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April 27, 2017 at 08:00 PM
Vanguard recognizes that understanding the behavior of your clients is vital in helping them realize their goals. That’s why we’re pleased to introduce Advised investor insights™, an ongoing, proprietary research series that provides actionable insights on investor behavior.
Our first report, How investors select advisors, is based on a survey of almost 4,000 advised investors and presents findings in two areas. First, we identify five common profiles of advised investors, based on shared behavioral characteristics—notably, investors’ sense of their own financial knowledge and the degrees to which they care about your technical and soft skills. Second, we find that referrals often drive advisor selection.
For a new perspective on your clients and prospects, or to learn how you can capture more referrals, read How investors select advisors now. (Logon required. Registration is free and easy and provides immediate site access.)
Five profiles of advised investors
Source: Vanguard, 2016. Advised investor insights: How investors select advisors. Valley Forge, Pa.: The Vanguard Group.
Meet your clients on their terms
We believe our five advised investor profiles, summarized in the graphic above, can complement any segmentation strategy you may employ. You can use our profiles to get to know your clients better and to tailor your approach in ways that will resonate with them.
For example, with I want it all clients, be sure to listen well and ask questions. About 90% of such investors say it is important for their advisor to be a good communicator. With Show me performance clients, be sure to discuss various potential portfolio benchmarks and clarify investment objectives before selecting one or more targets. After all, if you are likely to be judged on returns, it’s only fair for you to be comfortable with the benchmarks. Finally, if you work on a team, identifying who works best with certain profiles may help to strengthen your client relationships. Many other examples of how you can tailor your approach can be found in the report.
