Advisers should not be distracted by current-day trends if it means they lose sight of the fundamentals involved in developing the right client base. This is the latest message from US-based consultant, Claudio Pannunzio.

Speaking at a recent adviser forum, Mr Pannunzio, Founder of the i-Impact Group, told his audience that some financial advisers continue to seek the newest and latest processes to attract new customers when the process is still a basic exercise that simply requires the creation of an ideal client profile.
… the creation of an ideal client profile is similar to the process employed by leading marketers around the world
“Too often, in their quest for new clients, advisers seem to restrict their focus primarily on the investable asset. Using assets as the main gauge and failing to establish the type of client he/she truly enjoys working with … leads to frustration and disappointment,” he said.

Mr Pannunzio added that the creation of an ideal client profile is similar to the process employed by leading marketers around the world. “The process is called creating a buyer persona – a fictional representation of an ideal client based on demographics, online habits, personal hobbies and a series of educated speculations about their motivations and concerns.”

He suggested advisers ask themselves these questions in their search for their ideal client:

• What needs are they seeking to satisfy?
• What are they concerned about?
• What do they expect from a product?
• Do they have specific interests and/or hobbies?
• What motivates them to favour a product or service over another?
• Where do they get support and information for their purchasing decisions?

Once the adviser has the answers to these questions, Mr Pannunzio advocates a series of steps the adviser can follow in order to create the ideal client profile:

1. Review the current portfolio of clients to single out the top five to ten clients. Identify if they share a common denominator, and think about how they became clients.
2. Demographics – define the age range and profession of the ideal client and how best to relate to them.
3. Create an image of the ideal client’s short-and long-term goals. This includes the type of risk protection or portfolio and asset allocation required to match their lifestyle and financial dreams and needs.
4. What are the ideal client’s personality traits? Knowing the type of personality traits that the adviser best enjoys interacting with will exponentially increase the odds of attracting the ideal client.
5. Define the type of hobbies and interests that the ideal client pursues. This will enable the adviser to create specific marketing initiatives tailored to the client’s interests that will have a strong impact and be highly appreciated.

“Creating an ideal client profile can be an exercise as detailed as you want… I highly recommend that advisers take this exercise seriously and make it the foundation of their prospecting process”, said Mr Pannunzio.