Advisors and their teams juggle many responsibilities, with marketing strategies being a key focus to attract new clients. But once a prospect discovers you, it’s essential to understand what truly drives their decision-making. What do they really want from their financial advisor beyond the surface-level qualities? Advisors may think they know the answer, but preferences shift over time due to generational changes and evolving market conditions. To effectively grow your practice and connect with the right clients, it’s crucial to tap into what truly matters to them. Here are seven things potential clients prioritize when choosing a financial advisor.
According to a survey from the American College of Financial Services, evidence of knowledge (such as education and certifications) is the top thing potential clients look for when selecting a financial advisor. Clients want advisors who have the education and experience to understand financial topics. That means advisors need to share their credentials openly and continually learn about new changes, policies, and products.
1. Trustworthiness
Another top characteristic potential clients want in a financial advisor is trustworthiness. For many clients, trust is at least as important as the financial performance of their portfolio. Clients want to trust that their advisor is acting in their best interest, understands them, and makes smart decisions. Trust builds a human connection, which helps advisors stand out from robo-advisors. Advisors build trust as they listen to clients, follow through on promises, and are reliable.
2. Understanding of Financial Goals
One of the best ways to build trust is by listening to clients and understanding their financial goals. Clients want to feel comfortable asking their advisors questions and know their advisor understands their unique needs and goals. Listening leads to personalized care and recommendations. Take the time to understand your client’s financial goals, concerns, values, and communication preferences.
3. Clear Communication of Financial Concepts
Advisors wear many hats, but one of the most important is as a financial educator. The financial services industry is full of jargon that can be confusing to clients. Clients want someone who can clearly communicate complex financial concepts so they understand what’s happening to their money. As advisors explain financial concepts to clients, they build trust and empower clients to understand their finances. Much of that education comes through regular communication. You should be communicating with your clients as often as necessary about things like updates to their investment performance, market changes and shifts, and reviews of their portfolios.
4. Positive Reviews and Reputation
Another important factor for potential clients is an advisor who has a positive reputation, especially when those reviews come from friends or family. People are 400% more likely to become clients when their friend refers them to an advisor. When looking for a new advisor, potential clients will likely ask friends and family for a recommendation or look at which firms have a positive reputation in the community. To take advantage of this, advisors need to prioritize referrals, ask current clients to leave positive online reviews, and participate in community events.
5. Convenient Technology
Today’s clients are used to handling everything from their groceries to their email and travel reservations digitally, and they want that same convenience from their financial advisors. Clients increasingly want more digital access to their accounts and seamless integration into their everyday lives. When advisors and firms leverage digital tools, clients feel empowered to know how their accounts are progressing toward their financial goals. Digital tools can take on many forms and impact all areas of the client experience, from connecting with advisors through video calls to managing their accounts and seeing progress on mobile dashboards.
6. Holistic Services
Today’s potential clients want advisors who look at all aspects of their lives, including their retirement, insurance, and tax needs, not just their finances. One survey found that 71% of millennials and 57% of all respondents prefer to do most of their financial business at one institution that can bring together the specialists and services they need. Advisors stand out when they take a holistic, comprehensive approach to advising, look at their clients’ whole lives and goals, and offer personalized services to meet their needs. Instead of only examining a client’s finances and deciding how much to invest, a holistic approach considers all areas of their life, including their family, career, and future goals.
One of the most effective ways an advisor can gauge a prospect’s interest in moving forward is by using a completed PreciseFP Fact Finder. Sending this out during the discovery stage provides valuable insights into a prospect’s life and financial needs, even before you sit down for a meeting. It also offers clients the privacy to make important decisions, like designating contingent beneficiaries or sharing sensitive information, such as their Social Security number, at their own pace. Try it out for free at PreciseFP.com and explore best practices from other financial advisors at Skool.com to optimize your approach.
