Increasing your share of wallet of existing clients can lead to greater profitability for your practice. Your average per-client revenue will go up, while your average per-client costs will drop, resulting in a net increase in your bottom line.
But to increase your share of wallet you must offer clients access to a comprehensive range of products and services from which they can choose, says Yvonne Jodhan, marketing consultant with Alternative Asset Research Inc. in Toronto.
Your existing clients are like “low- hanging fruit,” she says. “You already have access to them, making it easier for you to pitch products and services they do not currently use, or that they might have with other advisors.”
By getting your clients to use more of the products and services you offer, you make your relationship with them stronger, Jodhan says. And the chances of them leaving you for another advisor will be lower — as long as you serve them well.
Here are some tips to help you increase your share of wallet:
> Offer a complete menu of services
Offer your clients a comprehensive suite of products and services, even if it means forming alliances with other providers through referral arrangements.
“You want to wrap around clients so that they don’t have to look to other advisors to meet their needs,” Jodhan says. Take a holistic approach to assessing their needs to ensure that you cover all the bases — ranging from investments and insurance to mortgages, cash management, and tax and estate planning. “You don’t want to leave any gaps,” Jodhan says.
> Focus on client reviews
Use client review meetings to identify areas in which there is room to increase the services you provide for each client.
For example, a client might tell you that he or she is planning to buy a new home or send a child to university. “Use what you learn from your conversation to show how you can help to meet their objectives,” Jodhan says.
You might also be able to identify a need for additional insurance, to update their will or to create an estate plan.
“You should not necessarily push products in these circumstances,” Jodhan says, “but provide information for them to think about so that they can turn to you for advice.”
> Promote what you provide
Your clients should be aware of all the products and services you offer. “Subtly remind them through your communication initiatives about specific services,” Jodhan says. “You might be surprised about how often clients say, ‘I didn’t know you also offered that’.”
Offering a range of products not only can increase share of wallet but also can prevent clients from becoming targets of competitors.
> Make clients aware of the benefits
Explain to your clients why they are better off using a single advisor for all their financial products and services, Jodhan says. For example, show them how keeping all their investments in one place makes for more efficient asset allocation and easier tax planning.
You also can explain that it is easier to review a single statement than to review several statements from various providers.
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