This case study is based on the situation of a client of the Covenant Group. Names and details have been changed to preserve client privacy.

The outcome of good practice management should be the ability of an advisor to have greater control over the momentum of his or her business. There are a number of financial “levers” that can be pushed and pulled to change the velocity of the business to a more desirable speed.

One of those levers is average size of sale. An obvious way to enhance productivity is to increase the typical dollar amount each new client contributes to his or her investment account or the average annual premium they commit to their insurance program. This was the discussion I was having with Jake Davidson, a recent graduate of our Eight Best Practices of High-Performing Advisors program.

“Yeah, I know that,” Jake conceded. “We spent quite a bit of time on financial levers in the program. But I have to admit that I haven’t really implemented that concept as I wanted to.”

“That’s OK, Jake,” I responded. “There were a lot of new ideas that you did implement over the past year, and they have had great impact. I never expected you to do everything right the first time around. In fact, our research shows that while we almost always see some immediate and significant benefits from our work together, it often takes somewhere between 12 and 18 months for many of the changes people make in their businesses really to take hold and have an effect.

“However, that being said,” I added, “it is time for you to apply more of what you learned in a very real way. It is past time to turn theory into action.”

“You have my attention,” Jake said, “particularly in this area of increasing my average size of sale. I really want to make that happen. What’s the quickest way?”

“Hopefully,” I answered, “you recall that average size of sale is most frequently a function of your market. Unless there has been something significantly amiss with your discovery and recommendations process, it is likely that your average sale size reflects the needs and abilities of your current clientele. They are making investments and buying insurance pretty much in line with their economic circumstances. Therefore, if you want to increase your average size of sale, you must look for a new market with greater financial capabilities. Would you agree?”

“I would,” Jake replied. “I know I don’t have 100% share of wallet with all clients, but I do believe I have the majority of their business. That’s why, in my business plan, I identified senior executives and owners in small to medium-sized businesses as a definitive target market over the next 12 months. I feel they will have the need and capacity for higher-level advice and products.”

“OK, good,” I went on. “Now, just as a reality check, do you recall the key requirements for a bona fide target market?”

“I think they had to be specifically identifiable, have contact among themselves, be of sufficient numbers to justify the effort and, most important, be approachable by me.”

“A gold star for the student!” I congratulated Jake. “And your target market of owners and executives measures up on all counts. You can easily determine who they are because they are part of the city in which you live and work and you either know who they are or can obtain that information through sources such as business directories.

“They communicate with each other through their business-to-business dealings, at service clubs, Better Business Bureau meetings, local business publications and the like,” I continued. “There is a large, vibrant business community locally and, finally, you certainly have the credentials and social skills to relate to them effectively.

“All you need now is the right way to approach them to capture their interest in what you have to offer. Your skill as a professional advisor will do the rest.”

“Sounds pretty straightforward,” Jake conceded, “But, clearly, it isn’t that simple or everyone would be doing it.”

“Straightforward, yes; simple, no,” I agreed. “Because the target market you have described is also attractive to many other advisors, those owners and executives are being approached all the time and some of them have gotten pretty good at fending off any new overtures. To be successful, you must get them to pay attention to you in a way they might not to others. Any thoughts on how to do that?”

@page_break@“I am sure it would have to be something personal and specialized, something that appeals to them because it is specific to their needs as owners and senior executives,” Jake answered. “These people probably won’t react to any broad-based marketing campaign; they probably wouldn’t come to a seminar.”

“Nor would you want them to,” I said. “What you are after with a market like this is something more intimate. First of all, assuming they have achieved their success through their own efforts, they do not want to be treated like everyone else. They want to be recognized for their accomplishments. Second, they like to feel they are part of an elite group of people who have ‘insider’ access. In fact, if they could, they would prefer to do business almost exclusively within their own ‘inner circle.’ I know these are broad generalizations that don’t apply to all business owners and executives. It does, however, give us a clue as to what might be the most successful way to approach them.”

“Whoa, it is so obvious. I am embarrassed I didn’t see it right away!” Jake exclaimed. “If I want to target a particular business owner, I need to find someone within their inner circle and obtain a personal introduction!”

“Another gold star!” I joked. “This is where you can start to get real, so to speak, with your marketing activities. Let’s walk through the steps. As with all marketing activities, we begin with your ideal…”

“…client profile,” Jake completed my sentence. “For example, in the case of business owners, I need to spell out the demographics — years in business, revenue, number of employees, industry, etc. — as well as psychographic characteristics, including values, attitudes, reputation and such of my ideal client. Step 1 would be to identify specific companies that meet or come closest to that profile.

“That part’s easy. But I still need a way to meet them one on one.”

“OK, let’s explore that,” I suggested. “Off the top of your head, name one company you already know that you think will pretty much qualify as an ideal client.”

Jake didn’t hesitate: “ACE Electric immediately comes to mind. It’s a well-established, successful, highly regarded family business in town owned by Gerry Waterman, who is himself well known and well liked around here.”

“And what has prevented you from approaching Gerry in the past?” I asked.

“I don’t know,” Jake replied. “I guess I felt he was probably out of my league because he has such a high profile.”

I posed the question: “Do you feel that you are not qualified to deal with Gerry?”

“There was a time, earlier in my career,” Jake admitted, “when I felt that way, but not anymore. I can hold my own with the best of them now.”

“No doubt about that, Jake,” I agreed. “And if you could get a strong introduction to him, I know the chances are favourable that you would have something valuable to offer him. So, all you have to do is get that introduction. Who do you know who knows Gerry?”

“Everyone knows Gerry,” Jake offered before I interrupted: “Yes, but who do you know who knows Gerry?”

“Some of my clients do,” Jake volunteered. “I know at least two of them who have contracted his company to do work for them on large-scale projects.”

“So that’s Step 2,” I said. “Make a list of everyone you know who you think knows Gerry and might be willing to introduce you. Start with your top 20 clients and centres of influence because they already have the highest regard for you.

“Next, decide what you are going to say to them in asking for their help. You are good at asking for introductions generally; now it’s time to be more specific — tell them you want to meet Gerry and ask their guidance as to the best way to do that. That’s Step 3. My guess is that you won’t have to ask too many of your best clients before one of them will offer to make the introduction themselves.”

“I can do that,” Jake replied eagerly.

“I know you can,” I responded. “You are progressing from a ‘shotgun’ to a ‘rifle’ approach to marketing. And if you repeat the process several times through the rest of the year, I am confident you’ll see the size of your average sale increase to what you want.” IE

George Hartman is a coach and facilitator with the Covenant Group in Toronto. He can be reached at george@covenantgroup.com.