3 Types of Clients You Should Want to Attract and Retain

3 Types of Clients You Should Want to Attract and RetainIt’s surprising to find that certain broad sectors of the population still remain underserved in certain instances.

If you, unlike other advisors, can devise a strategy to attract and retain these potentially valuable clients, you could vastly improve your business.

Let’s have a look at three types of clients you should try to attract and retain.

Get the ‘12 Prospecting Ideas for Financial Advisors’ mp3 compilation – a compilation of tracks that generated the most positive feedback from our subscribers on the topic of prospecting.

#1. Small business owners

As the saying goes “the money is in the small business market” and small business owners could make a great addition to your client base. As potential clients they often slip through the net because they tend not to actively seek financial advice. Running a small business is an all-encompassing pursuit – plus the majority of their money is probably tied up in the business, so there’s often a gap in their personal financial plans, especially when it comes to retirement.

Given that small business owners are unlikely to seek you out – seldom attending seminars and so on, it’s your job to be proactive and go out to meet them – at their premises.

Pick a quiet time of day to pop in and introduce yourself. Find out about their business and listen to their success stories. Then ask whether they’ve put into place any retirement plans. If they haven’t, this could set off alarm bells and lay the foundations for further discussion.

#2. Female clients

With women predicted to control two thirds of private wealth in the next few years it should be every advisor’s goal to know how to attract and retain female clients. However, women often represent a smaller proportion of investment clients in many practices, despite the fact they hold significant assets – and tend to have a longer investing horizons (live longer).

According to ‘What women want from a Financial Advisor’ men and women may have a different approach to decision-making, women tending to spend more time asking peers or looking at many more options. But once onboard they are more likely to stay on as long-term clients – and they are also twice as likely to refer you.

Some women report that they feel intimidated by the investment process – so, in order to attract more female clients, it could be worth considering their need for information and education. Maybe hold investment education seminars or write a blog covering basic financial issues.

For ideas on stories and phrases you can use with clients when explaining investing in terms they can understand, get the ‘Simple Truths for Investors’ mp3.

#3. Widows

A report by Fidelity a few years ago revealed that when couples interact with a financial advisor the male partner is still more likely to be the primary contact. This could explain in part, why when their husbands die widows often fire their current advisors. In fact an estimated 70% of women leave within a year of their husband’s death. Reasons for leaving include feeling as though the advisor didn’t ‘get them’, and ‘didn’t understand their grief process’.

Make it your aim to always include both husband and wife in financial discussions. Stress the importance for both to have a clear idea of their investments – in case of the demise of either one.

In the event of the husband’s death understand how to build a relationship with the surviving partner. Bear in mind that when you first meet with the bereaved, beating the market will be the last thing on their mind. Your client simply wants reassurance that she will be OK financially – or be able to help get the grandkids through college.

Don’t introduce charts or use jargon – simply talk about needs and goals. Given that women often leave the financial side of things to their partners, the world of investment could be a completely new and confusing concept.

Be like elite advisors and offer to help in whatever way you can – some advisors accompany their widowed clients to attorney meetings or help to settle the estate. Whatever you do, don’t use clichés. Show compassion and connect with your client – and there’s every chance they will choose to stay with you.

Even though traditional Advisor training focuses far too much on technical information & product knowledge, it is the mastery of soft skills that will carry you to the next level. Hone your soft skills for stronger relationships – get the ‘Mastering Client Relationships: What Elite Advisors Do’ mp3 compilation. 

If you can tailor your approach to clients in all walks of life and at all stages, you will succeed where others don’t. By being proactive in addressing the needs of people who, without realizing it – are in dire need of good financial advice – you’ll be doing both them and yourself a big favor.

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