“Speaking of … ” PART 2 of 3

As Usual – “It’s the clients, stupid!”                                                                              

As we all look forward to brighter days in 2021 in anticipation of the miracle cure for Covid-19, the disease continues to ramp up and the country moves into lock-down.  Ultimately, this will pass, but the effects of psychological and economic isolation will linger for quite some time.  With this you will find the clients questioning the stability of markets in the days ahead.  Therefore, the astute advisor should be re-considering the value they bring to the client’s table and how the clients are going to gauge that value.

The” boomer” retirement market is still a very large factor in the market and the massive amount of attention it attracts from advisors bring the question of differentiation and expected value in advice giving.  Knowledgeable and trusted advisors are normal expectations with today’s clients.  And normal won’t cut it as retirement planning strategies disappear within a homogeneous framework.  Differentiating can be difficult in the business where most advisors claim to be experts.

Consider the following 

• Current and post Covid clients are and will be looking much more closely at their own  participation in the investment process.  More needs, more questions, more transparency are now expected as are closer attention and communication in a much closer relationship with their advisor.  You should be ready to lose clients if you don’t measure up to their due diligence demands.

• Outside of buying a book, as earlier discussed, the best way to build a clientele is through referrals from your existing clients.  Without re-hashing the above commentary you should realize that without providing the excellent service criteria required in your client relationships the likelihood of you receiving referrals is simply not likely.  Again, it comes down to what you must be and what you must do in the client relationship that distinguishes you from the “average” broker.

• In and of themselves, books that contain a large number of clients defy differentiation.  It is obviously an old argument about how the greater percentage of revenue flows from a small number of accounts.  But, apart from that truism or rather adding to it is the benefits to be reaped by specializing in what you do best.  Focus on your expertise and clients who appreciate the value you bring to their table.  Your expertise, your excellent value offered to a smaller circle of astute investors will boost your time availability and your refer-ability.  Focus on the accounts to which you can bring the greatest good; if you attempt to be a one stop shop for all, you will fail.