4 Ways to Know Clients Better

Generally, I’m not a fan of advisory business owners focusing on client niches. It seems to me that having a niche unnecessarily limits potential clients, and can narrow a firm’s marketing efforts.

That said, independent advisory firms do tend to have groupings of similar kinds of clients. These groups typically result from client referrals as a primary marketing strategy.

People tend to work with — and hang out with — others with similar jobs, so, it’s not surprising they would refer folks who are like themselves. 

Consequently, many advisory firms tend to end up with groupings of similar clients in age, occupation and income. These groups often include executives at the same company, doctors in the same practice or at the same hospital, and folks in the same industries, from owners of dry cleaners and moving companies to vineyards.

And yet, surprisingly — at least to me —few advisory firm owners actually make an effort to get to know and understand the various groups who make up their client base. This is a big mistake.

Knowing your clients is not only the key to providing them with financial services and keeping them as clients, it’s also essential to attracting and retaining other clients like them.

Here are some areas to explore so you can get to know your clients better:

Age Group

Although I’ve written a lot about understanding millennials, every generation is different: in goals, lifestyles, relationship with money and the way they want to get financial advice.

Accept these differences, and try to find out what clients in all generations are looking for from you.

Challenges in Their Lives

People face issues with their children, parents, relatives, or past spouses — ranging from medical to financial and anything in between.

Often these issues have a dramatic impact on their lives, and understanding what they are can help you understand your client.