Charles Paikert
March 30, 2020, 5:02 p.m. EDT
Can financial
advisors achieve net organic client growth in a time of crisis?
Yes, RIA
executives say: by deftly handling inbound inquiries and judiciously
strategizing outbound marketing and prospecting.
Unhappy wealth
management clients from big banks are the source of many incoming calls to
Cresset Asset Management, an RIA catering to high-net worth and ultra-high-net
worth clients in Chicago, says co-chair Doug Regan.
“It’s a
numbers game,” Regan says. “The banks just don’t have the staff to handle the
number of clients they have.”
Wescott
Financial Advisory Group is getting inbound traffic during the coronavirus
crisis “from people who feel abandoned,” says Grant Rawdin, CEO of the
Philadelphia-based firm. “Some aren’t getting serviced, some are upset over
performance and others don’t have a financial plan.”
Keebeck Wealth
Management in Chicago is also getting an unusually high volume of incoming
calls that fall into three categories, says founder Bruce Lee.
Working from home in Chicago, Keebeck Wealth Management founder
Bruce Lee has been fielding a higher-than-usual volume of calls.
“There are
individuals who are too highly levered and are trying to figure out how to
delever,” Lee says. “The crisis has also caused some who aren’t happy with
their current advisor to think about changing advisors. And we’re also hearing
from clients who have been sitting on the sidelines with cash or fixed income
who want to discuss what to do now.”
Firms are
handling these inbound calls in a variety of ways.
By being able
to take care of current clients efficiently, Rawdin says, the firm can “take
all comers” making inbound inquiries. Lee says he made sure to hire enough
staff to handle the increased volume of calls. “We can double the size of our
business without more hires,” he says.
All inquiries
coming in to Buckingham Strategic Wealth in St. Louis must receive a response
within an hour, maintaining a longstanding firm policy, says the firm’s
chairman Justin Ferri.
Boulevard Family Wealth is offering prospects pro bono advice
during the crisis.
In addition to
launching a new website to handle questions about volatile markets during the
coronavirus crisis, the RIA is also loosening restrictions on informational
resources.
“We’re opening
up access to prospects for the same information we’re providing to clients,”
Ferri says. “That’s generating a lot of additional inquiries.”
In Los
Angeles, Boulevard Family Wealth is taking that idea step further, offering
prospects pro bono advice during the crisis.
“We’re calling
people who have called us in the past,” says managing partner Matthew Celenza.
“We’re asking them how they’re doing and if we can help. They’re glad to hear
from us now and think they’ll remember us when the crisis is over.”
Boulevard is
also using public relations, marketing and LinkedIn to attract new clients
during the crisis, making sure the firm doesn’t appear as if it’s boasting,
says Celenza. And Boulevard is issuing white papers on areas the firm
specializes in, such as trusts and estates and insurance.
We’re hosting virtual happy hours to connect with centers of
influence.Justin Ferri, chairman, Buckingham Strategic Wealth
Most firms say
they are reluctant to do cold calling during a time of crisis, especially one
triggered by health concerns.
“We would not
be reaching out to people who didn’t reach out to us first,” says Rawdin. “That
would be in poor taste.”
Keebeck’s Lee
agrees.
“This is a
very personal period of time,” he says. “When it comes to prospecting, I don’t
want to be ‘that guy.’”
In keeping
with the spirit of the social distancing era, Buckingham is using Zoom to reach
out to prospects and centers of influence such as estate planners, CPAs and
attorneys.
“We’re hosting
virtual happy hours to connect with centers of influence,” says Ferri. “It’s a
way to connect and share ideas and best practices. And it’s resulted in some
meaningful engagements.”
Charles Paikert Senior Editor, Financial Planning
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