Clients are the lifeblood of every practice and key drivers of assets under management (AUM) and revenue growth. Our study showed that practices that made client acquisition a focus and utilized marketing-based strategies gained a greater-than-average share of new clients and achieved higher-than-average growth. Yet, the average practice relies on referrals for 86% of its new clients and engages in limited marketing activity. And despite minimal acquisition-oriented marketing activity, respondents expected new clients to be a primary growth driver.
Certain products and services are “table stakes” offerings for all practices. But our study confirmed that practices offering a broader range of services tied to the long-term goals of clients and their families — from tax planning, to estate planning, to serving multiple family generations — grew faster than those that did not. One key offering correlated to high growth was retirement plans, as practices with significantly higher-than-average shares of their AUM in them grew faster.
Products and services offered directly through practice
While it may come as no surprise that advisors are dedicating 80% of their time to client and investment management, our findings indicate that allocating more time to practice management leads to higher growth. Seeking areas of efficiency – through technology, model portfolios, processes, productivity tools and team building — and focusing on the highest value activities leads to higher growth practices.
Share of advisors who set defined and measurable goals in the following areas
- Client acquisition strategies
- Enhanced service offerings
- Technologies to help you scale
- Marketing tactics that set high-growth practices apart
- 5 steps on your pathway to growth
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