5 Business Growth Strategies for Financial Advisors
Rebecca Lake, CEPF®
7 min read
Growth is sometimes an elusive goal for financial advisors. You want to expand your client base and increase revenues, but the path forward isn't always clear. If this sounds familiar, it's important to understand that you don't have to stay stuck in a rut. Studying financial advisor growth strategies can help you chart a course to building a sustainable, thriving practice.
Successful advisors recognize the importance of being able to grow and evolve to remain competitive. Advisors who make a concerted effort to grow their book of business or expand the range of services they offer have an advantage over firms that are content with the status quo.
One of the realities of being an advisor in the 21 century is that prospective clients have a wide range of options. It's never been easier to find a financial advisor. All an investor needs to do is type "financial advisor near me" into their favorite search engine, and they'll get instant results.
The challenge for advisors is finding a way to stand out from the crowd and connect with the people they're best equipped to serve. A comprehensive growth plan can help you achieve your goals, whatever they may be.
Financial Advisor Growth Strategies That Work
A financial advisor reviewing a growth strategy for his firm.
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Growth strategies for advisors often come down to common sense and asking yourself what you're doing now that is or isn't working. These growth tips are designed to help you break through barriers that may be holding you back from elevating your business.
1. Narrow Your Scope
Offering the right services to the right people is one of the most important keys to business growth, regardless of industry. For advisors, this means choosing a specific niche that you want to target.
How does niching down facilitate growth? In several ways:
Working with a narrower category of clients enables you to better understand their needs, goals and concerns.
Attracting clients who are aligned with your values can potentially lead to better retention rates.
It becomes easier for prospective clients who are searching for the type of expertise you have to find you.
The key is not only choosing the right niche, but also getting to know it inside and out. That comes from actively listening to what clients have to say, empathizing with their challenges and developing tailored solutions that meet them where they are while getting them where they want to go.
2. Refine the Client Experience
Improving client experience can improve retention and drive more referrals your way. Both are critical to growth. So, why do clients leave their financial advisors? The reasons are varied, but a poor experience frequently tops the list.
Some of the most common client turn-offs include:
Advisors who take too long to respond to phone calls, emails or texts
Rudeness or advisors who don't seem to listen to what they're saying
Fees that are not justified by the value they're receiving
Technology that's lacking (for example, not offering a client portal could be a dealbreaker for some investors)
Consider how your clients perceive the experience they have in working with you. Is it the best it could be? Why or why not?
One of the best ways to tune into this is to ask your clients to complete an anonymous experience survey. This is an opportunity for them to provide honest feedback about what they like about your business and where you could improve.
3. Expand Your Services
Broadening the range of services you offer, within your chosen niche, can drive revenue growth if you're increasing sales among current clients or attracting new ones. The key, however, is developing an offer that current or prospective clients will want.
Look at what you currently offer and consider these questions:
What needs are you meeting for your clients right now?
How are your clients' needs likely to evolve as they move through different life stages?
Are there service gaps that you could address with a new offering?
How much would a new offering cost to implement, and what is the expected return on investment?
What is the most effective way to promote this new service? For example, would it make sense to offer it as an a la carte service or package it with existing services?
This is another scenario where talking to your clients can prove exceptionally helpful. You can ask clients one-on-one what services they might be interested in or have them fill out an anonymous survey to gauge where the opportunities may lie.
4. Leverage Partnerships or Collaborations
Building strategic partnerships can be one of the most effective financial advisor growth strategies if you're willing to invest the time in making connections. Partnerships can fuel growth if you're gaining exposure for your business among new audiences of people who could benefit from your services.
Collaborations may involve other financial advisors, financial influencers or other professionals in the financial services space. Some of the ways you might promote your business include:
Appearing as a guest on an investing podcast to discuss a topic that's specific to your niche
Participating in an advisor roundtable discussion, panel or online seminar that's marketed to your target audience
Developing spheres of influence with estate planning attorneys, CPAs or other financial professionals to exchange referrals
The best part about collaborations or partnerships is that often, they don't cost you anything other than your time. You can promote your business without draining funds away from your marketing budget.
5. Mold Your Marketing
Successful advisors know that marketing is essential for growth, especially if your business is still in its infancy. Without active marketing campaigns, clients may have no clue that your business even exists.
Driving growth through marketing goes back to understanding your niche and what type of messaging is most likely to resonate with them. It also means understanding where and how they typically consume marketing content.
Some of the most effective ways to market online include:
Advisors can also market offline through direct mail, billboards, print ads or in-person events such as seminars or workshops.
Look at your marketing plan. Where do you devote most of your time and resources? What kind of conversion rates are you seeing for your efforts?
Asking these kinds of questions can help you drill down to which marketing channels, either online or offline, are delivering the best or worst return on investment. It's also helpful to study marketing trends for your niche's demographic to better understand how they interact with different types of campaigns, and what drives their decision-making in choosing an advisor to work with.
Bottom Line
A financial advisor growth strategy can help you move your business forward.
The financial advisor growth strategies outlined here are designed to spark inspiration and get you thinking about what you can do to move your business forward. As you develop your growth plan, consider how you'll track your progress. Using key performance indicators (KPIs) can give you a sense of whether your strategy is beginning to pay off.
Tips for Growing Your Advisory Business
Leveraging technology tools can help you streamline your business growth and free up more time to devote to your clients. If you're looking for a way to simplify marketing, you may consider partnering with a platform that's designed to help you grow. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
Referrals are one of the best ways to grow your business without actively marketing it. The secret to gaining more referrals from your existing clients is to wow them with superior service. You can also encourage more referrals by hosting client events to show your appreciation.
