include tax loss harvesting and asset location optimization, which can result in significant tax savings for clients. This approach to tax management aims to enhance the overall efficiency of the portfolio, potentially leading to improved net returns.
Benefits for Financial Advisors
Time and Focus on Client Relations
By entrusting the asset management process to us, advisors can redirect their time and efforts toward client relationship building and business development, areas that are crucial for long-term success.
Increased Client Satisfaction and Trust
Our sophisticated approach to asset management, combined with regular communication and transparency, helps to build trust and satisfaction among clients, fostering stronger advisor-client relationships.
Streamlined Operations
Our service simplifies the investment management process, reducing the workload for advisors and eliminating the need for extensive in-house resources dedicated to these tasks.
By leveraging our comprehensive asset management services, financial advisors are afforded the freedom to concentrate on what truly matters: creating and deepening relationships with their clients. The burdens of intricate portfolio management, client reporting, fee administration, and tax optimization are lifted, allowing advisors to focus their time and energy on understanding their clients’ needs, goals, and aspirations more profoundly. This shift in focus fosters a more client-centric approach, where advisors can nurture stronger, more meaningful relationships. With these operational complexities handled expertly in the background, advisors can dedicate themselves fully to being trusted advisors and confidants to their clients, building a solid foundation for a successful advisory practice.
Question 20: Do You Have a Process for Firing Clients?
The concept of strategically firing clients may seem counterintuitive, especially in a profession focused on client acquisition and growth. However, there is a compelling principle at play here—addition through subtraction. To understand this better, let’s consider an intriguing example from the corporate world.
On June 29, 2007, Sprint made a bold move by sending termination letters to about 1,000 of its customers. These were not just any customers but those who, according to Sprint, were excessively and unreasonably consuming resources. Sprint had observed that this small group of clients repeatedly made support calls, often hundreds of times a month, frequently about issues that had been resolved. This was draining Sprint’s resources and affecting its ability to serve its broader customer base effectively. By deciding to part ways with these high-maintenance customers, Sprint aimed to reallocate resources to enhance service quality for the remaining, more reasonable customers, thereby fostering greater loyalty and reducing overall attrition. This example illustrates a key lesson for financial advisors: the value of focusing on quality over quantity in client relationships.
There are several reasons to consider firing a client in financial advisory. If a client is excessively time-consuming, constantly demands attention beyond reasonable limits, or negatively impacts your ability to serve other clients effectively, they are a liability. Your time, as an advisor, is your most valuable asset, and it should be invested in clients who appreciate and benefit from your expertise, not those who drain it unproductively. Most financial advisors have a threshold for the number of client households they can effectively manage while still providing exceptional service. This number might hover around 150, but it can vary based on your team’s size and capacity. When you reach this threshold, it’s crucial to evaluate your client base. If a new potential client presents an opportunity, it may be time to assess whether all current clients are a good fit for your practice. This is not just about numbers; it’s about maintaining a high standard of service for all clients.
When it becomes necessary to let a client go, consider alternatives like referring them to a junior advisor who has more capacity or is better suited to their needs. If direct termination is the only option, handle it professionally, ensuring that the client is respectfully informed and assisted in transitioning to a new advisor.
The strategy of addition through subtraction is a powerful tool used by successful businesses to enhance their efficiency and service quality. For financial advisors, this means understanding your capacity, defining your service standards, and ensuring that your client base aligns with these parameters. By focusing on quality client relationships, you position your practice for sustainable growth and success. Clearly outline the level of service and commitment you offer and ensure that your clients align with these standards. This clarity helps identify clients who may not be the right fit for your practice.
Continuously assess your capacity to manage client households without compromising on service quality. This involves making tough decisions about client retention and acquisition, ensuring that each client on your roster adds value to your practice. The goal is to nurture relationships with clients who respect your expertise and with whom you can build mutually beneficial partnerships. Quality client relationships lead to higher satisfaction, more referrals, and a more enjoyable work experience.
The Done With You Model
Our coaching program provides financial advisors with strategic guidance on optimizing their client base through the principle of addition through subtraction. This approach focuses on working with the right clients, enhancing the overall quality and efficiency of the advisory service. We understand that not all clients are a good fit for every financial practice, and sometimes, the key to growth is identifying which relationships are beneficial to maintain and which are not.
