The most important goal among financial advisors, in our experience, is to bring in more assets under management—preferably from wealthier clients.
The good news: Your ability to make that happen is stronger today than it’s been in years, and maybe even decades.
That said, not all actions you get will move you closer to capturing assets from the affluent. Some strategies are simply more effective than others.
Here’s a look at the enormous opportunity that’s in front of you right now—and some key steps that can maximize your success in the coming months and years.
The Opportunity To Attract Lots Of New Affluent Clients
Recent research by CEG Insights reveals that lots of affluent clients today are not getting what they need from their current advisors—to the extent that many clients are actively looking to work with new advisors capable of delivering a much better experience.
Consider these findings:
1. Affluent clients are dissatisfied. 19% of advisors’ clients overall rate their advisors as either “fair” or “poor.”
2. Affluent clients are ready to switch. Currently, 11% of advisors’ clients overall are motivated to replace their primary advisor. Usually it’s around 4% or 5%. What’s more, among the wealthiest clients out there—with $10 million to $25 million in investable assets—22% say they’re motivated to switch advisors.
3. Affluent clients want advisors who consider the whole picture. 26% of affluent clients say they’re either very or somewhat likely to move assets to an advisor who takes the time to do a diagnostic review of their other advisors’ performance.
4. Client referrals are great. 75.5% of financial advisors say that referrals from their clients account for most of their new business.
5. Centers of influence referrals are even better. When asked how they get their best new clients, 70.8% of financial advisors say they were introduced to those clients by COIs—other professionals such as CPAs and attorneys who both work with the affluent and have good relationships with the financial advisors.
Your Value Promise
Clearly, the opportunity is there. But how do you stand out from a crowded field of other advisors? One way is to position yourself with a promise of value that makes you unique in the eyes of the affluent.
For example, some advisors out there truly disappoint their clients—they don’t offer a great experience or even deliver on what they claim to offer.
Then some advisors deliver—they do what they say they will do. That’s nice. But it’s just nothing special.