Know Your Numbers; Know Your Business

by | Aug 29, 2022 | Blog

Advisors keep hearing about the “great wealth transfer” that will take place over the next 20 to 25 years. The amount transferred has been reported as high as $68 trillion. With an aging advisor and client base, there are easy ways to help minimize the wealth transfer impact on you and your business.

Know your numbers:

  • What percentage of your clients are over the age of 70?
  • What percentage of your clients are connected through family or friends?
  • How often do you contact your client’s family?
  • Do you include both partners in financial discussions or have an ongoing relationship with just one?

While these are separate questions, the answers are intertwined when it comes to developing and maintaining a relationship with your clients, their family and friends, and their accounts.

One way to know and understand your numbers and find answers to the ongoing wealth transfer is by segmenting your book of business. The data should be easy to access, depending on the data you collect in your CRM and your company’s account information. Focusing on the following will give you the answers you need:

  • Client age
  • Household AUM and revenue
  • Household potential revenue
  • Advocacy (the client’s propensity to refer you to their friends and family)
  • Contact with spouse/partner/family members/beneficiaries within the past 12 months
  • Planned activity with spouse/partner/family members beneficiaries within the next 12 months
  • Employer
  • Hobbies and interests

Putting together the segmentation information above takes time and commitment. The results could mean the difference between maintaining your client base and being on the wrong side of the “great wealth transfer.”

At Financial Advocates (FA), our Business Consulting team collaborates with advisors to help acquire their numbers and develop a plan. FA uses use Truelytics™ TruePerformance combined with the segmentation information referenced above to help ensure a robust look inside the advisor’s business, allowing insight into the current opportunities.

Understanding your numbers is just the start of the journey. Knowing the whole family and those who influence financial decisions is also important. The next Financial Advocates blog will focus on learning and understanding the needs of the entire family, and our future blogs will focus on family influencers.

To learn more about the benefits of knowing your numbers, check out our Marketing blog: Now That You Know Your Numbers, Find Your Marketing Opportunities.