One of the more intriguing challenges in advisor marketing is that the qualities that attract new clients aren’t always the same ones that make long-term advisor-client relationships ‘stick’. In other words, while current clients may value certain advisor traits over time, new prospects – who are often still exploring their options – may prioritize something entirely different. This can create a dilemma: Advisors need to market themselves to bring in new business, but the message that resonates with prospects may not reflect the traits that keep clients loyal over time. And with limited time and resources, advisors who want to grow can’t afford to opt out of the marketing game. Which means understanding what today’s prospects actually want becomes essential.
In this article, Philip Palaveev, CEO and owner of the Ensemble Practice, explores new survey data from investors with $1–$5M in investable assets. The findings offer insight into what attracts clients to advisors, what keeps them in the relationship, and what ultimately leads them to consider switching. This last point is particularly relevant for advisory firms targeting delegator clients within that asset range who haven’t previously worked with an advisor. The data suggests this ideal profile is relatively rare – and of those who fit it, only 6% are likely to hire an advisor in the next two years. By contrast, 24% of current clients are considering changing advisors within that same timeframe, highlighting that while retention is common, it’s never guaranteed.
Interestingly, prospects who are already in (or who have recently left) advisory relationships tend to have more specific preferences, often shaped by what hasn’t worked for them in the past. Events that trigger a search for a new advisor include significant market downturns resulting in portfolio losses, as well as major life changes like divorce, the death of a spouse, relocation, inheritance, or a health scare. While advisors can’t prevent these events, they can prepare for them by identifying the potential risks and proactively communicating during times of change.
When it comes to choosing a new advisor, prospects are especially interested in the firm’s financial planning approach, investment philosophy, and pricing. Perhaps unsurprisingly, those who are thinking of leaving their current advisor place particular value on the prospective advisory firm team. Which reinforces how difficult it is to be all things to all people while still providing the level of specificity needed to attract prospects – so staying focused on the target client remains essential.
Ultimately, the key point is that advisors may benefit not only from targeting new prospects but also from appealing to current clients who may be quietly considering a change. Being transparent and specific about the firm’s philosophy, structure, and approach can go a long way in helping both types of clients find the right fit. And by staying alert to the life changes that often lead clients to consider leaving, advisors can adjust their communication and services to meet potential departures with the kind of connection that keeps relationships strong. And with consistency and proactive communication focused on those actively looking for new relationships, advisors can help to communicate their value in the right way to the right future clients!
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