Paul Lofties, CEG Worldwide
Co-host, The Preeminent Financial Advisor podcast

Cathy McBreen, CEG Insights
Co-host, The Preeminent Financial Advisor podcast

Key Takeaways:
• The wealthiest among us want respect from colleagues and peers to feel successful.
• Too many advisors aren’t being proactive enough with their clients.
• Understand your clients on a deep level.

In today’s world, where it’s challenging for investors to differentiate between various financial services providers, standing out requires more than just getting good returns on investments. What makes you different in the eyes of affluent prospects and clients is how well you can help people achieve what truly matters to them in life, beyond reaching their financial goals.

To do that, you need to first recognize what your clients want out of life and what “living their best life” means to each of them. Only then can you position yourself to help clients realize what matters most to them. If you can craft a value proposition that empowers them to pursue their key financial and nonfinancial aspirations, you’ll move a huge step closer to becoming a preeminent advisor.

Face The Facts
Of course, the definition of success often varies from person to person. One of the major factors that impacts how your various clients view success is, not surprisingly, their net worth. Changes to the bottom line can significantly alter our views of what makes for a great life and the roles that different people play in going after that life.

Consider, for example, how people define their professional success. Overall, according to CEG Insights research, 38.3% of investors with at least $100,000 in net worth said “being respected and respecting colleagues and peers” was a big part of achieving professional success. But a deeper dive by wealth level reveals some big differences:

1. The wealthiest investors with $5 million or more in net worth were more likely than those with a net worth of $2.9 million or less to define success as being respected and respecting colleagues and peers. It’s very likely that people with a net worth of $5 million or more are successful entrepreneurs, and that these business owners seek out the counsel and wisdom of others who they see as peers. 

2. Continuing to learn and develop professionally was a relatively uncommon definition of success, cited by just 16.9% overall. That said, 22.3% of the wealthiest group ($10 million to $25 million in net worth) said this was a big part of how they see professional success. Cleary, these already very wealthy investors value continued knowledge and lifelong learning—much more than do those survey participants with less than $500 million in net worth (just 11.9% of whom want to continue to develop professionally).

The role that financial advisors play in people’s success journey also varies significantly by wealth level:

• 71% of investors with $500,000 to $999,999 said their advisor is proactive in identifying opportunities that may impact investor success.

• That percentage rises to 81.7% for investors with $3 million to $4.9 million, 82.3% for investors with $5 million to $9.9 million, and 87.3% for the $10 million to $25 million group.

Insights Into Action
These variations by wealth level have some important implications for financial advisors.

1. Move upmarket. Advisors often assume that it’s too tough to break into the $5 million-plus market. But as the data shows, roughly two out of 10 people with $3 million to $9.9 million are essentially saying that they’re not getting proactive solutions from their advisors. You don’t need to win a ton of that business to thrive. So make the strategic decision to pursue this marketplace—the opportunities are there for the taking!

2. Engage in deep discovery. The affluent aren’t some monolithic group. You’ve seen just a few of the different priorities and values clients have based on their wealth levels. That’s why you need to understand how each client defines success—financially and otherwise—so you can give them the leadership and guidance they need. A deep client discovery process that goes beyond just the numbers is essential to becoming a preeminent advisor to the affluent.

3. Have the right resources in place. Your ability to network, make connections and build relationships with people who are important to affluent clients will help set you apart. Consider the affluent entrepreneurs who want to keep developing and learning professionally, and how they could benefit from a mastermind group of business owners that you bring together and facilitate. Likewise, building a professional network of specialists to help affluent clients with business challenges, advanced financial concerns like estate planning, and personal goals such as health and fitness will demonstrate that you are proactively seeking to help them live their best lives.

Show clients that you really understand them, then empower them to go after the things they truly care about. You’ll set yourself up for higher amounts of assets under management, enhanced client loyalty and significant organic growth.

Access the full podcast episode here.

Catherine McBreen and Paul Lofties are leading innovators in wealth management research.