Ask this simple question to understand different reasons why clients avoid consolidating their assets with one advisor.
Like other financial decisions, how much money clients choose to invest with an advisor isn’t always a rational process. Instead, it’s often the result of underlying beliefs, emotions and fears that clients may not even be consciously aware of.
Our new behavioral study on the factors that drive wallet share revealed common traits that explain investors’ relationship with money — and, in turn, how they approach relationships with advisors. Using that research, we identified five distinct personas you’ll find among your client base: Protectors, Competitors, Collectors, Verifiers and Simplifiers.
- Our research shows clients fall into 5 distinct personality types.
- Ask the right questions to discover their persona.
- Build trust and wallet share by tailoring to clients' personas.
Advisors who recognize their clients’ personas and the emotions driving their behaviors have a better chance of understanding what clients need from you to build trust and, in turn, feel comfortable giving you a larger share of their wallet. But it’s not as simple as asking your client which persona they are.
Clients not only don’t think of themselves in terms of these personas, they also often can’t articulate the “why” behind the level of assets they allocate to their advisors. But advisors can unearth a crucial clue by asking one simple question:
Why do you choose not to consolidate your assets with one financial advisor?
Once you understand the emotions that drive a client's behavior, you can adapt your approach to yield better results.