Successful advisors continually prospect for new clients to drive the organic growth of their practices, according to Nationwide, and to accelerate that growth, are open to targeting next-generation clients and heirs with enhanced client experiences.
In the Advisor Authority study, all advisors, successful and otherwise, named adding new clients as the top driver of firm growth, followed by the targeting of high-net-worth clients and the addition of new technology. Successful advisors in the study differentiated themselves by being much more willing than other advisors to prioritize the addition of new hires and the consolidation of technology. They were also more likely to change strategies—or business models—to attract the next generation of investors.
No. 6: Successful advisors are bullish on mergers and acquisitions.
The most successful advisors embrace the M&A trend as they look for new ways to benefit their clients and grow their business.
Nationwide found that successful advisors were more likely to think that M&A activity will increase in the future and were more likely to think positively about the impacts of M&A and industry consolidation. Larger proportions of successful advisors thought consolidation could provide greater resources to serve clients and expand businesses, allow them to take advantage of more technology and increase opportunities to buy other practices.
No. 7: Successful advisors protect their clients.
According to Nationwide, a successful advisor will be able to recommend risk-management strategies to clients to protect them against market volatility and the possibility of outliving their savings, acting as “safe havens in an uncertain world.”
In the Advisor Authority study, successful advisors were marginally more likely to have strategies in place to protect their clients from market risk. They were also more likely to use product-driven solutions to mitigate risk, solutions such as diversification, fixed annuities, liquid alternatives, smart beta ETFs and other non-correlated assets.