According to Canadian management consultant, Grant Hicks, “75% of advisors have never defined their ideal clients.”
In a recently published article, Hicks goes on to say that the advisors who do focus on their ideal clients grow their practice by 17% or more annually.
Your business should be running on systems and processes that work for you, and one of the most important of these is your system for client attraction and acquisition. Too many advisors are trying to attract and acquire anyone who will spend a few minutes talking with them. They have no system and they are not focused on any particular prospective client. They take the “buckshot” approach. Shoot enough pellets into the air and you’re bound to hit something.
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This approach leaves them chasing shiny new prospecting ideas and frustrated with their results.
The better approach, according to most marketing experts, is a laser focused one. Especially in the current environment, making the decision to focus your three major resources — time, energy and money — on an ideal client is the first step in opening your business to the possibility of accelerated growth. The systematic use of two or three prospecting methods, aimed only at that target, gives them all the new business they can handle.
For most advisors, the ideal client is the one that brings them the most income. Some advisors also consider how much they enjoy working with a particular client, and whether or not they are receiving quality referrals from them. Some advisors consider “lifetime value” and some weigh the cost of maintaining a particular client against the income generated by that client.