Traits of Highly Successful Financial Advisors. Q ByAllAccounts National Survey Executive Summary

Transcription

1 Traits of Highly Successful Financial Advisors Q ByAllAccounts National Survey Executive Summary

2 Study Methodology

3 Purpose and Methodology Study Purpose This survey was designed to examine key traits and characteristics of successful financial advisors, including their: Views on defining success Personal strengths and values Top priorities Areas of focus and how they spend their time Methodology ByAllAccounts conducted a national online survey in Q2-Q The findings presented are based on aggregated responses from 390+ survey respondents

4 Key Findings For successful advisors Clients are #1, AUM Growth is #2 96.9% measure success by client satisfaction, more than two times as many as the next most common metric, assets under management, used by 41.5% Client retention (65.6%) and client service (60.9%) were the top two priorities of successful advisors, once again topping assets under management (59.4%), which was the third highest priority 96.8% of the fastest growing advisors listed understanding the needs of clients as their top personal strength Time is spent with clients, not in the back-office 80.6% said they spend the majority of their time on client management, communication and service, while only 18.3% spend most their time on back-office operations processes and reporting

5 Survey Respondent Profiles

6 1/3 of Respondents Independent RIAs or Wealth Managers Please select the description that fits your firm best: Law Practice 1% Technology Vendor Institutional Asset Manager 1% 2% Wealth Manager 7% Wirehouse 8% Independent RIA 27% Independent broker-dealer 12% Accounting Firm 1% Hedge Fund 0% Financial Planning Firm 16% Broker-Dealer 20% Bank Trust Department or Trust Company 4% Family Office 1% Endowment 0% Custodian 0%

7 Roughly 60% of Firms $100m+ in AUM Please select your firm s assets under management (AUM): My firm does not manage assets 6% $5B - $10B 4% More than $10 Billion 15% $1B - $5B 7% Less than $25M 15% $25-100M 23% $700m-1B 3% $ m 7% $ M 7% $ M 13%

8 Top 30% of Firms with $100m+ in AUM Grew Assets 16+% Over Past Two years By what percent has your firm increased assets under management over the past two years? More than 100% 1.9% % 0.0% 51-75% 1.9% 41-50% 31-40% 0.5% 3.8% Top 30% = Highly Successful 26-30% 21-25% 5.7% 6.2% 16-20% 11.0% 11-15% 13.4% 6-10% 23.9% 1-5% 8.1% 0% 1.4% I'm not sure 22.0%

9 Findings: Traits of Successful Advisors

10 Highly Successful Advisors Measure Success by Client Satisfaction Which of the following do you consider most important for measuring business success? Client Satisfaction 96.9% Assets Under Management 41.5% Revenue 35.4% Investment Performance 33.8% Employee Satisfaction 20.0% New Clients 20.0% Expenses 0.0%

11 Highly Successful Advisors Place High Priority on Client Retention, Service & Growth Which of the following would you consider highest priority for your firm? (please select top 3) Client Retention Client Service Grow Assets Under Management 60.9% 59.4% 65.6% Client Acquisition 35.9% Provide Holistic Wealth Management Increase Revenues 17.2% 21.9% Technology/Infrastructure Succession Planning Staffing Operational Efficiency Reducing Cost/Expenses Media Exposure/PR 7.8% 7.8% 6.3% 6.3% 1.6% 1.6%

12 Highly Successful Advisors Want to be Trusted, Honest & Best-in-Class Which of the following characteristics would you want your clients and/or peers to use to describe your firm? (Please select top three) Trustworthy Honest Best-in-Class Dedicated Experienced Respectable Smart Loyal Innovative Cutting-Edge Unique Dignified Sophisticated Efficient Advanced Other (please specify) Traditional Classic Modern Trendy 17.2% 14.1% 10.9% 10.9% 7.8% 6.3% 6.3% 4.7% 4.7% 4.7% 3.1% 3.1% 3.1% 1.6% 0.0% 32.8% 31.3% 64.1% 57.8% 54.7%

13 Highly Successful Advisors Work with High Net Worth Clients Which of the following income levels do the majority of your clients fall under? High Net Worth ($1 million - $4.9 million) 40.6% Mass Affluent ($500,001-$999,999) 28.1% Middle Income ($0-$500,00) 23.4% I'm not sure 3.1% Ultra High Net Worth ($5 million+) 3.1% None of the above 1.6%

