Ever feel like growing your wallet share with clients is as puzzling as a game of hide and seek? You’re not alone. Advisors often find understanding how to boost assets under management with existing clients challenging.

Conventional wisdom tends to point fingers at advisors themselves. “Build better relationships,” they say. “Offer more perks or give more competitive rates.” Sure, this advice is good in general, but what will really make clients expand their portfolios with you?

Imagine you have a financial planning client, and it just makes sense for them to become a tax client or an insurance client too. But how do you pitch that?

Docupace recently hosted a webinar with Laura Gregg, Director of Advisory Research at FlexShares Exchange Traded Funds, to tackle these questions head-on. This blog breaks down the cutting-edge research Gregg presented. You’ll discover how building trust, improving client transparency, and asking clients for more money depends more on their investor persona than your overall tactics.

Grab your water, and let’s talk client engagement!

There’s No Silver Bullet for Improving Wallet Share

FlexShares conducted a comprehensive study with over 400 investors and advisors to determine how clients and advisors understood growing wallet share. Their findings? No single factor or formula dictated how clients thought about wallet share. In short, there is no silver bullet tactic for growing clients’ assets under management with your firm.

However, what FlexShares did find was the following:

• People come to advisors with a predetermined idea and emotions about how they want to work with them, and they already have an idea of how much money they want advisors to manage.
• Respondents could be grouped into five distinct categories of investor persona, ranging from those who were most risk-averse to those who were the least risk-averse.
• Understanding the personas their investors fall under is critical for advisors to speak to clients in a way that they understand and will respond to build trust and ultimately grow wallet share.

The bottom line of the research? Growth of wallet share directly correlates with growth of trust. The only way to build trust successfully with each group is to take a tailored approach to relationship-building, service offerings, and communication.

Tailor Your Approach to These 5 Investor Personas

FlexShare’s research identified five distinct investor personas. To speak to your clients in a way they’ll respond to when it comes to asking for more assets under management, you need to know what will appeal to them best. Let’s break down an overview of each persona and how to build trust with them.

1) The Protector

Protectors are the most risk-averse investor group. They’re likely skeptical of advisors in general and take a more guarded approach to letting you know their full financial picture. They want the lowest fee possible and don’t like being sold to.

How to earn their trust:

• Simplify processes and interactions.
• Reinforce the rules to assure them you’re trustworthy and transparent.
• Pursue a relationship on their terms — show you’ll work with them when you have nothing financial to gain.

2) The Competitor

Competitors see investing as a game. They want to play advisors against each other and are performance-driven — they want to win. They’re anchored in benchmarks and shy away from planning in favor of performance goals.

How to earn their trust:

• Be transparent and convince them you’re on the same team.
• Shift their attention to the long game and how you can provide value.
• Don’t take their competitive hype at face value; they still want a relationship.

3) The Collector

Collectors don’t want all their eggs in one basket. They have multiple advisors for myriad reasons, and they like managing multiple money managers. Investment risk isn’t as important to them as spreading their assets out.

How to earn their trust:

• Appeal to simplifying their portfolio — it can be a lot to manage multiple advisors.
• Lean into financial planning over performance to win the long game.
• Win the relationship game by being attentive and proactive.

4) The Verifier

Verifiers want a transparent consolidated solution — they’ll trust only after verifying your worth. They likely have some investment expertise and value the client experience and an established relationship over everything.

How to earn their trust:

• Take a holistic approach that anticipates their needs before they ask you.
• Identify missing pieces in their life where you can add value.
• Motivate them forward rather than pushing them forward.

5) The Simplifier

Simplifiers have little investment anxiety and like to keep their investable assets as a lump sum in one place. Their need for simplicity and an advisor they like means earning a large share of their wallet up front is easy. However, keeping it is just as crucial lest they move their assets elsewhere in one fell swoop.

How to earn their trust:

• Check in regularly, at least quarterly, to make sure they feel seen and top of mind.
• Never grow complacent.
• Help them take advantage of everything you offer, from small perks to bigger ones.

Knowing Your Client

Ultimately, advisors who grow their assets under management with clients will understand their portfolios and tailor their strategy to each client’s unique needs. However, that doesn’t mean you need to serve every investor persona if it doesn’t work with your business or your preferences.

Key to earning more wallet share is understanding your ideal clients and making more space for them in your roster over clients who don’t fit the bill. You can find out your ideal client by asking:

• Who are your ideal clients?
• Which investor persona do your ideal clients most align with?
• Why is that your ideal investor persona?

With PreciseFP, you have the customization power to speak your client’s language. You can create an engagement for every persona style, making your engagements much more meaningful to your clients. Sign up for a free trial or chat with us using the chat icon today.

Debbie Miller

Vice President, Support & Training, Docupace

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