For nearly three years you’ve been hearing from me on the need for a client type approach to new client acquisition.  We are in the midst of a massive shift in generational wealth and Wealth Management firms need to be ready for the millennial-like client who will be looking for their own brand of relationship with you. Those in client facing roles must shift their focus – private client advisors on whole are not achieving their appropriate share of wallet with clients, relying too heavily on AUM and pressing issues of the day. I actually write about this in my book Taming the Four Headed Dragon – current clients, compliance and events are crowding out the time needed for a dedicated prospecting effort.
 
So to make things easier (As BWST always does), I've provided a window into six client types. Each come with their unique problems or aspirations not yet met. I've also provided some nuances to be mindful of when surfacing opportunity during your prospecting. The first set of client types will be those associated with CREATED wealth. (Part 2 will address prospects associated with INHERITED wealth). Source of wealth is hugely important when making connections with HNW prospects:
 
Client Type #1 - The Serial Entrepreneur
Potential Problem Areas

• Always putting capital back into the business
• Low liquidity; need for credit to build the business
• Has not addressed wealth transfer
• Perception that there’s no time, light on planning

Prospecting Opportunity

• Give them permission to take care of their future and the family
• Recommend retirement, education funding, real estate investments
• Know that they’re always looking for the next investment, be ready with ideas
• Secure financing options for expansion

 
Client Type #2 - The Mature Business Owner
Potential Problem Areas

• Often concerned family is not interested in carrying on in the business.
• Ideas to scale or exit the business; use of proceeds
• Unclear around business succession planning
• Hesitant to take money out of the business, release control
• Uncoordinated team of advisors

Prospecting Opportunity

• Sell a coordinated team of advisors and the full firm
• Commercial banking to manage the balance sheet of an entire family business
• Structuring support: title, contracts, controls
• Next generation planning
• Credit

 
Client Type #3 - The C-Suite Executive
Potential Problem Areas

• Concentrated wealth (in their company stock)
• Many ask if they're giving enough away
• Information overload
• Liquidity events that don't signal the market
• Taxation of stock options
• Volume restrictions

Prospecting Opportunity

• Emotional distance and discipline
• Legal support
• Risk Planning
• Coordinated advisor team
• Philanthropic advisement, board recommendations

For more ideas to support an effective client-type prospecting strategy with High Net Worth individuals, sign up here for a link to the corresponding chapter in my book, Taming the Four Headed Dragon (https://www.4headeddragon.com)

The Differentiator in Retirement Relationships: Be a Value Creator 
Most Account Management training has been available for over 20 years. But business has changed as have the expectations of clients in Retirement. The record keepers that command the lion's share of the plans in the Fortune 500 all deserve a seat at the table. But a rare few keep it year in and year out. The ones who do- they are the value creators. 
 
High performing Retirement relationship management teams are taking a value creation approach to clients - an approach that speaks to the need to offer insight over product and service virtues. These firms are on a mission to avoid heading down a commodity path in their respective sectors. 
 
Research from the Sales Executive Council and Harvard Business Publishing speaks to the need to trade on the insights RMs bring to multiple stakeholders, rather than acting reactively with one "buyer". With the help of Bill Walton Sales Training, these value creators are moving farther upstream in their client's business strategy and planning. They're leveraging genuine curiosity and insight as retention tools, and conducting better conversations with key stakeholders as a result.

There is great upside in celebrating the role of the RM in Retirement. RMs have an opportunity to deepen conversations with their HR partners – partners that need to create value for their own organizations beyond benefits. An opportunity exists for a common language among RMs to create value for clients and drive ideas that support mutual objectives.

Here are a few recommendations for those looking to create a legion of value creators in their organization:

• Create a balanced client interaction grounded in insights valuable to CFOs,  HR Heads, and Benefits Managers. Don't forget the Benefits associates that never go home on time. 
• Steep yourself in the jobs of key stakeholders. Google their job descriptions to see what truly keeps them up at night (so you don't ever have to ask that question).
• Practice conducting engaging and focused discussions about business pressures and drivers - pressures and drivers your solutions can potentially remedy. 
• Proactively build business issue-specific, value-based relationships with “Accountable Executives” in accounts. Accountable Executives are the true "intrapreneurs" in the organization - they get stuff done and love developing people. They're the leaders people want to work for. 
• Get clients to view your RMs as industry "thinking partners". Create the wonderful confusion among stakeholders so they wonder if your RMs actually work for the organization!  

​To grow more value creators in your organization, send me at note at bwalton@billwaltonsalestraining and I'll send you a fresh copy of our new whitepaper titled The Era of the Value Creator.