Pershing

Delivering High-Touch Service to the Affluent Investor

Issue 13, 2010

Becoming a successful wealth manager is all about service—providing top-notch, in-depth advice to affluent investors. Indeed, it is the quality of your interactions and how you deliver comprehensive services that will set you apart from other financial professionals.

That’s easier said than done, however. To create an effective and high-quality service strategy, consider these steps:

Choose Relationship Managers

Assign a lead professional in your practice to each relationship. As the primary point of contact, that individual should regularly meet with the client; understand his or her full financial picture; and ensure that his or her needs are met and exceeded whenever possible. Depending on the situation, clients will ultimately work with other professionals at the firm; however, the relationship manager should make sure all of the pieces of the puzzle fit together—that all necessary activities related to the client are not only being performed well, but at the highest level possible.

Limit Your Client Base and Set Expectations

Delivering high-touch, customized service takes time. For that reason, you’ll need to limit the number of clients your practice serves. Generally, that involves actively managing between 50 to 100 relationships. For those clients who don’t meet your target requirements, you will need to find an alternate service model or perhaps refer them to other, well-respected investment professionals. For those relationships you intend to continue to cultivate, you will need to set expectations regarding your value and service promise and set up an infrastructure to support them.

Create a Client Segmentation Strategy

Even with a smaller client base, you won’t be able to offer the same level of service to everyone. To determine what’s appropriate for each client, create a client segmentation model that will help you pinpoint the right level of service, pricing and products based on client needs, suitability and profitability to your firm. Remember: As you develop your strategy, make sure to align the cost of service with the potential revenues from each relationship.

Start the process by determining the primary driver(s) for segmentation—total net worth, investable assets or total value or potential total value of the relationship. Consideration factors may include the number of referrals, growth potential, and multi-generational connections. After identifying the primary driver(s), you can create client groups by dividing them into “A”, “B” and “C” segments. Then develop the specifics, such as how frequently you’ll meet and the other services you’ll provide for each client group. You’ll probably get together more often with an “A” client than a “B” client. However, when determining the number of meetings also consider not just the number of meetings, but the form that interaction will take—the number of in-person get-togethers vs. phone updates, etc. No matter what segment clients fall into, it’s imperative that you provide all of them with a high level of customized service and attention that their particular needs warrant.

The bottom line: becoming a successful wealth manager requires the ability to deliver high-quality service and advice through a disciplined strategy. It can’t be the same for every client, but it must meet their needs and expectations.

To learn more about building a successful wealth management practice by creating an effective client service strategy, please request a copy of our guidebook, Integrated Wealth Management: An Investment Professional’s Guide by e-mailing marketing@pershing.com

For Professional Use Only.