The Fact:
Of the 15 clients that the average client lost in 2001, about 70 percent were consciously transferred out as the result of low assets or personality conflicts.

The Implications:
Advisors are taking a more disciplined approach to analysing their clients and focusing only on those client relationships that are profitable. In some cases, a client that is unprofitable for one advisor may be profitable for another, based on the scope of services provided or the efficiency with which service is delivered.

The Idea:
If a client is unprofitable, first determine if a change in service level or the delegation of the relationship to a junior advisor can reverse that situation. If the service you provide, as a baseline, means that some clients cannot be profitable, then look for an alternative for that client. The alternative might be to transfer to another advisor within your firm or to a client service unit (designed specifically for smaller clients). If you are making the cut, prepare a letter that positions the process through the eyes of the client. It is typically the case that the client will receive a more appropriate level of service outside your practice so focus on the impact on the client, rather than on your practice.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.