3 Ways Advisor Firms Nurture Leads and Grow AUM

Growing an advisory firm requires a coherent strategy. A 2023 survey conducted by Janus Henderson Investors and the Financial Planning Association (FPA) examines ways advisor firms can encourage growth. Read on to see the three ways advisor firms nurture leads and grow assets under management (AUM).

If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.

Build a Team

Advisory firms come in different sizes. But working with a team in an advisory firm has demonstrated advantages in growing AUM.

Solo practitioners tend to be less comfortable with their growth rate, according to the survey.

“Of firms managing less than $100 million in AUM, 90% do not have a team,” the survey says. “Regardless of why advisors hesitate to form a team, the research shows that teams can onboard more clients than individual advisors.”

Have a Process and System to Generate Growth

“An overwhelming majority (89%) of advisors agree that having the right processes and systems is critical to business growth,” the report says. “However, only 59% agree that they have completed this work.”

Crucial processes may involve following up with and nurturing leads, as well as preventing staff burnout.

The advisory firms that don’t have a proper process or system in place grow more slowly than competitors that do. “Firms growing at a significantly slower rate are much more likely to have no process (20%) or an informal process (57%) in place for actioning on prospect leads,” the report says.

Identify Ideal Clients and Execute Strategy

Identifying your ideal client is just the first step to growing your client base. Growing firms are also tailoring the office experience, marketing communications, in-house specialists and other firm elements to their ideal clientele.

“Those firms that onboarded 10+ clients in the previous 12 months are more likely to have gone beyond identifying their ideal clients to intentionally designing an experience based on their specific needs, challenges and preferences,” the report says.

Bottom Line

Having a quality strategy, process and system within an advisory firm is a step to long-term success. Advisor firms that are growing tend to work with a team and execute on various client- and business-facing strategies to facilitate growth.

Tips for Growing Your Financial Advisory Business

Let us be your organic growth partner. If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform. We match certified financial advisors with right-fit clients across the U.S.
Expand your radius. SmartAsset’s recent survey shows that many advisors expect to continue meeting with clients remotely following COVID-19. Consider broadening your search. And work with investors who are more comfortable with holding virtual meetings or spacing out in-person meetings.