According to Cerulli Associates, a Boston-based research firm specializing in global asset management and distribution analytics, the total number of financial advisors throughout distribution channels in the United States declined to 307,623 in 2012, down 4.4% since 2010. In other words, there is an increasing competition on winning new clients. But how can financial advisors gain additional clients for themselves or the company they are working for?
Never Condescend Clients. This is a big no-no in the industry. Clients want to be treated as equals, so give them that. An individual can detect when an advisor is talking down to them or evading the details. Using wrong words can give the wrong effect or make the wrong impact. Some examples of appropriate word choices include "asset allocation", "controlling expenses", and "diversification", which can help a client comprehend the investing method being employed. Avoid using vague terms like alternatives in order not to confuse investors.
Specifically, millennial investors do not need to see too many figures when an advisor is outlining investment choices. And they do not want an old school schmoozing, too. Be direct with clients and answer questions in a straightforward manner.
Give a Realistic and Feasible Offer. Financial advisors need to be precise about what they can offer to their clients. People are not much interested in a sales pitch, but more engrossed in knowing exactly what an advisor can do for and the services they can provide to them. Understanding the specific needs of their potential clients may help advisors determine how they will be able to fulfill those needs. They can also create their own client advisory councils within their entities and ask clients to give a detailed feedback on their business ethics.
Be Available All the Time. Nowadays, investors also want to access their portfolios whenever they feel doing so. It is a must for financial advisors to make themselves available all the time. Be proactive on alerting clients when changes in the economy, the markets, or government could greatly impact their portfolio. Explain also how such changes may affect their investment decisions.
Explain Your Fees. Investors today want to grasp how and when a financial advisor they are seeking to work with is being paid. Therefore, advisors should be transparent about the fee they charge and in explaining the breakdown of the fees. They can post their charges on their companies’ websites. That way, any potential clients can thoroughly review these fees and ask questions afterwards.
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