PROSPECTING
4 steps to crafting a niche client base
It ’ s easy to accept every referral and prospect , but it ’ s not in your best interest to say “ yes ” to everyone .
To be amongst the best in the profession , it ’ s important to find a “ niche ” client base that you ’ re passionate about working with . With a mindset of “ quality over quantity ,” you ’ ll build more meaningful relationships with fewer clients .
As previously discussed in The Independent newsletter , take a step back and gauge your successful client relationships . Ask yourself which relationships are thriving — and which aren ’ t . By following the four steps below to refine your client base , you ’ ll curate deeper client relationships , grow your business , and better serve your clients in the long run .
1 . Identify your target client It ’ s easy to accept every referral and prospect , but you may begin to realize that it ’ s not in your best interest to say “ yes ” to everyone . Take some time to determine which clients you have the most natural conversations with and which make you feel most professionally fulfilled . If you notice you ’ re most engaged when working with retired or near retirement prospects , then you should consider centering your practice around that clientele .
2 . Confirm the match Once you understand who your niche client base is , you can begin crafting your practice around them . I like to use a pre-meeting questionnaire to determine if a prospect is a match – for us and for them .
The questionnaire includes questions , such as : “ Are you currently retired or looking to retire within the next few years ? How do you prefer information presented to you – are you more of a big picture or day-to-day thinker ?”
Simon Lister , Dip PFS , is Managing Director at ML Financial Associates in Norfolk , England . He ’ s an 11-year member of MDRT ; has three Court of the Table and eight Top of the Table Qualifications . His company provides financial planning and investment advice .
3 . Rank compatibility via an internal scoring system
After the initial meeting , couple your interaction with the questionnaire answers to create an internal scoring system . By qualitatively ranking them , you ’ ll be able to assess the prospect ’ s compatibility with the firm and each staff member .
The system should consist of what you and your team value in your clients . If you have a non-match , whether it ’ s because you ’ ve realized they aren ’ t your target demographic or their preferences don ’ t align with your abilities , it ’ s important to have a meeting with them about it . Let them know you feel your firm ’ s focus may not suit their needs and ensure this is in their best interest . Try offering a referral of a colleague who you think they ’ d mesh well with and extend yourself for future referrals if it doesn ’ t work out .
4 . Delve deeper Establishing your client niche will allow you to create more intimate client relationships . To do so , aim to bring an aspect of enjoyment into your practice .
For example , if you ’ re working with retirees who can ’ t take full advantage of their retirement due to the pandemic , consider hosting a virtual wine night or dinner for them . Interacting in a more casual setting helps your clients see you beyond just their financial advisor , further cultivating trust and building deeper relationships .
Having a true connection with your clients is what makes working in financial services rewarding . When you ’ re able to comfortably communicate and connect with your clients , you ’ ll also be able to leverage those authentic , genuine relationships to grow your practice to new heights .
40 Perspectives Q3 2022