“Fish where the fish are” is an aphorism that can be applied to an array of endeavors, from advertising to politics to business. In the realm of wealth management, this pithy, proven concept often leads financial advisors to focus on the unique needs of affluent clients.
Last month Oechsli, a marketing firm offering consulting services to financial advisors, released a survey that examined this market, including what affluent investors want in a wealth management team. They distilled the data into “5 Marketing Trends for Financial Advisors”: The affluent are generally happy with their advisors. Some professions view upscale customers as a high-maintenance demographic, a group with an exacting attention to detail. But according to Oechsli’s survey, the affluent tend to have easy-going relationships with their financial advisors. In fact, 80 percent indicated their financial advisor is a friend. An even higher 85 percent rated their advisor as “very good” or “excellent.” There are specific reasons why the affluent refer. These strong relationships pay dividends down the line for financial advisors. More than 58 percent of affluent clients have referred others to their financial advisor three or more times over the past year. In the survey, 31 percent said they made a referral to help the financial advisor grow his or her business; and 36 percent did it to help a friend or family member. Wealthy prospects look for well-connected teams. In this category, Oechsli used $2 million as the dividing line between two groups that were more closely analyzed. In the above-$2 million group, 62 percent indicated they preferred a team handling their investments; this was important to just 49 percent in the under-$2 million category. Oechsli noted: “Those with more wealth also have more desire to be connected with experts outside the team. A staggering 92 percent of those with $2 million or more want an advisor with a strong network of outside professionals to whom they can be referred.” More affluent consumers are going online to begin their advisor search. When the affluent go fishing for financial advisors, they start with friends, family and professional recommendations. But 24 percent start their search online, up from 13 percent last year. With online searches, 95 percent of affluent investors are seeking a local advisor. A financial advisor’s website is key for this group: a low-quality site is a red flag for 90 percent of affluent clients. Thought-leadership efforts shape affluent perceptions. The affluent are looking for financial advisors who are plugged in to the latest trends and technologies, thought leaders in the profession. “Your social posts, videos, and podcasts are having an impact on affluent perceptions, especially with younger generations, Oechsli found. “An overwhelming majority of respondents find short videos of you explaining your background, differentiators, and process helpful.” Winning topics tend to be practical pieces that offer detailed advice on personal finance, rather than broad market commentaries. Among the most popular topics in the over-$2 million segment were estate planning, financial planning and creating and preserving generational wealth. Important information about mutual funds is found in the Fund Facts document. Please read this carefully before investing. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate. Insurance products, including segregated fund policies, are offered through Beyond Business Financial Solutions Inc., and Investment Representative Nathan Garries offers mutual funds and referral arrangements through Quadrus Investment Services Ltd. Comments are closed.
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AuthorNathan Garries is a Certified Financial Planner who has been involved in financial advising, financial planning and wealth management for over two decades, carrying on a family tradition of three generations. Archives
October 2022
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