By Gerri Leder
Investor temperaments can change after a market upheaval like we’ve been through. Have you noticed how wealthy clients now talk more about keeping their hands on the details of their portfolio, drilling down more on fees and trying to comprehend risk? Whether this means they are skittish, skeptical or just trying to become more informed, you may be feeling the glare.
There is still a lot of money in motion – investors who are open to change, receptive to new approaches and seeking more accountable relationships. They want the same professional standing of their physician and the unquestionable integrity of their accountant all wrapped up in an advisor who also cares about their goals and plans. These same investors, however, eschew sales approaches. Their physician doesn’t sell; nor does their attorney. Any whiff of salesmanship can be a turnoff.
Sterling brands have an advantage. Last year, the question seemed to be: “Is it my personal brand or my firm’s brand that matters to clients?” You had control over one and not the other. This year, we often hear: “How do I define my value proposition?”
Experience matters but methodology is just as important. Financial advisors and asset management firms manage money based on their convictions, capabilities and beliefs. Present your investment approach and let the prospect contrast it with the firm or advisor they had before. If you can differentiate based on your investment process, you build confidence.
Three things to keep in mind:
1. Refresh your value proposition. This is not to suggest changing stripes, but rather to help people understand how your practice will serve their best interests. Steer clear of vagaries like “excellent service.” Validate your value proposition with your inner circle. Then share it with your existing clients as well as new ones.
2. Embrace your investment methodology. Be ready to talk about your investment approach, how you manage risk, how you add alpha or devise income strategies for retirees. It is surprising, but most investors are receptive to hearing all the details.
3. It is true that 90% of success in life is showing up. Make sure you show up on the radar as money in motion changes advisors and custodians. Stay visible by attending the community, civic and professional events where these people congregate. Host seminars and lunch meetings and ask a client to bring a friend.
Whether you are with a national financial services firm or a local investment manager, develop a crisp statement that communicates your value as a benefit statement. Visit this space in a week or two and we’ll give you some tools to help you do just that.