Who Are the Best Clients for Financial Advisors?

It may surprise you to know that for a high number of successful financial advisors, a client’s net worth doesn’t necessarily indicate their quality as a client in wealth management services.

Net worth is important, obviously. Without some wealth, there’s no wealth to manage as a financial advisor.

But a dollar value can’t possibly account for what kind of experience an advisor might have with certain clients over the long term.

So, what else matters when defining an ideal financial advisory client?

An ideal financial advisory client is someone whose financial needs, communication style, long-term goals, and personal values align with an advisor’s expertise, service model, and financial planning philosophy.

Like any other collaborative process, you’ll have a better experience and a higher quality relationship with clients who have a personality you connect with and align with your advisory style.

A prospective client’s motivation and attitude matter in the financial planning relationship.

It’s easier to connect with clients who are good communicators and engaged participants. Those able to openly and honestly discuss their goals, ask questions, and so on throughout the financial planning process.

And this will seem obvious, but clients who are receptive to advice are going to be better additions to your portfolio of advisory clients than know-it-alls or particularly stubborn people.

Common traits of ideal financial planning clients include:

• Clear financial goals and defined priorities
• Openness to professional financial advice
• Strong communication habits
• A long-term wealth-building mindset
• Respect for the advisory relationship and process

Once you know your ideal client profile (ICP), your financial advisor marketing efforts and digital marketing strategy can be refined to connect with the right clientele at the right time in their decision-making journey.

What Type of Clients Do Financial Advisors Work With Today?

Who is an ideal client for a financial advisor in today’s market?

Usually, it’s a matter of fit between advisor and client.

As you think about the types of clients that best fit your experience, preferences, and advising style, it helps to segment potential clients by target and niche markets for financial advisors.

Let’s take a quick look at prospective types of clients for financial advisors and advisory firms.

What Are Examples of Target Audiences for Financial Advisors?

When it comes to the target audience for financial advisors, there are several different ways to slice it.

By focusing on and specializing your services for specific target audiences, you can take control of the kind of work you’re doing and the relationships you build.

Examples of target markets for financial advisors include the following:

• Companies or individuals in specific industries (e.g., education, healthcare, real estate, etc.).
  
  
• Families with multiple incomes and specific saving goals (e.g., saving for a house, to have children, etc.), or families with kids (who want to start saving for college).
  
  
• Small business owners, especially those operating their first business and learning financial literacy on the fly.
  
  
• Families or individuals experiencing major financial events (e.g., receiving an inheritance and looking to invest) or life events (e.g., divorce, changing jobs, retirement).

By targeting the right types of audiences, you can build or grow a solid customer base (that you’ll enjoy working with), establish a referral network, and get ahead of the competition, as well as other advantages. 

Within target audiences, then, there may be room for further specialization. Next, let’s take a moment to talk about niches.

Examples of Target Markets & Ideal Audiences for Financial Advisors:

In a guest post for kitces.com, author Stephen Wershing describes how financial advisors can appeal to niche markets.

He describes six types of niche markets worth considering, and how to build productive relationships within each niche.

• Affinity: Client relationships built around shared interests, social circles, or networks. “My advisor’s a lot like me,” these clients might say.
  
  
• Educational: Client relationships are built around the advisor taking on a teaching role, helping clients to understand their circumstances and options. “My advisor’s teaching me so much,” these clients could say.
  
  
• Experiential: Client relationships built around an engaging and consultative experience. These clients might say, “I love working with my advisor, and they make it so easy.”
  
  
• Psychosocial: Client relationships built around not just financial advice, but support (on a human/personal level)—clients going through an unfortunate life event or transition, for example. You could often hear these clients say , “I would feel lost without my advisor.” 
  
  
• Technical: Client relationships built around an advisor’s deep, technical knowledge; they’re able (and willing) to get down into the weeds with their clients. “My advisor knows their stuff,” these clients might say.
  
  
• Values: Client relationships built around shared values or philosophies. Those who fall under this niche could be overheard saying, “My advisor gets me.” 

To put this in some context, let’s look at an example of how the concepts of target markets and niches work together.

Let's say your target market is small business owners, and your niche is educational.

You could create a simple marketing message like "I help small business owners understand how to run their business from a financial perspective."

The idea is to position yourself in a way that stands out from other advisors who do not offer the same level of service you’re promising.

How Does a Financial Advisor Build a Client Base?

Especially for advisors who may be relatively new to the game, building a high-quality client base can feel overwhelming in a competitive market.

Some activities that can bring new clients into the fold include the following:

• Narrow your focus by considering target audiences and niche markets (as described above).
  
  
• Refine your ideal client persona. Who are they, and what are their goals?
  
  
• Develop a plan for social media and content marketing campaigns.

If that last point gives you anxiety, don’t worry.

Snappy Kraken’s here, with a complete digital marketing strategy ready to deploy.

Whatever your ideal client looks like, we’ll help you find them, connect with them, and build great relationships with them.

With sophisticated marketing magic happening behind the scenes, you can take care of all your marketing tasks in as little as a couple of hours a month!

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