Who’s your ideal client?

Once the dust has settled, look at whom you previously identified as your ideal client and ask yourself three questions: Is this the type of person I want to serve? Is it the type of client I am currently serving? Is this one of my best clients?

“Compare [the original profile] with the best clients you have right now,” says Gilbert. “[Identify] the ones you have the most fun with, the ones that are challenging you in a good way.”

It’s also a good idea to think a little more clinically when assessing your current ideal profile. Consider how profitable your current ideal client really is, says Larry Distillio, director of financial advisor business management with Mackenzie Financial Corp. in Toronto. Think about the cost of the relationship and the revenue it generates, and consider whether the profitability of the relationship tends to grow over time. Also, reflect on how often this client provides referrals.

If you find your ideal client profile needs some tweaking, start putting together a list of criteria of the clients you would prefer to serve. Sylvia Garibaldi, founder of SG & Associates in Toronto, recommends looking at your client database to identify common characteristics of clients you serve well.

These criteria could be any number of things, says Garibaldi, from profession, age and geography to assets under management and personality attributes. “The advisor has to define what are the most important characteristics to [him or her],” she says.

You may identify more than one ideal client profile, which is perfectly fine. Garibaldi recommends focusing on a couple of different niche groups. Says Garibaldi: “You don’t have to just put all your eggs in one basket.”

Don’t put that list back in a drawer once you’ve identified your criteria. Instead, use it regularly as a checklist to make sure you are bringing in prospects that fit the ideal client profile. For example, each time you meet with a prospect, put his or her name in a spreadsheet and determine whether that prospect fits within your set criteria.

“The only way to stay focused is to keep [the list] visible,” says Gilbert. “That’s how you keep that momentum.”

Another way to keep your database in line with your ideal client profile is by establishing a process for re-segmenting clients on a regular basis. After your annual review meeting with clients, for instance, Distillio suggests spending roughly five minutes deciding whether they still meet your ‘A’ client criteria or if they are ‘B’ or ‘C’ clients who now need a higher level of service and attention.

If a client does not fit into one of your niche groups and is not profitable to your business, it may be best to end that relationship. If that’s the case, make sure you have resources and recommendations ready for the client, such as a new financial advisor they could contact.

This is the first article in a three-part series on refocusing your business in 2015.

Next: Refocusing your service.