Pick out a niche and double your profits
Share
FP Advance chief executive Brett Davidson says IFA firms that segment their clients and identify a niche within their client base can more than double their profits.
Speaking on board the PIMS conference last week about five global best practice ideas for IFAs, Davidson said the first is a deep client focus.
He said: “Do more for fewer clients. Who are the people that really value what you do? Do a top 20 analysis. Go through your top 20 clients and see if there are any similarities in things like their profession, their family situation or if they are retired.
“Identify a niche and segment and differentiate your services effectively. Our research shows that profit increases by 137 per cent in firms that get that right.”
The second idea that Davidson put forward is to shape a client experience that is consistent and communicates how the IFA adds value to their assets.
He also advocated “pull marketing”, where firms build a brand and consumers are drawn to the business.
Davidson said: “Make sure you have a consistent approach to marketing, so people get to recognise your brand.”
He said the fourth idea is to produce an effective business plan, which contains both a strategic plan and an operational plan.
Davidson said the strategic plan should cover the next three to five years, while the operational plan should cover the next 12 months, mapped out by quarters.
The final idea is strengthening systems and processes.
Davidson says: “Ninety-five per cent of things that go wrong in your business are due to problems with your processes, not your people. You have to have processes in place for everything, even buying the milk. It will ensure that the client gets the best possible customer experience.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
