Finding out what your competitors are doing is crucial to retaining existing clients and gaining new ones.

The most obvious places to start looking for information on a competitor is on his or her website. But the most valuable information will come from people who have actually spoken to that financial advisor, such as prospects, clients and former clients.

That may require what seems like an awkward conversation, says Larry Distillio, director of financial advisor business management with Mackenzie Financial Corp. in Toronto. But it is exactly the type of discussion you need to have.

Here are the three ways to retrieve the necessary information about your competitors:

1. Talk to prospects
Your potential clients are probably meeting with multiple advisors to find the right fit.

There is no harm in politely asking your prospects a few questions about the services other advisors are offering them, Distillio says.

Start by making it clear that you are happy to see this prospective client and appreciate the time they are spending with you. You can then continue by saying: “I understand you’re meeting with another advisor. Is it okay if I ask you what they are saying they can do for you? Who else are they bringing to the table to help you deal with your life-changing events?”

The worst that can happen, Distillio says, is that the prospect will decline to answer your question.

If they agree, however, you have some very current and valuable information.

2. Check in with clients
Just as you are trying to woo other advisors’ clients, those other advisors are inevitably doing the same in return. Broaching this topic with a client presents an opportunity to access intelligence on your competitors and make it clear to this person that you value your relationship with them.

“Prudent business owners need to build a wall around clients,” Distillio says. “They need to understand if competitors are talking to clients and what they’re talking about.”

Tell your client: “We’ve been working together for many years and I don’t want to take this relationship for granted. I would be naïve to think that my competitors are not trying to persuade you to become a client.”

You would then ask if this is the case and what the other advisor is offering to your client.

Finish by saying: “It’s important that I know and understand this situation so that I can give you everything you need and we’re staying ahead of the curve.”

3. Talk to former clients
Some competitors will succeed in enticing your clients over to their side. But while that is unfortunate, you can still benefit. Ask your former client what it is that persuaded him or her to move to another advisor.

Start this conversation by saying: “I have enjoyed working with you and I appreciate the time we had together. I just wanted to ask you if there is something about your new advisor that made you decide to work with them. What is it about this person that made you decide they were the best solution for you?”

This is the second instalment in a two-part series on learning about your competition.

For part one, click here.