A Behaviorally Smart Way to Choose Clients

In order to build a behaviorally smart practice, you need to start at the very beginning: choosing the right clients that are matched to your own unique personality.

Every advisor understands the demographics in defining their ideal client. You define your niche and minimum account size and begin your marketing efforts.

But the marketing world is changing.? Your prospects can thoroughly research you via your website, your blogs, LinkedIn profile, and Twitter account.? They have an idea of who you are and whether they want to work with you before they even have their first appointment with you!

So while the prospect may meet your minimum account size and fall into your niche market, you might be missing the one key ingredient to the success of your long-term relationship: the behavioral traits of the client.

Customer Segmentation

Defining the behavioral side of your target client needs to be an integral part of your onboarding process. Consider this research fact shared at the 2013 LPL National Conference: most advisors get 70% of their business from their top 20 clients yet risk losing them by under-focusing on them.

You need to define the very specific behaviors of the clients you wish to serve and then have a tool to objectively discover those behaviors. As intuitive as you might be, you need to eliminate the guesswork. This is the only way you can create an engagement plan to focus on each unique client.

Then, armed with your own behavioral discovery, you have three choices:

  1. Adapt your style to the clients behavioral style.
    This can be done but realize it may take a lot of effort on your part with those clients that have a very different style to you, and may be difficult to sustain past the honeymoon period in the relationship.
  2. Refer this client to another team member with a similar style.
    In the short run, it may cost you money but in the long run, it may be better for you and the prospective client. This is especially when you hit the stressor points in the relationship when a person reverts back to their core natural instinctive personality (i.e., no more party face).
  3. Consciously choose to define and work with those styles that are easier for you to manage.
    Define the behavioral style upfront in your ideal client profile.? And only work with those relationships that fall into those parameters.

Set yourself up for success from the start. Choose the right behavioral qualities in your clients to ensure that your sales, marketing and service process will create unique experiences for your valued long-term relationships.

Peggy Mengel ? Vice President, Human Behavior Solutions Advisor at DNA Behavior

Specializing in financial services, Peggy uses behavioral intelligence to help businesses navigate human differences to unlock performance potential. DNA Behavior helps grow behaviorally smart businesses and financial advisors worldwide to increase competitive advantage using the most reliable behavioral discovery and performance development systems on cutting-edge technology platforms.

Visit the Financial DNA website to learn more about building client engagement in the financial planning process.

Peggy Mengel

Peggy Mengel - Business Coach - The Biz Sherpa

As CEO and founder of The Biz Sherpa, I coach and consult with executives on developing deep and strong relationships with clients, staff and most importantly, themselves. When you align your talents, passions and strengths with a strategy that fits your uniqueness, you will transform yourself, your client experience and your business.

Throughout my career, one my driving principles is to understand people before numbers. It is this philosophy that ignites my desire to help financial services firms meet the challenge of driving results through a behaviorally based strategy.

How can your firm balance the demands of effectively managing people and maximizing profits? Start building business from the "inside-out" with a coach who understands your industry and your challenges.

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1 Comment on "A Behaviorally Smart Way to Choose Clients"

Iain Swanston
4 years 6 months ago
After I first learned about behavioral styles I did a quick audit of all my clients. All of them matched my own style - furthermore the clients I had lost over the years were all different styles. I now actually test my clients in advance so I know how I can best communicate with them.