Reaching a prospect who already has an adviser – part 2

10 October 2017Myra Knoesen

In part one of the article Leslie Kramer, contributor at Investopedia and author of ‘How to Reach a Prospect Who Already Has an Adviser’ highlighted how to gauge interest in a potential client who already has an adviser.

In part two we take a look at other topics you should address when talking with a potential client.

Evaluating their strategy

Kramer mentions that you may also want to introduce the notion that it is difficult to make sure that one’s money does not run out during the retirement years. “Find out if the person feels secure that the adviser has come up with a strategy to best avoid this scenario from happening. Also find out if the current adviser is really helping the client achieve all goals. Does he feel he could be getting more from the adviser, in terms of setting up a secure retirement plan and monitoring all of his investments? Has the adviser sat down to write out a solid financial plan he's happy with?”

“Again, offer to have a sit-down with the client to go over his/her portfolio, if he/she would like a second opinion or if he/she is unhappy with the current financial plan. Even if the person ends up sticking with the current adviser, he/she may still consider working with you in the future or recommending your services to a friend,” says Kramer.

The tax burden

Tax strategy is another good topic to broach with a potential client, says Kramer. “Find out if the prospect’s adviser is working to ensure that his tax burden is the lowest it can be. Is the client worried that he may be paying more taxes than necessary because his adviser is not up-to-date on all the current strategies? Has the adviser spoken to the client about using different tax strategies for before and after retirement age?”

“You may also want to find out if the potential client feels good about his/her current life insurance and long term care insurance policies. Has the adviser recommended that the client talk to an insurance agent or has he made his own recommendations about insurance? This is another area where you may be more knowledgeable than the person’s current financial adviser.”

Rebalancing the portfolio

Another topic you should address when talking with a potential client, according to Kramer, is the strategy for rebalancing his/her portfolio and reviewing asset allocations.

“Has the current adviser taken the time to review the topic? Have they talked about ways to reduce volatility and make sure his/her portfolio will be protected in a down market? If the potential client is unclear about the answers, you may want to offer to sit with him/her at some point to explain how rebalancing for volatility may impact a portfolio and how returns can change drastically depending on asset allocation.”

The bottom line

Kramer says you should never write off potential clients just because they are already working with a financial adviser.

“People change advisers all the time. Try to engage the person in a discussion about the current adviser’s performance. Ask pertinent questions and show the person your value as an adviser and as someone he or she may want to work with in the future or recommend to a friend,” concludes Kramer.

In building solid customer relationships it is important to understand what consumers want and expect. In today’s more demanding and customer centric world, revamping customer service is essential to maintaining long lasting client relationships. The key is to balance the customised and impersonal service that is delivered. Clients want their lives made easier. When they present a problem you need to have a solution and fix it. This is the basic and most common need.


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