New investor-advisor relationships begin every day. Whether it is through a referral or an advertisement or a seminar appearance, advisors attract investors and get them to agree to work together to protect and increase their financial portfolio.
But why you?
Why do investors seek you out among all of the choices they have? Why do investors stick with you, when other advisors offer more and better service?
Spectrem research answers many of these questions, but advisors and financial providers need to want to know the answers to those questions.
Certainly, when an investor reaches out to begin a new working relationship, it is customary for an advisor to ask the question “How did you hear of our firm?” or some similar question. But often, that innocent query is just an ice breaker.
If the investor says “I heard good things about you from a co-worker” do you ask who that co-worker is? Do you ask what the co-worker said specifically? Or do you just move on, perhaps to avoid the slightly uncomfortable moment in which the investor describes a conversation they had about you?
If the investor says “I saw an advertisement about your firm”, you might ask where they saw the advertisement (on television, in a magazine, or on a website), but do you ask what about the advertisement worked? What phrase or image sold your service to them? What detail was the most compelling? Or do you just move on to the important topics, the investor’s portfolio and what you can do with it?
If the investor says “I was in attendance at a recent seminar where you spoke”, do you follow-up with questions about what you said which prompted the investor’s visit? Or do you make a joke about the quality of the lunch that was served and move on again to the matter of making money, for both the investor and for yourself?
All of the above scenarios could benefit from a follow-up. It is said God is in the details. In this case, it is not enough to know what worked. The benefit comes from finding out why it worked.
Advisors spend a great deal of time, effort and funds to attract new investors. They use one method to attract first-time investors, and they use other methods and place advertising on other sites in order to attract investors who are displeased with their current advisor.
But what quality did you or your firm present in advertising that sealed the deal? Marketing professionals will tell you where you are reaching the most eyes, but can they tell you what word or phrase was most effective in presenting your case?
Advisors could probably benefit from knowing what specifically brought investors into their office in the first place.
According to Spectrem’s quarterly wealth segmentation study Advisor Relationships and Changing Advice Requirements, almost half of all investors are originally introduced to their advisor through a referral. It’s truer for some investors (64 percent of Business Owners get introduced by referrals) but parents, friends or business associates are all likely sources of the referrals that lead to new business.
And all of those referrals come from people who know you, who have worked with you, and who have been satisfied with your performance. Otherwise, why would they refer you? A satisfied client is not only a source for new clients, he or she is also a source for understanding what works in your investor-advisor relationships, and what produces satisfaction.
Client satisfaction is definitely a goal for financial providers. But how much time is spent within the firm to study not only those clients who were dissatisfied enough to leave the firm, but also those clients who are satisfied with your performance? Why are they sticking around?
Spectrem’s Best Financial Advisor service can answer that important question. By providing a third-party questionnaire to be presented to your clients, you can find out what it is your firm is doing correctly, what function is providing the necessary ingredients to a successful investor-advisor relationship.
The survey results are published on the Millionaire Corner website for all to see. Submitting to a third-party satisfaction survey is a certain sign you believe in the quality of the service you provide.
The survey results are also available for you to publish on your external websites, blogs, social media posts or newsletters.
It is valuable to know why investors started working with you in the first place. It is equally valuable to know why they continue to do so.