As a personal financial advisor, you know that a significant part of your job is to continually increase the number of assets under your management. Adding new clients to your practice and accumulating new assets from existing clients are two key ways of doing this. However, in today's fiercely competitive financial services marketplace, it has become increasingly difficult for advisors to stand out from the competition.

Planning is critical to marketing your services. In a recent online survey of financial advisors, many respondents blamed a lack of priority as much as a lack of time for inadequate planning. Defining a target market, developing a marketing plan, and identifying the most effective sales channels are all critical planning activities — and they are not one-time activities. No matter how successful you are, you need to regularly evaluate your strategy for servicing clients while also focusing on business development. So, prior to making that next sales call, consider whether you have the following:

•   Clear definition of your value proposition

•   Comprehensive marketing plan

•   List of sales channels

•   Strategy for converting prospects into clients

•   Client service plan

Define your value proposition

Before developing a marketing plan, you need to define your value proposition. This should clearly demonstrate to a client what sets you apart as a financial advisor. When crafting a value proposition:

• Articulate what makes your firm unique A concise statement delivered with confidence inspires trust from clients and prospects alike.

• Describe who you are and what you have to offer Attempt to make an emotional connection with clients. People are more likely to do business with someone who they can relate to.

• Define why you believe in your service Clients want to feel confidence in you.

• Describe how your service works What steps will you take to manage a client's account?

Develop your marketing plan

After you have clearly defined a value proposition, you can begin to develop a marketing plan. One of your first steps is to identify your target market. Doing so focuses your marketing approach and ensures the effective allocation of resources, marketing dollars, and advertising campaigns. A well-defined marketing strategy takes into account factors such as age, income, profession, life style, cultural interests, and geographic location.

Identify your sales channels

Having developed your marketing strategy, you need to evaluate your sales channels. Success rates are low for most methods, so it's important to employ several different techniques to generate leads.

Referrals These are the most cost-effective and reliable method of gaining new prospects. Referrals most commonly originate from satisfied clients who refer friends, relatives, coworkers, and so on. Distributing personalized newsletters for clients to share with friends and family is an effective approach to seeking referrals. Another excellent source of referrals is through relationships with other professionals such as accountants and lawyers.

Cold calling The ratio of leads generated to number of calls placed is low, and yet cold calling is still the most common marketing technique among financial advisors. Because customers are generally apprehensive when they receive cold calls, stress that the goal of the call is to introduce yourself, your company, and your service offerings. Your introduction should be concise and crafted to generate interest.

Seminars These are a great way to get the undivided attention of a number of potential clients. In addition, events for existing clients and prospects, such as golf outings and dinners, provide an opportunity for you to begin building lasting relationships in a comfortable setting.

Media and public relations Positive press coverage can significantly improve your credibility and prestige. In addition to being an inexpensive way to reach a large number of potential clients, this exposure can be very useful in future marketing campaigns. Radio, television, and newspapers are common media that often require input from subject matter experts.

Convert prospects into clients

An elaborate marketing strategy will not be effective without a thoughtful plan in place to convert leads into new business. Although many prospective clients are informed investors, there's often a significant knowledge gap between financial advisors and clients regarding investments, insurance, and tax implications. When presenting a proposal to a prospective client, remember to:

• Educate the client about the services that you and your firm provide.

• Describe how your investment plan might differ from those put forward by other firms.

• Clearly explain the rationale behind a particular investment plan.

• Explain the processes of risk assessment, asset allocation, and diversification.

• Review the benefits of balancing long-term objectives with short-term market conditions.

• Get the client's agreement to implement investment recommendations.

Maintain a client service plan

It's essential to maintain a core base of very satisfied clients. Doing so ensures that retention rates remain high and leads to new prospects. Satisfied clients are one of the best sources for new referrals.

Like all advisors, your goal should be to provide exceptional client service. To do this effectively:

• Call clients frequently, especially in a rough market.

• Proactively manage a client's investment return expectations as well as the client's time horizons.

• Meet clients periodically to conduct performance reviews.

• Maintain constant communication through newsletters, e-mail, and personalized letters.

• Notify clients promptly when events arise that might impact their account.

• Conduct client satisfaction surveys to identify areas for improvement.

Remaining focused is critical when growing a financial advisory practice. Although generating new business might be more profitable in the short term, your long-term success as a personal financial advisor depends on forging lasting relationships with your clients.

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