Defining Your Ideal Client Can Be a Win-Win

As an RIA, helping clients achieve financial success is one of your main goals. But every RIA knows that some clients are easier to guide than others. There may be a number of reasons for this. Some clients may be more heavily bought-in and comfortable with your investment philosophy and your firm’s business image and practices. Whatever the reason, it makes sense to seek clients who are a “match” for you. Investing your energy in an “ideal” client may be more likely to bring maximum satisfaction for both the client and you. 

The second in a series of education webinars provided for Scottrade® Advisor Services in 2016 by practice management firm ActiFi* addressed this issue. It helped identify steps and procedures to focus efforts on finding the right clientele that fits an RIA’s skill set.

Forty-two percent of advisors who responded to a poll during the live webinar “Define Your Ideal Client” said they had never segmented their clients. Seventeen percent said they had not defined what their ideal client is. (Scottrade® Advisor Services reports 51 advisors attended the live webinar.)

The webinar emphasized that defining an ideal client can help RIAs focus efforts on prospects with the most potential. According to the webinar, this definition varies among firms, and should be a written document that could be easily communicated and acted upon.

To begin forming what an “ideal client” is to an RIA firm, you might begin by answering the following:

  • What type of clients do you most like to do business with?
  • What characteristics do your most profitable clients have in common?

Your goal is to create a top ten list of most desirable client characteristics. It may take some effort, but with this list, you can focus efforts on strategies and tactics designed to reach A-level prospective clients. Listening to this webinar can help you start the process.  

Click here to listen to recordings from ActiFi’s practice management webinar series

*By clicking this link, you understand you will be redirected to ActiFi, a third-party website operated and maintained by ActiFi. Scottrade and ActiFi are not affiliated. ActiFi’s website contains information that may be of interest or use to the reader. Third-party websites, research and tools are from sources deemed reliable; however, Scottrade does not guarantee accuracy, completeness or timeliness of the information, is not responsible for statements, offers or products issued and makes no assurances with respect to the results to be obtained from their use. No information presented constitutes a recommendation by Scottrade or its affiliates to purchase any product or instrument discussed therein or engage in any specific strategy. Please research any product or service carefully before purchase.

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The information and content provided is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product, or an endorsement or affirmation of any specific investment strategy.