If you’ve lost any clients, there is good chance communications, or lack thereof, was at least partially responsible. One study found that high-net-worth clients are more concerned with receiving clear, timely communication than with investment performance.
Client relationships built around strong communications are more likely to survive adverse market conditions. The key to effective communications is insight. It should be relevant, timely, and when possible, personalized. Equally important, it should be delivered based on your clients’ preferences for communication, whether verbally, by text or email, through social media, or some combination. Investors also like the reassurance that their advisor is a pro when he or she is featured in the news media.
Narrow Your Focus
Kudos to you if you are willing to boost your marketing efforts. However, this is not a time to cast a wider net to find new clients. By doing so, you become less differentiated, less unique, and to the clients you really want to attract, less appealing. A wider net may pull in more prospects, but it won’t result in more clients and it will cost you more in valuable time and resources to cull through a higher number of prospects to find the few clients you want to work with.
Instead, narrow your focus to match your strengths to the group of prospects who are looking for those strengths. The time you save on meeting with unqualified prospects can be spent winning over the clients you really want. Think about why current clients came to you and what problems you are solving? Sharpen your message to differentiate yourself further in your niche.
Get Proactive With Your Clients Pros
While most advisors gladly accept referrals, many don’t proactively pursue them, choosing instead a more passive approach. Because the passive approach (waiting until someone offers a referral) doesn’t do much for organic growth, many advisors don’t and shouldn’t rely on them. However, advisors with a proactive strategy tend to find their best clients through referrals. The key is making yourself more referable by truly differentiating yourself and delivering on your value proposition with your clients.
Advisors who have the most success with referral marketing work primarily with their clients’ other advisors—attorney, accountant or insurance agent—to develop them as key centers-of-influence. Not surprisingly, with so many clients on the move, these centers-of-influence are interested in helping their clients find a home. Consider spending some time during these challenging times asking some clients for introductions to the other professionals they respect the most.
Dan Sondhelm is CEO of Sondhelm Partners, a firm that helps asset managers, mutual funds, ETFs, wealth managers and fintech companies grow through marketing, public relations and sales programs. Click to read Dan’s latest Insight articles and to schedule a complimentary consultation.