Business Success Starts with Client Success
How to identify and serve your ideal clients
Survival requires prioritization: knowing which things to do first can have a great impact on your likelihood of making it out of the woods and onto your next adventure. In business, moving from a survival mindset to thriving means putting others’ needs before your own. The RIAs who have achieved sustainable growth have identified their ideal clients, studied what motivates their financial behaviors, and built practices around supporting their financial goals.
Exploring Your Client’s World
Putting clients first can have a major impact on an RIA’s organic growth potential. In fact, a client-first mentality is what many advisors say draws them to the RIA space. As one of The American College of Financial Services’ FinServe Network Ambassadors says:
“I think we're going to see more and more advisors moving into the independent RIA space… because it allows us the flexibility to give clients more options when it comes to how to be financially successful. We're not going to be pigeonholed in any one direction. And honestly, I think that's what we need. We need to be able to give clients a breadth of options available to them that meet their specific needs and goals… Clients are not cookie cutter—and we have to be able to diversify not only their investment portfolio, but their solution portfolio to be successful.”
— ANGELA RIBUFFO, CFP®, RICP®, ChFC®, WMCP®, CDFA®, CLTC®, RAION FINANCIAL STRATEGIES, LLC
— ANGELA RIBUFFO, CFP®, RICP®, ChFC®, WMCP®, CDFA®, CLTC®, FINSERVE NETWORK AMBASSADOR
Clients are not cookie cutter—and we have to be able to diversify not only their investment portfolio, but their solution portfolio to be successful.
Positioning Your Value to Your Ideal Clients
Which clients are the ideal fit for the business you’re building—and what can you do for them? This isn’t about daydreaming (although we encourage that too). It’s about detailing and documenting who they are and what you want your business to be able to do for them.
About eight in 10 (79%) of the top-performing advisory firms have documented their ideal client profile (ICP).4 An ICP includes data-based descriptions of the client that would be the best fit for your firm, including: any relevant demographic details, common pain points, aspirations, and services sought. With this information, you can put yourself in their world and develop approaches to serve them with suitable education, guidance, products, and services.
ICP Got You Stumped?
Start with information gathering. Some established advisors examine data about their current best clients—the ones with raving reviews, referrals, and repeat business. Others who are just getting started might use public information available online or connect with local business owners to research potential market segments in their region (such as top employers, prevalent industries, or town or city demographics).
The ICP helps inform your client value proposition (CVP): this document starts with a clear statement of what you offer to your ICP that makes your firm measurably better than any alternatives. Part of this exercise may include providing a solution for each major client pain point, a support structure to help them reach their goals and aspirations, and a service delivery approach that fits their communication style and other preferences. The majority (76%) of top-performing firms have a documented CVP.
How Top Firms Focus on Ideal Clients
% RIA Firms Using Core Marketing Tools
Ideal Customer Profile (ICP)
Client Value Proposition (CVP)
The top-performing RIA firms leverage ICPs and CVPs to ensure their services align to clients’ needs and goals. Together these tools form the foundation of an effective marketing strategy.
2023 RIA Benchmarking Study from Charles Schwab, fielded January to March 2023. Study contains self-reported data from 1,300 firms. Participant firms represent various sizes and business models categorized into peer groups by AUM. Top Performing Firms are those that rank in the top 20% of the Firm Performance Index. The index evaluates all firms in the study according to 15 metrics to arrive at a holistic assessment of each firm's performance across key business areas.
Ready to Explore?
An adventurer might track their journey in an adventure log, which will become the basis of survival tips as well as observations, memories, and inspiration for their next outing. An RIA who wants to thrive in the wild world of financial services can use the ICP and CVP as part of their adventure log—capturing their best insights about their clients and documenting how best to position their services.
A Legacy of Industry Leadership
Founded in 1927 by financial services education pioneer Dr. Solomon Huebner, The American College of Financial Services has a rich history in financial services education—standing strong as the standard-bearer for academic quality.
As we approach 100 years of academic excellence, we hope that you leverage all the opportunities The College has to offer. By taking part in The College’s recertification program, you’ll be joining us on the front lines as we march the financial services industry toward a future that benefits more Americans and allows us to change more lives.
Your Life's Work
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The American College of Financial Services provides equal opportunity to students and employees, regardless of race, color, and national or ethnic origin. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
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