Think like a tour pro and win more HNW clients

October 31, 2018 by Nate Oberholtzer

about the author:

Nate Oberholtzer

Account executive

Nate Oberholtzer is an account executive at Advicent, the financial planning technology provider of choice for nearly 100,000 financial professionals.

The affluent segment has seen steady growth over the last 10 years thanks to strong market performance and an ever-expanding world of opportunity due to technological innovation. With nearly 10 million U.S. households having a net worth of over one million dollars, high-net-worth clients are out there. From 2016 to 2017 alone, there was a 6 percent increase in millionaires, according to a Spectrem Group report.

This means that advisors have plenty of assets to go after, but the competition is fierce. The truth is, success in the HNW market is very similar to success on the PGA Tour, where a slight but consistent advantage can make all the difference.

Recognize the landscape

First, it is important for advisors to take note of the current high-net-worth market, similar to how a professional golfer will study the landscape of the course on which they are competing. With the multitude of industry information and market research available online and in trade publications, this is an essential action to take.

Just remember that the advisor marketplace is saturated with well-educated competitors, and there is no paradigm-shifting “next big thing” that will instantly grow your book of business. Studying the market and truly understanding the needs of high-net-worth clients is a crucial, but common practice of top advisors. It must be done before attempting to separate from the pack.

Find the edge

If you were to walk into the offices of advisors who deal with high-net-worth clients, the playing field would seem fairly level. Hospitality would be top-notch and the finishes of the office would be aesthetically pleasing. Eventually, though, the intricacies of how an advisor operates will add up to create a competitive edge.

Take the PGA Tour for example. In the 2018 season, Brooks Koepka, player of the year and winner of two majors, had a scoring average of 69.44 which was good for ninth place in the FedEx Cup standings. His winnings for the year totaled $7.1 million. Compare that to Justin Rose, whose scoring average of 68.99 etched out Koepka’s by only 0.65 percent. Yet despite this small edge, Rose took first place in the FedEx Cup standings with yearly winnings of $18.7 million – 146 percent more than Koepka.

At Advicent, we contend that financial planning software can give advisors this extra edge to win clients. For example, Presentation Module and the NaviPlan client portal allow advisors to create a more engaging and collaborative client experience. They help make the initial client meeting run smoother while ensuring pinpoint accuracy of plan details with the power of NaviPlan’s calculation engine. These details help ensure clients receive the best possible planning process and add up to edge out the competition.

To learn more, view our case study highlighting how a private wealth advisory practice with $130 million in AUM increased their revenue, prospects, and conversions rates by implementing NaviPlan.

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