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Unless you tell them, your client has no idea how many relationships you have on the books. They might think you have thousands. If you work at a major financial services firm, they might count their retail clients in the millions. The next tier of firm counts their clientele in millions, or at least several hundred thousand. Your client has consciously chosen to work with a financial advisor. They want to be treated as a market of one. How can you do that?
This is an area where RIAs, boutique firms and private banks often excel. Years ago, I met a financial planner who used the expression, “We consider the person, not the portfolio.” There are a couple of underlying messages: Once a person gets through the door and qualifies as a client, everyone is given full service. They kept their clientele small for this reason. The second point was they make a great effort to understand the client’s unique situation instead of simply looking at the pool of their assets and matching it up with a risk tolerance category and a model portfolio. Clients want to be considered a market of one.
1. Get to know them and their family You see this on TV ads: “We take the time to get to know you.” It may be an overused expression, but that is what clients want. Everyone feels their situation is unique. As an advisor, you might feel people fit into a few broad situational categories. You need to take the time to learn what makes their situation different, even in subtle ways. How many children do they have? Which children’s situation will need more of their attention? What terminology are they comfortable using? They need to feel you are taking steps others would not.
2. Handle personally. I came across an insurance professional who used this expression with great success. “If you become my client, I will handle your account personally. I will not hand it off to another advisor or a customer service unit. You will be a very important client.” Everyone wants to feel they are an important client.
3. How can I reach you? You might want to separate your business and professional lives. Your client still needs to feel they can reach you in an emergency. Years ago, I needed to use the phone at a storefront business. I noticed the phone had speed dial buttons. One read “Lawyer” and another “Lawyer at home.” Client need a level of comfort in case of a true emergency, you are reachable.
4. Everything under one roof. Years ago, I recall a firm that started with the concept, “All things to all people” transitioned to “All things to some people.” You do not want to be one service provider to your client. You want to be the first and only call they need to make. This means you have in house resources or a really good referral network. It has been said private bankers build a wall around the client, then did a moat around the wall. All services the client needs are available inside that wall.
5. Go far beyond investments. When I have seen this done well, the services can be wide ranging. Some firms will advise on health insurance, car leasing and salary/bonus negotiations. You want to provide a series of services beyond the obvious that the client cannot find in one place elsewhere.
6. Business entertaining. Part of treating the client as a “market of one” involves setting up some client meetings around a meal. You meet with the client in the morning to discuss business, then take them to lunch afterwards. One of the perks at my former firm was access to the executive dining room. This makes an impression on clients.
7. The personalized newsletter. Many advisors use newsletters, either in print or electronic versions. Your firm likely has an archive of articles you can choose. In some cases you should be able to segment your client base so different groups of clients get different versions of the same newsletter. The clients who like travel get the version with a travel article. The clients interested in cooking get the culinary themed version. The client feels “You are speaking to me.” This encourages them to refer friends with similar interests.
8. Exclusive client events. No one likes crowds. Everyone wants to feel special. Large firms will sponsor museum exhibitions or the symphony. An auction house might have preview receptions before a major sale. When clients receive an invitation, they see this as recognition they are an important client.
9. Progress to goals. Many people track their portfolio performance vs. market indexes. This can be tricky because they often have a blended portfolio. The amount of international investments is another factor. The more important number is the return they need to reach their desired goal. When you create a system that measures progress towards their stated goals, they feel your approach is personalized.
10. Reviewing and updating financial plan (number keeps rising). Some clients might feel a financial plan is a “one and done” exercise. You have heard the expression, “Life is what happens when you are busy making plans.” Major events happen. People change jobs. People get married. Babies are born. The financial plan needs to be dynamic. The client feels you are helping them navigate the financial aspects of life as it unfolds.
All of these points are degrees of personalization that help the client realize they are treated as a “market of one” by their financial advisor.
Related: Why Clients Should Properly Value Their Collectibles