Lead generation is integral to growing a thriving practice, but converting prospects to clients isn’t always a given. Successful advisors understand that getting a potential client’s attention is only the first step, and closing the deal takes much more than that. It’s necessary to have an effective conversion strategy to expand your book of business.
Ready to grow your client base? SmartAsset AMP helps you connect with leads.
Understanding the Prospect-to-Client Pipeline
A sales pipeline represents the journey someone takes in moving from lead to prospect to client. Financial advisors may have a sales pipeline that looks something like this:
Lead generation –> Prospect qualification –> Initial meeting –> Proposal –> Close
Leads are the people at the top of the pipeline who might be aware of your business and brand but haven’t yet expressed an interest in your services. Prospects are further down in the pipeline; these are leads you’ve qualified as being in buying mode.
Qualifying prospects is easy, but getting them to the closing stage is often the real challenge. Prospective clients may suffer from information overload, given the number of advisors they may have to choose from. That’s where a conversion strategy comes in.
Converting Prospects to Clients
Gaining more clients for your advisory firm doesn’t require secret knowledge. Success more often hinges on applying strategies and tactics that are proven to work.
With that in mind, here are some of the most effective ways to close sales and convert prospects to clients.
1. Clarify Your Message
One of the biggest marketing mistakes advisors make is letting their message get lost in translation. Prospects are more likely to gravitate toward your business when they’re easily able to grasp:
- Who you are
- What you do and who you serve
- How you can help
Your marketing plan should be designed to speak to your target niche with messaging that’s consistent and aligned with your brand. The goal is to make your firm “sticky” in the memories of prospects so that when they’re ready to buy, your business is top of mind.
2. Encourage Engagement
Prospects are more likely to become clients when they feel connected to you. Engagement is key to building those connections.
Client engagement begins with the first contact. And your approach to engagement may be shaped by that contact.
For instance, say someone joins your email list to gain access to your lead magnet, which is a 10-step retirement planning checklist. You follow up with an email asking them to share their biggest retirement planning concern.
Engagement can help you gain prospects’ trust while giving you opportunities to demonstrate your credibility and expertise.
3. Listen, Then Ask Questions
Active listening is a critical soft skill for financial advisors. Prospects are less likely to become clients if they feel they’re not being heard.
As you meet with clients, focus on being present. Listen to what prospects are sharing and reflect it back to them by rephrasing. This not only demonstrates that you are listening, it’s also an opportunity to clarify their statements.
When asking questions, avoid ones that only require a simple yes or no answer as much as possible. Questions great financial advisors ask are almost always open-ended, meaning they give the client room to share more of their thoughts or feelings.
Some potential questions to ask in your initial meeting include:
- What’s your biggest financial concern right now?
- Where do you feel that you need the most help with your financial plan?
- What solution or outcome are you looking for in addressing that challenge?
These kinds of questions keep the conversation flowing and allow you to gain more insight into: A) what the issue is and B) whether you can help.
4. Emphasize User Experience
Prospects who are actively looking for an advisor to work with may be put off by a sales process that’s clunky or slow. Offering a stellar user experience from start to finish can help your firm stand out and encourage higher conversion rates.
Here are some ways you can encourage a positive experience for prospects.
- Review your advisor website to make sure that it’s easy to navigate and that your contact information is easily accessible.
- Give prospects multiple ways to contact you and respond promptly to communications using their preferred method.
- If you’re using email newsletters to stay in touch with prospects, focus on value so that they have a reason to open them and don’t bombard their inboxes with too many messages at once.
- Be as transparent as possible when answering questions related to your fees and services.
- Simplify the new client onboarding process with automated tools that allow prospects to complete the steps online, at their convenience.
5. Follow Up Strategically
Once you’re on a prospect’s radar, you want to stay on it. Following up is the simplest way to do that, but it’s important to approach it in the right way. You don’t want a prospect to feel pressured or worse, annoyed, as that could scare them away.
Some of the ways you can follow up include:
- Email newsletters (again, ones that are packed with value) that include a brief note reminding prospects to reach out to you if they have questions or are ready to take the next step
- Phone calls and texts, but only if the prospect has indicated that they’re comfortable with those communication methods
- Direct mail
How often should you follow up? That’s a tricky question, as you don’t want to come off as bothersome or needy. Marketing experts typically recommend following up three to six times within the two weeks following initial contact, but you may need to adjust the frequency to reflect your prospects’ preferences.
Frequently Asked Questions (FAQs)
What Is the Average Conversion Rate for Financial Advisors?
It’s difficult to pinpoint an average conversion rate for financial advisors, as various sources report different numbers. For some advisors, prospect conversion rates may be as low as 5%; for others, the rate may be closer to 75%. What’s important is setting a conversion goal for your firm that’s achievable and realistic.
How Do I Market Myself as a Financial Advisor?
There are many ways to market yourself as a financial advisor, including:
- Email marketing
- Social media
- Content marketing
- Influencer marketing
- Digital ads
- Direct mail marketing
- Offline strategies, such as attending advisor conferences or participating in local seminars
Knowing who your ideal clients are and which marketing strategies they tend to be most receptive to can help you decide where to focus your efforts.
How Do Financial Advisors Get Clients?
Financial advisors get clients in a number of ways. Inbound and outbound marketing strategies play a big part, but advisors may also rely on referrals to gain new clients. Lead generation services can also bring more prospective clients your way.
Bottom Line
Converting prospects to clients isn’t always a cake walk, and smart advisors understand the value of a solid sales pipeline and funnel. These strategies may be helpful if you’re getting prospects into your pipeline, but finding it difficult to reach the finish line.
Tips for Growing Your Advisory Business
- If you have limited time to spend on marketing or lead generation, you may consider partnering with a third-party platform that’s designed for advisors. SmartAsset AMP helps growth-focused advisors connect with leads while making it easy to follow up. Schedule a demo to learn how you can leverage it to grow your business.
- It’s important to keep compliance in mind when marketing your business and bringing new leads into your sales pipeline. The SEC’s marketing rule outlines what registered investment advisors can and cannot say when advertising their firms. Reviewing compliance rules for email and social media marketing can ensure that you’re not running afoul of the guidelines.
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