Financial advisors all look pretty much the same to clients, says Stephen Wershing, president of The Client Driven Practice in Rochester, N.Y.
Clients have difficulty picking one advisor over another because most advisors appear competent and come with referrals. To stand apart from the pack, Wershing says, you need to know how to answer the key question, “Why should I hire you?”
Here are four ways to show clients that you are the right choice:
1. Provide a unique solution
One way to position yourself as unique is to understand your target market and figure out what you can do to solve your potential clients’ unique needs. Ask yourself what ties these clients together as a group, yet also what makes them distinct from the rest of the population.
“If you can speak directly to that,” Wershing says, “then it’s a powerful reason for the client to do business with you.”
For example, if you’re working with high-placed corporate executives, they will need retirement plans and investment management, just like everybody else. But they also may require advice on employer securities, stock options and negotiating complicated employment contracts. You can provide an added value by developing knowledge and skills in these areas.
2. Deliver an experience
As a financial advisor, Wershing says, you can offer a client a solution to a specific set of problems or an experience. Developing the expertise to provide a solution can be powerful. But so is offering a unique experience — which can mean working in a particular setting or using a distinctive method of interaction.
For example, you can design an experience for millennial clients in which the majority of communication is electronic and the financial plan is laid out in a “bite sized” format rather than a traditional, lengthy plan.
3. Explain your process
Another way to start building trust and rapport with prospective clients is to inform them of your process. That way, you’ll confirm whether your services are what your clients truly need.
Wershing recommends a “process graphic,” which is a visual representation of an approximate timeline and the deliverables that your client will receive along the way.
For example, the graphic might explain that you’ll first meet to discuss goals, meet again for a preliminary presentation of their financial plan, and then meet a third time for a final presentation of your client’s financial plan.
4. Offer alternative fee arrangements
One common obstacle among clients is that many advisors are compensated based on assets under management. That means that in order to start a relationship, a client would have to move all (or a significant portion) of his or her assets over to the new advisor.
To offset this hurdle, Wershing suggests, you can provide different fee engagements. For example, you might charge a fee for the preparation of a financial plan or for a particular kind of analysis.
“This lowers the barriers to becoming a client,” Wershing says. Clients will not have to make a full commitment in order to start working with you. And once you have built a relationship, obtaining assets later will be easier.