14 Highly Successful Advisors Target Clients by Characteristics Do you target clients by characteristics such as investable income, occupation, age etc.? No 34% Yes 66%

15 Highly Successful Advisors Target Clients by Investable Income Which of the following characteristics do you use to select new prospective individual clients? (Please select all that apply) Investable Income 85% Life stage (e.g., widowed, divorced) Geographic location 40% 40% Occupation Age 20% 18% Other (please specify) Gender 5% 5% Ethnicity 0%

16 Highly Successful Advisors Top Strengths: Understanding Needs of Clients & Investment Philosophy On a scale of 1-5 (5 being highest, 1 being lowest) please rate the strength of your personal skills in the following areas: Understanding the Needs of Clients Investment Philosophy Financial Knowledge Analytical Skills Business Strategy Sales Skills Team-Building/Motivational Skills Networking/Communication Skills 96.8% 95.2% 93.7% 82.5% 71.4% 69.4% 59.7% 57.1% Marketing/Prospecting Skills 38.1%

17 Highly Successful Advisors Spend Most Time with Clients and Least Time in the Back- Office On a scale from 1-5 (5 being most, 1 being least) please indicate how much time you spend in a given month on the following activities. Client Management/Communication/Service 80.6% Investment Management/Research 51.6% Client Acquisition/Prospecting 45.2% Business Planning/Practice Management 38.7% Networking with Centers of Influence 24.2% Back-office Operations Processes/Reporting 18.3%

18 Highly Successful Advisors Visit Social Media Sites Weekly Which of the following websites do you visit at least once a week? (Please select all that apply.) The Wall Street Journal 61.3% LinkedIn 53.2% Bloomberg 48.4% Investment Advisor 41.9% Facebook 35.5%

19 Highly Successful Advisors Have ipads! Of the following, what's most likely to be found on your nightstand? An ipad 25.0% Good novel 18.3% A Bible 15.0% Best-business book The Wall Street Journal Biography 8.3% 10.0% 10.0% Travel magazine Sports Illustrated How-to guide 0.0% 1.7% 3.3%

20 Highly Successful Advisors Are Beatles Fans! Which of the following would most likely be playing on your ipod/cd player? The Beatles Red Hot Chili Peppers Frank Sinatra Bob Marley Tim McGraw Michael Jackson Lady Gaga Eminem Mozart The Ramones Celine Dion The Grateful Dead Run DMC James Brown Pavarotti Elvis 4.1% 3.3% 2.5% 1.6% 1.6% 1.6% 1.6% 9.8% 9.8% 9.0% 8.2% 7.4% 6.6% 5.7% 5.7% 21.3%

21 Highly Successful Advisors Compare their Firm to a Mercedes SUV If you were to compare your firm to an automobile (metaphorically) which would you compare it to? Mercedes SUV 40.8% Lincoln Towncar 24.5% Volvo Station Wagon 18.4% Bentley Mini Cooper Camry Chevy Pickup Toyota Prius Corvette 6.1% 4.1% 4.1% 2.0% 0.0% 0.0%

22 Complimentary Whitepaper! Successful Advisors Put Their Clients First 3 Essential Strategies to Increase Client Satisfaction, Retention & Loyalty Based on the results of a national survey of investors, topics in this whitepaper include: -How to effectively differentiate your business -Meeting and exceeding client expectations -Service offerings and communication strategies -Steps advisors can take to minimize the risk of getting fired -How to earn the right to ask for and get referrals -Leveraging technology to strengthen client relationships DOWNLOAD NOW > >

23 Succeeding with Account Aggregation Visit our client success stories page to see how 1,500+ advisory firms are using ByAllAccounts to: -Provide a higher level client service -Grow AUM -Streamline operational efficiency GO NOW> > Keeping clients highly satisfied by streamlining operations and spending more face-to-face time has enabled me to get more referrals and boost AUM by about 40% since the beginning of the year. -Michael Andries, Managing Member, mabc Advisors, LLC

24 Questions? Other marketing content Cynthia Stephens Vice President of Marketing, ByAllAccounts ByAllAccounts electronically aggregates billions of account balance, holding, and transactional information daily from thousands of financial institutions. This data is delivered as a single, consistent feed to the back-office systems of financial professionals and compliance officers, providing efficient access to hard to reach and held-away accounts, and eliminating the need for point-to point connections with multiple custodians. Learn More >