Many advisors think growing their business means attracting new clients. However, a more powerful source of growth may exist within you roster of clients you already have, says Sara Gilbert, founder of Strategist Business Development in Montreal.
By focusing on your existing clients, she says, you demonstrate your appreciation of those relationships, and create opportunities to gain further assets.
Here are three ways to get more from your existing client base:
> Be the trusted advisor
Many clients, especially high net-worth individuals, choose to have more than one advisor looking after their finances. You have the power to change that arrangement with some effort and patience.
By offering to provide your clients with a global view of their finances, you will become their “trusted advisor.” That title belongs to someone who acts as the “quarterback” for the clients’ financial team by working with the other professionals — such as investment advisors, lawyers and accountants — and ensuring the client’s overall plan is in place.
This strategy does not mean you make an automatic play for those outside assets. Instead, position this extra attention as a way to help your clients. While they may initially choose to keep their multiple-advisor team, the information about their portfolio and your willingness to work with others will take your relationship to a higher level.
> Provide extra services
While some clients are happy to have more than one advisor, one particular group of clients is looking to minimize the number of appointments they must make with various professionals.
“Baby boomers are entering a phase of consolidation and simplification of their lives,” Gilbert says.
You can appeal to boomers by integrating services such as insurance and estate planning into your practice. This step has the potential to bring in additional assets through your existing clients as well as through referrals.
“There is nothing better than an existing client becoming a raving fan of yours,” Gilbert says. “He will become an advocate for your business.”
> Develop relationships with spouses and children
Almost three-quarters of widows will change advisors upon the death of their spouse, says Gilbert. They leave because they don’t have a relationship with the existing advisor.
By encouraging married couples to attend meetings together and communicating with both, you can develop more coherent financial and retirement plans based on an understanding of both sets of needs and goals. Another advantage is that you will be developing both spouses’ loyalty toward you and reducing the possibility that one will move to another advisor should one spouse die.
To ensure your practice will continue beyond one generation, you should also be working to develop a rapport with clients’ children. Talk to clients about the importance of financial literacy and offer to speak with their adult children about the topic as well as concerns the children may have about saving and investing.
“More and more clients are passing along their wealth while they’re still alive,” Gilbert says. “If you don’t have a relationship with the spouse or with the children, that money’s gone.”