Key Aspects of Our Coaching on Client Selection
Identifying Ideal Client Profiles
We begin by helping advisors define their ideal client profile. This includes identifying characteristics like financial goals, communication style, responsiveness to advice, and overall compatibility with the advisor’s expertise and service model.
Evaluating Current Client Relationships
Our team assists in conducting a thorough evaluation of the existing client base against the ideal client profile. This process involves assessing the value and satisfaction derived from each relationship, both from the advisor’s and the client’s perspective.
Strategies for Efficient Client Management
We guide advisors in determining the optimal number of clients they can effectively manage without compromising service quality. This helps in making informed decisions about which clients align with the practice’s goals and service standards.
Handling Client Transition with Professionalism
For clients identified as not aligning well with the practice, we provide strategies and communication techniques for transitioning them out in a respectful and professional manner. This might include referrals to other advisors or firms better suited to their needs.
Building and Maintaining a High-Quality Client Base
Our coaching focuses on attracting and retaining clients who fit the ideal profile. This includes marketing techniques, referral strategies, and improving client engagement and satisfaction.
Continuous Support and Reevaluation
We offer ongoing support and advise on periodically reassessing the client base. Client needs and practice dynamics can evolve, and regular evaluation ensures the client base remains aligned with the advisor’s goals.
Benefits for Financial Advisors
Improved Efficiency and Satisfaction
By focusing on clients who are the best fit for the practice, advisors can operate efficiently and derive greater professional satisfaction.
Enhanced Service Quality
A well-curated client base allows advisors to devote more time and resources to each client, leading to improved service and stronger relationships.
Sustainable Growth
This strategic approach to client management fosters a more sustainable, growth-oriented practice where resources are invested in the most mutually beneficial relationships.
Stress Reduction
Reducing the number of challenging client relationships can significantly decrease stress and increase job satisfaction for advisors.
Our goal is to empower financial advisors to build a client base that contributes to the growth of their practice and also aligns with their professional values and goals. By coaching advisors through the process of addition through subtraction, we help create a more focused, efficient, and rewarding practice.
Question 21: Does Your Business Have a Personality?
Having a distinct personality for your business is not just nice to have; it’s a core element of its identity and success. Sir Richard Branson, the visionary behind the Virgin Group, emphasizes the importance of authenticity in business, suggesting that it’s about being true to yourself and your ideas. This philosophy aligns with the concept that if your business lacks a distinct personality, it must develop one that resonates with who you are as a leader.
Business culture, as defined by Wikipedia, encompasses the values and behaviors that shape a company’s unique social and psychological environment. This culture influences how people within the organization interact, approach knowledge creation, respond to changes, and share (or don’t share) knowledge. It’s shaped by various factors, including the company’s history, product type, market, technology, strategy, employee types, management style, and even broader national cultural norms. It manifests in the organization’s vision, values, norms, systems, symbols, language, assumptions, environment, location, beliefs, and habits.
Let’s consider a few examples of companies with distinctive cultures. Sir Richard Branson has been known for challenging the status quo, famously quoted for his casual approach to breaking rules. Google, renowned for its employee-centric culture, prides itself on being unconventional and offers a range of perks like telecommuting, flextime, and on-site services for employees. LinkedIn’s culture, on the other hand, is built around five pillars: Transformation, Integrity, Collaboration, Humor, and Results. These examples illustrate that successful companies can have vastly different cultures, yet all thrive because their cultures are authentic reflections of their leadership and mission.
Your business’s personality, or culture, is crucial for several reasons. To build a loyal and motivated team, you need to hire people who resonate with your vision and culture. A lack of a defined culture or personality in your business can result in a disengaged workforce, high employee turnover, increased training costs, and, ultimately, a decline in customer service and client retention. Clients are often drawn to your business because of its personality and your worldview. Just as Sir Richard Branson attracts a different clientele than Tim Cook of Apple, your business’s unique personality will attract clients who resonate with it. Attempting to change this personality can alienate the very people who contributed to your success.
Once upon a time, there was an RIA that had a visionary, scrappy, work-hard, play-hard leadership team. They embraced their employee base and set out to change the landscape of financial services. This company became hugely successful. They grew mightily for over 10 years until they crashed and burned. The company “jumped the shark” when it brought in the Harvard MBAs in pursuit of faster growth. In their infinite wisdom, the Harvardians put in place a boring, uninspired, non-visionary management team. There was a clash in cultures that drove away employees and clients alike. Nothing destroys a company faster than killing its personality and offending the people who were attracted to it in the first place. Learn from the techniques used by big businesses to scale and achieve massive and sustainable growth.
