April 12, 2010
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Often overlooked, client appreciation events are an effective prospecting tool in today’s climate. Even a couple of years ago, many firms would do a single event in a year, writing it off as little more than a fun opportunity for clients and employees to get together, with no expectation of a return on their investment. Today, however, many advisors have told me that referrals through traditional pipelines are slowing. Instead, they have turned to events and found that they go a long way towards building trust with clients and prospects and driving new business.
Social events provide a mutually beneficial opportunity to ask clients for referrals, especially when the message is, “Bring your friends!” This type of events-based business development strategy suits advisors – people who make a career out of listening to people and understanding their hopes and dreams.
If you don’t have a lot of experience hosting events for your clients, this strategy may seem daunting, but it’s easy to execute with the right approach. First, you need to identify the type of client you would like to attract when holding specific events. You can then invite existing clients who fit the targeted segment, as well as centers-of-influence (COIs), to help prospect. Drive traffic by encouraging your network to bring friends and colleagues. You’ll find that having a mutual relationship goes a long way towards establishing trust with a new prospect.
The first question I hear after I’ve convinced a firm to do an event is, “What type of event should I do?” My response is always, “What are you trying to accomplish? Who would you like to attend?” The segment you are targeting will dictate the type of event you organize. Generally speaking, there are three main types of events you might choose:
Financial Education – The financial crisis rattled investors, leading many to seek a greater understanding of their finances and the markets. Holding educational events is a great way to attract prospects looking for a serious, intelligent partner to guide them. Designing such events is easier than you’d think as well. An advisor at your firm can reflect on the current market environment or on a particular area of expertise.
When Roth Conversions became a hot topic, for example, one firm had a young adviser who became an in-house expert on the subject. The first Roth event featuring his insights was so successful that the firm started repeating it via webcasts, getting more prospects to attend virtually, many of whom later came to meet at the firm. You can also tap external partners, such as custodians and technology providers, who may have access to intriguing speakers.
Lifestyle – Reflect on the life stage of the segment you are trying to attract and build an event around a relevant topic. For example, the college admissions process is a particularly fertile issue for middle-aged prospects. If you’re looking to draw younger families, you can speak about raising financially literate children. If you’re looking to market to an older, retired set, focus the discussion on intergenerational wealth transfer.
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