Although establishing a list of people who may become prospects is a good idea, converting these “suspects” to prospects and then to clients can be challenging. That’s even more true now than in the past, given the rising competition among financial advisors.

The challenge is even greater if you are reaching out to people who have reservations about the services you offer. They may even be wary of the financial services industry as a whole, says Jonathan Sceeles, team leader of financial advisor development at Edward Jones in Mississauga, Ont.

Converting suspects to prospects, advises George Hartman, CEO of Toronto-based Market Logics Inc., requires “a disciplined process that gradually deepens and strengthens your relationship with suspects.”

Typically, it is not unusual for advisors to consider each suspect as a prospect – even though all suspects are not necessarily prospects. “Each suspect is normally viewed as a potential prospect who must be qualified before becoming a real prospect,” says Prem Malik, chartered accountant and financial advisor with Queensbury Securities Inc. in Toronto. “As a result, you may find that some suspects do not meet your qualification criteria and are not worth pursuing.”

High-quality suspects, Hartman suggests, “should normally come from your target market and meet your preferred client profile.” That’s because you will be better prepared to deal with suspects whose objectives are aligned with the products and services you have to offer. Consequently, the activities you engage in to attract your suspects must be consistent with the way your target market likes to be approached.

Here are some ways to help convert suspects to prospects:

INITIATE CONTACT

You can use different methods, including personalized letters, telephone calls or email to contact suspects. Malik advises that mass-market mailings should never be used because they are too impersonal. However, it’s important to get permission to make individual contact.

Sceeles cautions: “You should get each individual’s express permission before contacting them; in some cases, they might have unknowingly given you their permission and may be surprised to hear from you.”

During the initial contact, make sure you explain your value proposition to suspects. That includes how you can help these suspects achieve their financial objectives, bearing in mind that these people also are being approached by your competitors, says Raymond Yates, financial advisor and senior partner at Save Right Financial Inc. in Mississauga: “Finish off by telling them that you will be in touch on a specific date, which gives you an opening to follow up.”

ASK FOR A MEETING

Invite suspects to a face-to-face meeting at a mutually convenient time and place. Don’t be afraid to ask for the appointment. This is the time to establish rapport and credibility, as well as earn the confidence of the suspect, says Malik, who adds: “The meeting is your best chance to [persuade] the suspect to become a client.”

During the meeting, talk about “the big picture,” Hartman suggests. “Tell them about your values and share your experiences about clients in similar situations.”

In some cases, establishing rapport may require several meetings.

IDENTIFY PROSPECTS

After you’ve made contact with your suspects, you should be able to come up with a list of those who meet your preferred client profile. This list can be sorted by short- and long-term prospects and by individuals who need followup.

You will find that some suspects are not ready to be engaged, whereas others might need to be fast-tracked or eliminated at this stage.

Essentially, suspects can be classified as “hot,” “warm” or “cold” or, as Yates calls them: A, B and C leads who can take a few weeks or several months to be converted.

(It can take six months or more to convert some suspects to prospects, advises Sceeles.)

Yates says A-list prospects typically need little work for conversion and B-list prospects require some followup; while C-list suspects are “maybes.”

KEEP THE LINES OF COMMUNICATION OPEN

You will have to keep the lines of communication open for those prospects who cannot be converted after your initial meeting. “Continue to communicate with them periodically by mail or email, without harassing them,” suggests Sceeles. Offering them ideas appropriate to their needs and letting them know you are still available, he says, might “strike a chord,” leading them to seek your services.

Yates says that unless your prospects advise you not to, you should continue to send them newsletters, articles of interest and invitations to special events.

SAY “THANK YOU”

In all cases, send a personal thank-you letter after each meeting. Tell your prospects how much you enjoyed meeting with them and that you look forward to serving them sometime in the near future, suggests Malik: “Advise them that they can call you with any questions and that you would like to stay in touch.”

© 2012 Investment Executive. All rights reserved.