Pershing’s recently released new study, “What Do Top Advisors Say and What Do Investors Really Think?” reveals how top advisory firms set themselves apart and holds some important lessons.
The study found that advisory firms with the highest rated value propositions tapped into four key elements:
1. Attributes of the firm
2. Benefits to clients
3. A reason the attribute produces benefits
4. A degree of emotion
These four key elements should be a clearly defined as part of your firm’s story. That story starts with a situation or profile of an ideal client. In the story, you are positioned as uniquely equipped to address that ideal client’s needs. The story includes your background as well as how and why you are qualified to solve that client’s problems. Emotion needs to be conveyed in creating a perception of the clients’ experience and how working with you makes your clients feel.
So while this formula may also sound like a recipe for creating yet another value proposition and story that says the same thing, flipping the equation around to start with your client serves the purpose of pre-qualifying the right types of clients for your business by tailoring your message directly to them. Consider that if you have a well-defined ideal client who you are best-equipped to serve, then your messages should speak directly to this audience. How do you serve this client? Why do you serve this client? How does this client feel when they step out of your offices?
Investors surveyed in the study also revealed three key themes were most important to them in choosing an advisor:
• Developing solutions to meet needs
• Tailoring investment plans to individuals
• Acting in the best interest of clients
The ironic takeaway of course is that if the top advisors are using the same or similar messages to set themselves apart, then they are not setting themselves apart at all. Investors surveyed in the study also indicated they believed all advisors say the same thing. Yet, to set your firm apart, there is a certain level of “sameness” that must be created to compete. The difference comes from a feeling you create for the investor.
Advisors need to first determine just what types of needs they are best equipped to address, and just whose best interests are best served by their practice. Starting with the client in building your value proposition will set the stage of your story. Once we have developed your story, then it’s time to make sure it’s told in all your supporting collateral including your website, pitch book, brochure, newsletters, etc. This consistency of message will define and illustrate your brand.