Financial Services Journal

The following is based on one of The Covenant Groupís clients, Chris Corbes. All of the names and telling details have been changed to preserve client privacy. Special thanks to my client, Peter Chandler, for providing the inspiring story included in this case study.

Chris Corbes made his clients money, so he couldnít figure out why he was having trouble getting new clients.

Chris had been an advisor for ten years, making roughly $180K annually. Before becoming an advisor heíd been an analyst with expertise in judging public companies and their prospects for share growth. By combining his analystís insights with sound investment strategies Chris did well as an advisor, generally outperforming the rest of the advisors in his firm in terms of client portfolio growth. But it always frustrated Chris that most of his competitors seemed to have an easier time growing their clientele.

ìThe occasional thing, but Iíve always relied on my reputation. If I make my clients money, I figure the word will get around. In my first few years in the business, thatís what happened. I just seemed to have a steady enough flow of referrals.î

ìChris,î I said, ìduring your early years in the business, you would have built your clientele from people within your immediate network, people who knew you and were comfortable with you. That core network can carry you for a few years, but as your business matures, as you start to move up market, you need to find more reliable ways of gaining access to high-quality prospects.

ìAnother thing thatís changed is the market. You came into the business in a bull market. Investors had a different attitude to investments and to working with advisors back then.î

ìYes, thatís true,î I said, ìbut on this side of the collapse people have more clarity about what they look for in an advisor.î

ìSurely they want an advisor who makes them money. Iíve proven I do that consistently.î

ìObviously nobody wants an advisor whoís going to lose them money, but the reality is, making money is not the number-one thing most people look for in an advisor.î

ìMost surveys of consumers, such as the one done in 2002 by the Certified Financial Planner Board of Standards, show that issues like ëtrustí and ësomeone who listensí are things people value most when choosing an advisor. In fact, some studies show that ëmaking me moneyí isnít even in the top half dozen.î

ìI donít know if this is why,î I said, ìbut it seems thereís a loss of innocence out there. People know thereís more to their relationship with their investment advisor than just ëmake me moneyí. Money issues are emotional, especially when people get hurt financially. They want an advisor who can relate to them.î

ìI relate well with all my clients. And Iím certainly trustworthy,î Chris said.

ìOf course, but you canít have a Field-of-Dreams attitude about growing your business. You canít say, ëIf I make them money, they will come.í It just doesnít work that way. Especially not for someone like you at the stage youíre at in your business. When you first started out, Iím sure you took on anybody as a client. Anyone who had a few dollars to invest.î

ìBut now, the value of your time has increased. You want to work with a certain level of person. The only way to ensure youíre creating a steady supply of high quality prospects is to promote yourself. Do some marketing.î

Chris was a backroom type of advisor, someone who enjoyed playing with the numbers, poring over annual reports, financials, digging around media for insights into a companyís strategy. I could see he didnít like the idea of having to work too hard for new clients.

ìMarketing isnít an option when you run a business,î I said. ìYou might have chosen to be an advisor because you enjoy the numbers, but the reality is youíre running a business, and there simply isnít a business around that can operate without marketing.î

ìBut it doesnít have to be a chore, Chris. In fact, it can be enjoyable, especially when it works. Although marketing takes some planning and effort, an effective campaign will pay for itself dozens of times over. You might spend a few hundred or a few thousand on a campaign that could generate tens of thousand in fees or commissions over the next few months. If you like numbers, that should impress you.î

ìBut, Chris, I think youíve got to look hard at what marketing activities you do. If people are looking for an advisor with qualities like trustworthiness, listening, caring, an ability to connectÖ youíve got to find ways to demonstrate those more intangible qualities.î

ìA client of mine, Peter Chandler, who runs a Canaccord branch in Waterloo, is a superb example of someone who knows exactly how to market himself and his office. Peter understands perfectly well that itís not just performance that counts -- that people place a high value on the personal relationships they have with their advisors and so runs marketing campaigns that showcase the personal qualities of his advisors. Peter does this by combining promotional activities with community-building efforts.

“For example, Peter recently wanted to do something to support the local theatre and came up with a way of doing so that would also give him the opportunity to promote his services. In working with the local theatre, he told them he would be able to fill the house to capacity with people if the theatre let him have the place to himself for an evening at cost. The theatre loved the idea. They knew the public would support their productions if it saw them, but attracting people in the first place was their biggest challenge. If Peter could fill the house and cover their costs, that was a great deal for them. To make the evening of greater value to his clients and prospects, Peter arranged for an expert to present on an investment topic people would be interested in. A fund company sponsored the speaker. The event was billed as an evening of education and entertainment. Peter and all the advisors in his office invited their clients to come for free and encouraged them to bring a guest. During breaks and intermissions Peter and his advisors mingled with their clients and guests. To fill the room, Peter sent out invitations and promoted it through the local radio and newspapers. Needless to say, the theatre was packed to capacity and the evening was a huge success.

ìPeter does many of these types of events throughout the year,î I said, ìand each of them is a success.î

Chris could see now that marketing didnít have to be a dull, expensive and dubious endeavour, but could be a fun way to effectively showcase that he wasnít just somebody who can make his clients money, but someone capable of making a deeper connection.

Within a few months, Chris ran his own community-building event, supporting an animal shelter, something he cares deeply about, and something, he was pleased to discover, that his clients any many of their friends also cared strongly about. He is looking forward to running more such events and doubts heíll ever complain about not having enough prospects.

Lessons learned
Chris learned three important lessons about gaining prospects:

Norm Trainor is the author of The 8 Best Practices of High-Performing Salespeople, a speaker and principal of The Covenant Group, a company that specializes in helping advisors build their practices. The Covenant group has worked with many of the world's largest financial institutions, including such firms as Swiss RE, CGNU in Hungary, Guardian, BMO and Clarica, helping their management and advisors create and sustain high performance by adopting a systems approach to practice development. The Covenant Group's proprietary practice development system, The 8 Best Practices of High-Performing Advisors Program, has been adopted by organizations around the world and is a leader in the industry. For further information, visit The Covenant Group's Web site at www.covenantgroup.com or email info@covenantgroup.com or call The Covenant Group at 416-304-1766.