Client churn a royal pain? Seek a niche

Advisers who want to build their business by developing a niche can start by raising their public profile. How? Blogging, writing articles, going on local news shows and making friends with trade publication reporters

The advice comes from Paul Brunswick, a senior managing principal at consultant and coach CEG Worldwide LLC, speaking at Raymond James Financial Services Inc.’s national conference in Orlando on Monday.

“We are building and enhancing our position to draw people to us,” he said. “Going on TV, or writing articles creates a funnel to get people to be attracted to you.”

Building a niche can help protect advisers against the increasing fickleness of wealthy investors, he said. CEG has tracked investor sentiment for years, and historically about 3% to 5% of clients would say they were considering changing financial advisers in a typical year.

In the past few years, that percentage has grown to almost 80%, said Mr. Brunswick. Wealthy investors are also more likely to spread their assets among two or three advisers.

Developing a niche helps build up a business with clients who are more loyal, and is a good way to gradually increase average account size.

Mr. Brunswick provided some tips on how to do this. For starters, advisers should consider looking at their own communities for concentrated areas of wealth they might be able to serve. Executives with corporations that are undergoing big changes, such as a merger or layoffs, might be a good niche, as are professionals in a field with unique financial issues.

In addition, advisers should get to know relevant centers of influence and look at trade publications covering the industry or profession he or she wants to serve, he said.

“Subscribe to the newsletters of the niche’s associations, examine trade publications and learn the jargon,” said Mr. Brunswick. “Look at your competitor’s websites, and google potential clients.”