All over the place.
Having talked with a bunch of financial advisors so far this month, It’s interesting how scattered and random much of their marketing is in their quest for new clients.
Very often the advisors I’ve spoken to have tried a bunch of stuff. Much of it didn’t work. And frankly, he way they are implementing, it likely would never work.
One problem is a failure to understand
basic direct response math.
First, which should be obvious, you must know what the typical “life-time” value of a new client will be on average. At the very least you should know how much revenue is generated immediately when you bring on a new client and how much they will bring to your top-line in their first 12 months.
That’s typically my first question.
What are you charging, what products are you selling. What’s the revenue that comes to you when you onboard a new client. As a professional financial advisor, you must understand that foundational number.
If you don’t know that fundamental, well how do you know whether adding one or two new clients from a campaign was a wonderful return on investment or, an abysmal failure?
Second, how are your closing ratios?
You’ve got to know your numbers and then understand and bench-mark your numbers by source of traffic. If you don’t know how other very successful financial advisors do in these bench-marks it’s hard to evaluate how your ratios are stacking up.
And, frankly as Peter Drucker said, “what gets measured gets done.” If you want to improve anything, and certainly that includes your closing ratios you have to start with knowing specifically what they are and tracking how they’re doing.
Track back your numbers to properly evaluate.
How much can you afford to reasonably pay to add a new client?
Once you figure that out you work backwards.
How much can I afford to pay for a new client “discovery meeting.”
How much can I afford to pay for an appointment for that meeting.
How much can I afford for an “opt-in” or inquiry.
How much can I afford for a click, unique visitor, or inquiry.
Now you have a starting point to evaluate and organize your marketing efforts.
Do you “Know Your Numbers?”
Have you figured out each of those numbers and ratios that I just mentioned?
Third, are you “fishing in the right pond?”
I’ve heard it several times in conversations with advisors this month. Sometimes it’s in the mode of well, I had a bunch of people show up at Ruth’s Chris for our meeting but none of them were good prospective clients.
Well, ok.
Did you really need to use a steak as the “bait” to get them to show up?
I get those solicitations all of the time also, If I wasn’t in the business, I’d be a great prospect for your meeting. I’m not going to show up for a meeting with a bunch of others to collect a free steak. If I’m interested in the topic, I might read a book, show up for a webinar, or show up for your meeting. However, my time’s worth $1,000+ an hour. That bait isn’t going to make ANY difference for me to look into your big promise.
Now, that’s anecdotal, but let’s start with the “WHO.”
Who is it you want in the room, on the webinar, receiving your book, your special offer, whatever the “lead magnet” or offer might be at any given time or for any specific list.
Then, are you ONLY floating that offer to those particular individuals?
It’s an Obvious Question.
Tom Peter’s called things like that a “Blinding Flash of the Obvious.”
However, most advisors that I talk with, haven’t really thought that through.
Well, enough for today….. I recorded a couple of new videos this week. I’d invite you to watch them and take advantage of our free offer listed below.
If you’re a “good fit,” I’d love to chat personally and help you with your own personalized marketing plan for the New Year.
