Growing a firm can be challenging, especially with an increase in robo-advisers, more demand for financial advice, and a fast-paced, changing industry. However, to stay relevant and profitable, advisers have to continually look for growth opportunities.
Unsure where to start? Here are five effective growth strategies for financial advisers:
1. Develop a niche
Financial advising is competitive. One effective way to stand out is by finding your niche or narrowing your focus on certain client segments. Consider what makes your firm unique and find a niche that matches your skills and interests or where there is demand in the market. A niche can include a variety of factors, such as targeting a specific generation of clients or people in a particular life stage, such as millennials or people preparing for retirement. It can also include specialising in specific advising, such as for small businesses, entrepreneurs, sustainable investments, or long-term accounts.
Build a brand that showcases your unique niche and appeals to potential clients. Establishing your niche helps you hone in on a target area and become known for that specialty. People will soon begin to recognise you as the firm that excels in that field, and you can target your outreach and marketing toward potential clients in that niche.
2. Build multi-generational relationships
Successful financial advisers do not just develop strong relationships with their current clients — they set the stage for the next generation of clients. By 2048, an estimated US$124 trillion is expected to be handed down to heirs. Even with all that money changing hands, around 80% of high-net-worth clients do not want to work with their parent’s advisers.
Advisers now have a great opportunity to build relationships with the next generation and showcase their expertise and skills. Advisers who understand the nuance of wealth transfers and can provide personalised, effective recommendations are more likely to retain their current client’s children.
3. Prioritise client referrals
More than half of the average financial adviser’s business comes from referrals. People are 400% more likely to become clients when their friend refers them to an adviser. That means your current clients are your biggest champions and can help grow the firm as they share it with friends and family.
Gaining referrals obviously starts with providing great service that clients feel comfortable sharing with others. If clients have to work through clunky processes or technology or do not feel valued by their adviser, they are less likely to recommend the service to others.
A big part of gaining client referrals is simply asking for them. Create a referral program where clients can easily share your business with their friends and family and gain something in return, such as additional services, entries into a raffle, or a discount on their advising fee.
4. Grow your online presence
It used to be that financial advisers had to live in the same geographic area as their clients so they could meet face-to-face. However, with the growth of digital services and video connectivity, financial advisers can now work with clients nationwide. That opens the doors to a wider pool of potential customers and more growth opportunities. Take advantage of that by growing your online presence.
Establish your presence on social media and a website and keep it updated with current contact information. Content marketing, such as sharing blog posts, videos, or podcasts about financial topics, can also help you gain traction online and establish yourself as a trusted adviser with potential clients.
5. Embrace automation
Much of an adviser’s time is spent preparing for client meetings, sorting through data, and scheduling appointments. But when mundane, repetitive tasks consume your time, you are not spending time building client relationships or growing the firm.
Give yourself the gift of time by turning to automation for repetitive tasks. AI-powered automation is becoming more prevalent and can help streamline processes like scheduling social media posts, sending follow-up and lead-generation emails, or segmenting clients for targeted communication.
With your schedule free of those low-value activities, you have more time to focus on big-picture growth, establishing your brand, and creating growth opportunities.
No matter the size of your firm, Docupace can help keep things organised and running smoothly. New account opening, compensation, surveillance, and compliance can all be streamlined into one platform. Click here to schedule a discovery session.
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