Outside-IN

Outside-INblog

Outside voices and views for advisers

Let hard data, not gut instinct, define your ideal client profile

Here are five simple ways to transform information into business-boosting action

Oct 18, 2017 @ 3:01 pm

By John Capuano

In an industry based on facts and figures, why is it that financial advisers base most, if not all their marketing data on "gut instinct"?

When asked about a profile of their core client, they rarely base their answers on facts, thinking about their Ideal Client Profile in ways that make them feel good. For example: "My average case is $1,000,000 in assets", "we have close to 100% wallet share", or "we close 75% of the people that walk in the door."

Let data be your guide when it comes to efficiently pinpointing your best prospects. For the same reasons advisers don't want human emotions to cloud investment decisions, emotions shouldn't dictate their sales and marketing decisions.

Here are five things you can do to be a better student of your Ideal Client Profile:

GOOGLE ANALYTICS

If you've ever wondered how people "follow you" after they've been to a seminar, met you at a party, heard you on a broadcast news segment, or were referred to you by a friend, it's easy to find out.

(More: Deleting your social media is a bad idea.)

Your website is your Virtual Storefront, and it's how people engage with you. Take 15 minutes to learn the basics of Google Analytics and you can learn everything you need to know about how people are truly engaging with you. You can learn when people visit your site, where they live, what pages they visit, how long they spend on your site.

CLIENT SURVEYS

Chances are there are about five essential things to know about what your clients and prospects think. There are plenty of studies that show people like offering their opinion as long as it's easy. Polling online the people you work with (or want to work with) shows them that you care, helps them have a better client experience, and be honest.

You can execute a survey easily and affordably on platforms like Constant Contact or Mail Chimp. It is a great way to find out timely things like: "On a scale from 1-10 how confident are you in today's market?" or "What are the five biggest factors in selecting an adviser?" Surveys can be done on a regular basis, weekly or monthly.

80-20 RULE

Almost every industry generates 80% of its revenue from 20% of its clients. Understanding where the bulk of the revenue comes from, as well as the client profiles that make it up should be a top priority for every adviser.

To find the "80-20": Start with knowing your total revenue in the past year. Create a list of revenue generated by each client starting with the biggest to the smallest. Add from the top down until you get to 80% of your total revenue.

The revenue generated from your smallest client among the top 80% will be your benchmark for all key clients. Now you could better examine the traits of your key clients. Where do they live? What is their occupation? What do they like to do for fun?

CLIENT ADVISORY BOARD

Now that you know your key accounts, create a program to more thoughtfully engage with them. Each month invite a handful of top clients to a group dinner to ask them questions about how they feel about things that can help you all. Special guests can present.

(More: Creating client events with a 'wow.')

The topics could vary and include things like: What are their true attitudes toward risk? Do they have a succession/wealth transfer plan? How do they incorporate the digital age with their financial communication? What do they consider to be great service?

MODELING

If you haven't noticed, the internet knows everything about you. The names and addresses of your best clients could be the doorway to deeper patterns that exist within your Ideal Client Profiles. Based on just a postal address the worldwide web can analyze the consumer behavior of your top clients against hundreds of data points.

You can find out granular traits among your best targets like: Where do they shop? Do they own dogs? Where do they live? Are certain demographics more predisposed? Where do they like to vacation? What are their media habits? This information could be extremely valuable when it comes to creating your next big marketing initiative.

John Capuano is the founder of Lone Beacon.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Upcoming Event

May 30

Conference

Adviser Compensation & Staffing Workshop

The InvestmentNews Research team will present exclusive data and highlights from its bellwether benchmarking study that will identify best practices for setting and structuring compensation and benefits packages throughout your... Learn more

Featured video

INTV

Children of AI, and when they are coming to financial advice

Technology reporter Ryan Neal talks about the tremendous progress in artificial intelligence in other industries, and how its applications are slowly making headway in the advice sector.

Latest news & opinion

Brokers accept proposed SEC rule on who can call themselves an adviser

Some say the rule will clear up investor confusion, but others say the SEC didn't go far enough.

SEC advice rule: Here's what you need to know

We sifted through the nearly 1,000-page proposal and picked out some of the most important points.

Cadaret Grant acquired by private-equity-backed Atria

75-year-old owner Arthur Grant positions the IBD for the 'next 33 years.'

SEC advice rule seeks to tighten reins on brokers

The proposed rule puts new restrictions on brokers, but it is still unclear how strongly the SEC is clamping down.

SEC advice rule hearing updates

Commission says a lot of work ahead, public will have 90 days to comment.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print