Advisory firm PagnatoKarp expands concierge services to smaller clients

It isn’t just ultra-wealthy clients today who have access to concierge services through financial advisory firms.

With competition for clients heating up and pressure on fees, some advisers are reaching down to clients with fewer resources to provide services that go above and beyond financial help, such as arranging limo rides.

Advisory firm PagnatoKarp has always offered concierge services like a discounted car service, a custom gift service, and identify theft protection, to its clients with $10 million or more in investible assets. This month the firm began offering most of these services to clients with $500,000 or more.

“We have scaled a portion of those valuable services for delivery to all of our clients, knowing they too will benefit greatly from our extensive concierge insight and know-how,” said Paul Pagnato, founder of the firm, which advises on about $3 billion in assets.

Thanks to online communications and other technologies, advisers don’t just compete locally for clients, but they compete nationally, against both human and digital rivals. Concierge services can help advisers stand out from the crowd, a report by the CFP Board of Standards said last month.
About 30% of advisers with wealthy clients offer concierge and lifestyle services, according to Cerulli Research’s 2016 U.S. Advisor Metrics report released last month.

(More: Advisers may not feel it yet, but downward fee pressure is coming)

Brad Johnson, Advisors Excel’s vice president of adviser development, said he’s seeing more firms providing concierge services, or what he likes to call personalized services, to distinguish themselves and to help substantiate fees.

“The more services that a client can receive from a single advisory firm, the stickier the client,” Mr. Johnson said.

He advocates for advisory firms to try to create powerful personal interactions with clients.

(More: How advisers can connect with what’s most important in clients’ lives)

For instance, one advisory firm had a grumpy client who mentioned during a visit that he was planning to take a fly-fishing trip. Mr. Johnson said the receptionist at the firm went to the local hardware store and bought a selection of flies and sent them to him with a handwritten note that said, “Hope you catch a big one.”

That experience changed his entire manner and when he enters the advisory office now he gives everyone a hug.

“You don’t have to spend a ton of money to create a concierge-type feeling for clients,” Mr. Johnson said.

Related Topics: Registered Investment Advisers