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Financial Planning > Charitable Giving > Donor Advised Funds

5 Investor Profiles You Should Know to Better Serve Your Clients’ Needs

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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.

The value of referrals

In the second section of How investors select advisors, we find that referrals are a driving force in business development. Indeed, more than half of all advised investors found their advisors through referrals. An investor who comes to you via a recommendation, regardless of the source, is likely to hire you and to be loyal to you. Referred clients also are more likely to recommend you to others. Simply put, referrals can create a virtuous cycle for your business.

Suggested strategies for winning more referrals appear in both the research booklet and an accompanying insert, Drive referrals to enhance your practice.

Read the full report today

For detailed findings and practical tips, access the research booklet below. (Logon required. Not registered yet? Registration is free and easy and provides immediate site access.)

Read or order the booklet


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