Small dealers and their advisors looking to expand their businesses need to strengthen their relationships with clients and become more visible to prospects, according to a panel discussion at the Investment Industry Association of Canada’s (IIAC) Small Dealers Symposium on Thursday in Toronto.
There are several ways to accomplish that, the panelists suggested. Bob Simpson, president of Synchronicity Performance Consultants in Mississauga, Ont. emphasizes the need to create a plan when it comes to developing client relationships. When small dealers look at their business, Simpson advises, they should say: “Here’s where we are, here’s where we want to be and here are the gaps.” That makes it easier to craft a plan that will bridge those gaps and create a business model that is successful in attracting the type of clients — and advisors — a firm is looking for. To obtain the best results, Simpson suggests creating a three-year plan.
Advisors looking to build their businesses should also be keeping a close watch on demographics. As baby boomers move into the “deaccumulation” phase of retirement, says panel member Randy Ambrosie, president of consulting and research firm, Accretive Advisor, advisors need to spend more time with senior clients on complex issues that arise later in life, such as estate planning.
Small dealers also need to “harness the advisor/client relationship,” Ambrosie says, and gain more business through referrals from engaged clients. According to Ambrosie, most advisors only get the benefit of one out of every 10 referrals they receive because clients are giving the wrong type of referral. A “poor referral” occurs when a client simply tells a friend or colleague to call the advisor. Instead, the client needs to explain why they like the advisor and how they can help the prospect.
Technology is another factor driving business development for small dealers. “Inbound marketing,” which refers to situations in which a potential client uses a search engine to find an advisor or firm, is becoming increasingly popular, says Ambrosie. As a result, it’s important that advisors have a website so that they are visible when people conduct searches online.
On the other hand, while Simpson agrees that websites are important, he does not believe that advisors should have individual sites. Instead, small dealers should create one centralized site where visitors can view every advisor who works for that dealer, Simpson says. Prospective clients can find out more about the individual advisor on the site by clicking on a list of blog articles written and provided by the advisor.