Advisors who work with “ideal clients” usually enjoy more satisfaction in their work and have greater success.
Typically, ideal clients share common characteristics, values, goals and behaviours, according to Larry Distillio, director of financial advisor business management at Mackenzie Investments in Toronto. Or they might belong to a niche or a specific profession.
> Identify your favourite clients
In order to identify your ideal-client type, you first must distinguish the people you prefer to work with among your current book of business, Distillio says.
To start, print your client list. Then, using coloured highlighters, colour-code clients according to various categories based on criteria such as revenue or profitability; those who take your advice; or those who are a pleasure to work with. Also try to group clients using common demographic groups (such as age group), or psychographic traits (such as interests and opinions).
You should end up with a list identifying clients you like to work with, some you don’t care to work with and some who are in-between.
Distillio recommends that you then determine which category of clients you have “a natural affinity to,” based on your values and strengths.
> Determine their needs
Find out what you can about the needs and concerns of your ideal clients. Conduct independent research online, and talk to those you have identified as your ideal clients. Your goal, Distillio says, is to duplicate these clients.
Given that you are trying to build your practice around this client type, find out as much as possible about groups and organizations they belong to, events they attend, charitable associations they support, and other professionals in their circle. Your objective is to get a thorough understanding of their needs, concerns and behaviors.
> Match solutions to their needs
“Take a step back,” Distillio says, “and perform a SWOT [strengths, weaknesses, opportunities and threats] analysis on where you want your business to be.”
The SWOT analysis, he says, should allow you to create goals that take advantage of your strengths and address any gaps that are holding you back. It should also allow you to align the solutions and services you provide to the needs of your ideal clients.
> Find sources of ideal clients
“Always be curious about who is in your ideal-client network,” Distillio says. Pay attention to what your existing ideal clients talk about and find out what skills or other interests bring them together.
“Probe and record what you learn,” he says. “You never know what you’re going to find out.”
Engage in a referral process, he adds, and seek introductions to prospects. You might also volunteer to be a guest speaker at events attended by potential clients.
> Develop a marketing message
Engage potential clients in conversation, Distillio says. Try to create a “mental imprint” by asking questions about challenges faced by members of your target market. The intent, he says, is to offer solutions.
Distillio also recommends using “the power of story” to highlight specific challenges and solutions. Use client seminars to demonstrate ways you can help your clients reach their financial goals.
All elements of your marketing must be tailored to your ideal-client type, says Distillio: “Speak their language.”