When asked to describe what they’d done to support the growth of their business, only a fifth of advisers said they had developed clear and defined profiles for the types of clients they want to attract to their proposition (22%). This compares to 47% of advisers who had a general idea of their target clients, and 30% that had no target profiles at all.
Featuring the views of over 200 advice professionals, NextWealth and Aegon’s latest research guide has revealed insights into the value of planning when targeting new clients.
Referrals from existing clients is the number one channel for client generation, regardless of adviser efforts to profile targets. Those with clearly defined target profiles and those with no profiles at all both ranked this method first (both 35%), as did advisers with a general idea of their target clients (45%).
However, beyond referrals from existing clients, the research also shows that advisers with defined target profiles are more likely to generate new clients from a wider range of channels. In particular, advisers with defined client profiles were ranked number one for client generation via referrals from professional third parties (e.g. accountants, lawyers), finance events, and digital marketing (e.g. social media, search engines, advertising).
Dr. Tom Mathar, Head of Money:Mindshift at Aegon, commented: “When looking to understand the types of clients you’d like to bring under your wing, it’s important to remember that the numbers are often just the tip of a more human-centric financial iceberg.
“Each of us has a variety of motivations, values and priorities that guide us through many of the decisions we make in life, including whether we’d like financial advice and who from.
“By building target client profiles that centre on fully formed visualisations of the people and lives you believe you can help, you will be in a much better position to onboard the types of clients you want to work with, deliver a better service as a result, and become more referrable down the line. It’s the starting point for a relationship that is more rewarding and fulfilling for both you and your clients.”
Heather Hopkins, managing director at NextWealth, added: “We were inspired by a comment from an adviser who said, ‘It’s like setting a financial goal for a client and saying, this is how we’re going to get there.’ That’s exactly the thinking behind this guide.
“In advice, you wouldn’t skip the step of defining what growth is for or how you’ll measure success. The same applies to growing an advice firm. A clear picture of your ideal client sharpens your strategy, aligns the team, and makes every referral or marketing effort work harder.”
