When advisors begin their careers, few realize how much time they will spend developing prospects and turning them into clients. And even fewer likely realize the cost of the prospecting process. The latest research shows the average cost to a financial advisor of acquiring one new client is a staggering $3,119.
In addition to the sky-high costs, limited data and frustratingly low conversion rates can make acquiring new clients a cumbersome — but necessary — part of a financial advisor’s workload. But it doesn’t have to be that way.
A strategic plan can streamline the conversion process to turn more prospects into clients and make it seamless and simple. It comes down to two crucial aspects: clean data and personal advice.
Set the Foundation With Clean Data
A strong client relationship starts with clean data. Inaccurate or missing data starts the relationship on a shaky foundation and opens the door for Not in Good Order forms later, slowing the account opening process and adding confusion and uncertainty. It’s also cumbersome for clients to spend those critical first meetings with an advisor talking through their basic information.
Most advisors report that their biggest bottleneck is getting data into the client relationship management (CRM) system. Instead, advisors can streamline data entry by having clients and prospects fill out their own information, saving time for both parties. It’s as simple as having a form on your website with a few basic questions for prospects. When advisors with this system get a lead, they automatically have a leg up. Why? Because they know the basic information of the client and can spend their time building a relationship and having meaningful conversations instead of wasting time on basic data entry.
Showing Up for Clients at Moments That Matter
From robo-advisors to large firms and solo RIAs, investors have plenty of options when choosing a financial advisor. One of the biggest differentiators is a personal touch, or being aware of a client’s unique needs to offer personalized and timely advice. One recent study found investors want “personalization, peace of mind, and the ability to act,” as well as for advisors to know them by making them feel seen and heard. Leading with client-centric advice means being there in the moments that matter in clients’ lives, from a new home or baby to retirement and beyond.
Data leads to information, which leads to insights, which leads to recommendations, and, ultimately, to action. It’s not enough to simply enter data into a system — advisors must understand the data and use it to connect with clients during meaningful moments at the right time to optimize their financial futures.
Experts recommend that advisors engage with clients 10-12 times a year. But those interactions need to be meaningful and personalized to make an impact. An advisor reaching out to a client with a personal and timely recommendation will be much more successful than an advisor who only asks a client how they’re doing to check a box.
When it comes to prospect and client engagement, quality matters as much as quantity. Personal advice builds trust and goodwill to strengthen future relationships and move the prospect down the pipeline to becoming a client.
What’s Next?
How can advisors put these two key elements into action? Through the seamless partnership between PreciseFP and Bento Engine. PreciseFP streamlines the client data-gathering process to automatically populate the CRM. Then, Bento Engine scans the CRM to find upcoming birthday-based opportunities for advisors and gives them the tools to execute.
That means a prospect can easily enter their personal information, including birthdate, and Bento Engine can scan to alert advisors when the client is at the ideal age for retirement withdrawal, for example. The advisor will get a notification, resources, email templates, and talking points to connect with the client about their upcoming milestone. It’s a seamless way to provide personalized service to clients right when they need it.
Advisors today have access to an incredible amount of data. But being successful in finding and keeping clients means making the data work for you through the PreciseFP and Bento Engine partnership. Click here to learn more and sign up for a free trial.
