When you buy a book of business, says Lloyd Williams, an executive coach with lloydwilliamsinc.com in Lunenburg, N.S., retaining those clients is going to take a lot of effort.
Williams recommends keeping only the top third, or the top 100 households, when you buy a book of business — considering that the average book consists of roughly 250 households. You would pass the remaining clients on to another advisor. That means the clients you do keep are valuable, and you need to hold on to as many as possible.
Here are Williams’s tips to retain those top clients when buying a book of business:
> Find similarities
Before you buy a book, make sure you and the exiting advisor have similar personal characteristics.
“Personality is one of the key reasons why clients choose an advisor,” Williams says.
You and the exiting advisor should take a personality test, such as the DISC Profile personality test (www.onlinediscprofile.com) or a Kolbe test (www.kolbe.com), to determine whether you and the selling advisor are similar.
> Ask for an endorsement
Get an introduction from the exiting advisor to help you gain the clients’ trust.
Arrange a meeting between yourself, the exiting advisor and the top clients, says Williams. At the meeting, have the original advisor explain why the client should stay with you.
Make sure you meet in person, he says. If that’s not possible, suggest a meeting over Skype. Suggest a conference call only as a last resort.
> Listen to your clients
Get to know your new clients by listening to their stories.
When meeting clients for the first time, Williams says, don’t start by telling them to take their financial plan in a whole new direction. Instead, build trust by listening to the clients’ stories and discovering what is important to them.
“[Clients] don’t care who you are,” Williams says, “until they know that you care about them.”
> Show you care
Build a relationship with the new clients by putting their goals first.
When you meet a new client, identify a specific tangible goal they want to achieve for the year, Williams says, whether it’s a trip to Italy or buying a cottage.
Make a note of that goal in the client’s file. The next time you or a team member speaks with that client, ask how they are doing with their plans. For example, ask if the client has contacted a real estate agent about the cottage, or if they’ve booked their flight.
The client then realizes that your team works together, he says, and that all of you know who the client is and what’s important to him or her.
> Exceed expectations
Impress your new clients by paying attention to details.
“Go the extra mile in terms of making your clients feel comfortable,” Williams says. For example, you should know your clients’ coffee preferences and have them ready when clients walk into the office.