Always wanted to get access to wealthy clients? Read on to find out what you need to do to build a HNI client base.
A recent opinion poll on Cafemutual shows that biggest challenge faced by IFAs was gaining the confidence of wealthy clients. Another 23 percent IFAs felt the major challenge was getting access to them with just 7 percent of IFAs saying that they had problem in developing expertise and skills to service these clients. Cafemutual spoke to a few IFAs to suggest ideas that might help you to overcome these issues.
Getting access to wealth clients
First impression is last impression. This popular old age adage fits perfect in financial advisory profession, feels Nisreen Mamaji from Moneyworks Financial Advisors. She said “Developing arts and skills for targeting HNIs clients is not a rocket science; one could easily overcome this problem by spending some time in personality development. Before meeting any wealthy client, advisers should keep in mind their dressing sense, body language, looks, accessories, brief case they are carrying and other small things. They should try to enunciate their message slowly and clearly. A wealthy client may like to deal with a person who is similar to them.”
Nisreen feels that asking for referrals from existing clients may help advisors to get access to wealthy clients. She said “The wealthy people often hire a manager for their financial management.One would have to approach their Financial Manager for business but approaching a client through them may not be a good idea. You should try to contact them through their social circle.”
Vishal Dhawan of Plan Ahead Wealth Advisors suggests that advisors should take memberships of affluent clubs and spend few hours there so as to widen their social circle. “Advisers should try to get access to wealthy clients through their friend circles. For example, if your friend is a manager in a company you can ask him for arranging an appointment with his CEO or boss.”
Words of mouth and referrals play vital role in financial advisory business. However, some advisers feel that there is no particular strategy to reach out wealthy clients but your social circle might help you to get access to HNIs.Nikhil Naik, a Mumbai based Financial Adviser said that the advisers should keep try to contact HNIs through formal letter, emails, sms, newsletter etc.
Gaining their confidence
Advisers feel that the kind of products, services, commission structure, research and methodology could create a major difference in gaining confidence of the wealthy clients.
Nikhil feels it is completely dependent on the nature of products you are offering to your clients. “There is no particular way to gain the confidence of wealthy clients but an effective strategy, knowledge, capability, products and services may help you to some extent. You should have equivalent knowledge and intellect as your clients so as to match with them.”
Vishal believes in building credibility in society through media and testimonial from existing clients. He said “A wealthy client looks track record of IFA’s before starting any business relationship with him. Hence testimonials from existing clients will help advisers to better represent themselves before HNIs.”
Nisreen says that one should avoid starting the first conversation with sales. She said “Doing business with HNIs isvery different from normal clients. Advisors should have to spend more times with HNIs and try to build a relationship. It’s better to give them a chance to understand your talent and knowledge. Once they are confident, they will surely ask for doing business with you.”
SujataKabraji, a leading IFA agrees. According to her, “HNIs recognize you in couple of meetings as they are quiet intelligent and observant in nature. You should try to present your subject specialization and knowledge to them.”
Developing arts and skills
Advisers said that the educational courses, diversification of product basket and knowledge could help to develop skills.
Sujata said that the study material and classes might help advisers to groom their skills. She said that the advisers should spare some time from their daily schedule for enhancing their knowledge and subject specialization.
Nikhil said that you should have sound knowledge of various subjects like company law, company structure, commerce, economics, finance, taxation and other.
Vishal said that advisors should try to present independent unbiased information on products. The product should be solution based not on trend based. Advisers should avoid use of brochures and other merchandising items.
