By, Shannon Dolan
As a financial advisor navigating the complex landscape of compliance, new client acquisition and client service, scaled productivity is a critical success factor. The three key challenges faced by most are finding the money within your established client base, finding the people with the money for new client acquisition and keeping them both so you have net growth rather than replacing attrition.
Creating meaningful relationships is crucial to finding fertile ground. Often, working with a client to change their spending habits, or educating them on your recommendations can be even more challenging than finding new clients. Advisors often struggle with balancing personalized service and growing their client base. This challenge creates several risks, two most notably are: becoming transactional and having to invest ahead of revenue. You simply are unable to scale in a profitable way to grow your practice and thus your personal wealth.
Conventional strategies like client segmentation, consistent communication and extending beyond financial advice can be effective. Not all clients are created equal, and client profitability is not just about how much business you do with the client, but how much money, time and effort it costs you to capture that business.
Consider an alternative, manage their income rather than just the relationship. Income Under Management® (IUM) is a way to make sure you become the destination for cash flow and all their financial decisions. Managing your clients’ income, creates opportunity for an evergreen pool of resources, so you are not sitting around waiting for their next life event or for them to tell you when they have money and confidence to implement one of the strategies you agreed. Advisors who are managing their clients’ income on Currence have increased production by up to 174% in their first year.
Finding the People: New Client Acquisition
New client acquisition is a perpetual challenge for most advisors. Advisors must strike a delicate balance between quantity and quality when it comes to client relationships. Serving too many non-ideal clients can dilute productivity. Identifying potential clients, building trust, and converting leads into long-term relationships requires significant time and effort. The competition is fierce, and advisors must differentiate themselves to attract the right client. Identifying the right clients who align with the advisor’s expertise and business model is crucial.
Niche targeting, digital marketing and social media can help to fill the top of your funnel. There are over 400,000 FINRA registered advisors in North America and I’m guessing 95+% of them are doing the same thing and also looking for the same high income earners. It is difficult to differentiate yourself with a message that catches enough attention.
If you become known as a cash flow expert who helps clients “mind the gap” between their income and their spending – where wealth is created…you will attract clients who can grow into their potential. Often these are people with income growth potential and need the right structure and guidance to optimize their cash flow. Clients who use Currence to architect and orchestrate their cash flow are saving 600% more than the national average, which is sub 4% as of February 2024 according to the St. Louis Federal Reserve Economic Data.
Retaining Them Both: Client Retention Strategies
Losing clients impacts productivity and profitability. Retaining existing clients is as crucial as acquiring new ones. Advisors must proactively address client concerns, prevent attrition, and ensure long-term loyalty, all while trying to keep current on trends, investing in personal and professional development, and attracting new clients.
To fill the top of the funnel, many Advisors are building educational programs, blog and podcast series, and leveraging their network to provide additional services through partnerships like tax and estate planning. Providing a proactive and value-added service can be costly, on your time and your bottom line.
In the end, clients really want you to solve their problems and make them more money. The root of their problems, or the seeds for financial growth lie in their cash flow. Cash flow is the key accelerator to their goals, and yours. Some of our Advisors are not taking on new clients unless they use Currence, because
“When clients use Currence they are changing their lives” according to Dave Houser of Fortress Wealth Architects, a General Agency appointed with the insurance companies of OneAmerica®.
Your productivity as a financial advisor hinges on finding the right clients, building an evergreen pool of resources to avoid becoming transactional, and retaining these clients over the long term. Implementing targeted strategies, like adding Income Under Management® with Currence to your practice, can help you find the money, find the people, and keep them both to thrive in this ever-evolving industry.
Remember, productivity isn’t just about numbers; it’s about creating lasting impact for your clients and building a legacy of financial well-being.
Disclaimer: see our disclaimers for more information.
