Be Out In Front Of It
“Stick to fundamentals—blocking and tackling in football, or marketing and servicing in financial planning and portfolio management. There are untold possible ways to reach new clients—broad brush advertising for the long-term name recognition, seminars, radio, television, and print media exposure, social media outreach, or referrals from other professionals and best of all from clients. Whatever your chosen path of marketing and outreach for new clients, don't slow down due to market downturns and prospective reductions in revenues.
Deep declines in difficult markets can initially create a sense of analysis paralysis where investors are hesitant to make a change in advisors. They sometimes want to wait for some of the rebound before making changes. Being planning focused for broader context is helpful to clients in times of turbulence and for your existing clients help them to be more willing to stay the course. Be out front and a resource for both clients and future clients, which will position best to keep existing clients and add new business soon.
We're focusing on increasing our outreach to centers of influence who may be best suited to send us qualified prospects and to whom we are a known quantity with whom they can feel confident sending their client relationships. We are spending some money on seminars, our radio program, and getting in a position to look for acquisitions in troubled times ahead. All that said, the best thing you can do to attract new clients in good times or bad is to create and deliver an outstanding client experience. The better job you do for your existing clients will create good word of mouth which will lead to tomorrow's new clients.”
—J. Christopher Boyd, founder and chief investment officer at Asset Management Resources LLC
Prospect Individuals And Retirement Plan Sponsors
“The ongoing success of our business is based on our ability to provide exceptional service and value to our clients, while still dedicating time and resources to finding new business. While it may seem counterintuitive, an economic downturn can actually provide additional opportunities to attract new clients. A recession or downturn is an occasion for clients to reflect on the service and products they are currently being offered. In many instances these potential clients have not fully vetted their current providers because they were riding an bull market.
By proactively interacting with clients and potential clients during a downturn and re-enforcing your value proposition, you may find additional opportunities. For example, one could prospect Retirement Plan Sponsors as to whether they have recently evaluated their plan fees and investment performance, as a downturn may remind them of their fiduciary duties and spur them to action.”
—Matthew Gallagher, partner and head of business development at TrinityPoint Wealth
Although they might not agree on when this will happen, industry experts believe a down market will come, whether we like it or not. Knowing that, be prepared to answer the questions… What can your business do to be prepared to prosper from the opportunities a recession creates?!