Apart from referrals, investor awareness programs (IAP) is the most preferred way to acquire new clients, shows an online poll conducted by Cafemutual recently. The poll results show that after IAP (34%), the second most preferred way to acquire clients is by influencing friends and relatives. Around 33% respondents said that they reach out to friends and relatives to build their clientele. The third most effective way to acquire clients is social media, blogs and their website.
Gajendra Kothari of Etica Wealth Management who has got majority of his clients through investor awareness programs says, “So far, we have conducted around 100 IAPs across the country. Thus, IAPs have always helped us in expanding our business. We have acquired around 70% of clients through IAPs.”
“We don’t talk about products. We make them understand the benefits of starting early. The audience is able to relate to it. We don’t poach them or follow up with to invest through us” adds Gajendra.
Vinayak Sapre of IFA Insights says “I do not hold investor education programs with the intention of getting business. I think it is an open platform to meet new people.”
Pallav Bagaria of Brand New Day says that IAPs were the most important source of acquiring clients when he started his practice. “We have acquired many clients through IAPs. It helped us build a rapport with clients and they started trusting us. This was a moralebooster. We now acquire 50% of our clients through these programs.” He claims that he reaches out to almost 1,500 new people every year through investor awareness programs!
Here are some tips to help you get started:
- Invite your existing clients and encourage them to bring along their friends/colleagues
- Do joint programmes with your fellow IFAs by pooling in resources if you can’t do it alone.
- Focus on needs and solutions; share insights.
- Avoid sales pitch – instead establish your expertise and credibility
- Be willing to counsel them as they could be your prospective clients. Encourage audience to talk about their financial problems and offer an insight or wherever possible a solution right away.
- Promote financial planning rather than focussing on just returns
- Avoid using jargons. Use local language to connect well
- Ensure you have the contact details of the participants either by exchanging business cards or by requesting them to fill the details in a register. This will help you to follow up with them later.
- Try to hold workshops during weekends when most people are not at work
- Conduct programmes by tying up with AMCs
Benefits of investor awareness programs:
- Helps build rapport among prospects
- Showcases your expertise to a large number of people
- Prospects get better understanding of matters related to finance and in future are less likely to be misled by product pushers
- Faster way to acquire clients than approaching prospects through cold calling or a product presentation.
Share with us your experience.