Your business’s personality is more than just a branding exercise; it is the essence of its identity. Embracing and staying true to your unique culture and being authentic is key to attracting the right employees and clients. This authenticity will guide your business to sustainable growth and success, helping you carve a niche in the competitive landscape of financial services.
The Done With You Model
Our coaching for financial advisors in the SRN (Scale Ready Number) process is meticulously designed to evaluate and enhance every aspect of your business’s scalability. The SRN assesses your readiness for substantial and sustainable growth. Here’s an overview of how we guide advisors through this process:
Comprehensive Review of the 21 Scale Ready Items
We start with a deep dive into each of the 21 items on our Scale Ready list. This extensive list covers all critical areas of your business, from client acquisition and retention strategies to operational efficiency and technological infrastructure.
Individual Assessment for Each Item
For each of the 21 items, we conduct a thorough assessment to determine the current state of that area in your business. We categorize each item into one of three statuses: fully covered, needing development, or requiring minor adjustments.
Customized Strategy Development
Based on this assessment, we develop a customized strategy for each area. If an area is already well-covered, we explore ways to maintain its efficiency. For areas needing development, we create detailed plans to build them out. Minor tweaks are identified for areas that are generally strong but could benefit from refinement.
Implementation Guidance
We provide step-by-step guidance on implementing the strategies for each area. This might include introducing new processes, adopting technological solutions, or restructuring certain aspects of your business operations.
Integration with Overall Business Goals
Our approach ensures that the improvements in each of the 21 areas are aligned with your overall business goals, assuring that the changes contribute to a cohesive growth strategy.
Training and Resource Allocation
We assist in training your team on new systems and processes, ensuring everyone is on board and capable of implementing the changes. We also advise on optimal resource allocation to support these improvements.
Ongoing Monitoring and Fine-Tuning
After the initial implementation, we continue to monitor the progress in each area. We provide ongoing support and adjust as needed, so your business remains agile and responsive to change.
Focus on Scalability and Growth
The core objective of our coaching through the SRN process is to prepare your advisory business for scalable and sustainable growth. We aim to equip you with the tools, knowledge, and processes necessary to expand your business effectively and efficiently.
Through this detailed and supportive coaching process, advisors can transform their practices into scalable, growth-ready enterprises, well-prepared to capitalize on new opportunities and navigate the challenges of expansion.
SRN Case Study
At the dawn of the 2000s, I began collaborating with an innovative custodian that was set to revolutionize the industry. Their value proposition was a game-changer, skillfully integrating cutting-edge technology with custodial and clearing services in unprecedented ways. The potential for this offering to transform my business was immense—it promised to enhance operational efficiency and significantly reduce technology costs and manual labor.
To say this custodian was ahead of their time would be a colossal understatement. They were not just a few steps ahead; they were a whole 15 years ahead of their nearest competitor. In terms of technological advancement, they were unparalleled, clearly outpacing the industry. However, despite their technological prowess, they faced a critical hurdle of being unprepared for the rapid scale of growth that their innovation warranted.
Their groundbreaking approach quickly garnered immediate success, which ironically sowed the seeds of their challenges. The company hadn’t adequately prepared for the scale of their success. Critical systems to support their expanding client base weren’t in place. Marketing strategies to capitalize on the surge of positive PR they received were lacking. Perhaps most detrimentally, they hadn’t assembled the personnel necessary to deliver the level of customer service that their clients deserved.
Had this company scaled more strategically, it could have dominated the industry. Instead of seeing names like Schwab emblazoned on towering skyscrapers, it could have been their brand dominating the skyline. Today, they remain relatively obscure, a shadow of what they might have been. More tragically, they’ve lost the technological edge that once set them apart.
This story serves as a poignant reminder of the critical importance of being prepared for growth. Scaling a business requires more than just vision and innovation; it necessitates careful planning, robust systems, effective marketing, and a strong team. Failure to prepare for expansion is, in many ways, preparing to fail. It’s a lesson in the importance of readiness and the dangers of underestimating the challenges that come with success. As you build and grow your business, remember that scaling effectively is as crucial as the innovation that drives you forward.
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