Follow the lead of top performing firms to boost business development

Creating a marketing plan and having a consistent story are good starting points for most advisers, Fidelity survey finds.

The vast majority of financial advisers are not very confident about their ability to bring in new clients.
Only 5% of registered investment advisers said they feel their firms are “advanced” when it comes to marketing and new business efforts, according to a Fidelity RIA benchmarking survey released Wednesday. About 411 advisers completed the online survey in May and June.
Most advisers said they see improving business development as a top strategic initiative but they aren’t sure what to do, said David Canter, Fidelity Institutional Wealth Services’ executive vice president and head of practice management and consulting.
(More: 5 business development traits of top firms)
“Advisers want to grow their business and most want to do it organically,” Mr. Canter said. “But it takes effort and skills and it can be a one-client-at-a-time exercise.”
Creating a written marketing and business development plan — something only 31% of advisers said they have — is a good start, Mr. Canter said.
Advisers also should look to peers whose businesses are growing well for ideas on what makes the most impact, he said. The top-performing quartile of firms in the Fidelity survey increase assets about 17% a year, he said.
The top performers surveyed were more likely to have a consistent firm story, a target client base and a formal process for encouraging and handling referrals, which continues to be the way advisers get the majority of their clients, the survey found.
(More: Most advisory firms don’t have a strategy for landing client referrals)
High performing firms also have professionals throughout the firm who can be relied on for their sales and marketing skills and have compensation plans in place that incentivize client acquisition, Mr. Canter said.
Perhaps surprisingly, high performers are less likely to hire a separate business development officer because they have processes in place that support business development throughout the organization as opposed to having goals set with only one or a small number of individuals, he said.
Also, about a third of RIAs have a business development officer, according to the survey.