2018 FA Smart Book

Market Success

This post is updated. It was originally published in 2017.


Independent Advisors need a strategy-led, systematic growth program.

We recently published the Financial Advisor SMART BOOK™, 2020 Edition.  This latest edition has been updated and outlines the Revenue Architecture Methodology that financial advisors can use to add greater structure and predictability in their revenue engine. We introduce nine steps and advisor-specific marketing and sales strategies that are helping advisors capture client value.

The comprehensive guide helps independent financial advisors build a strategy-led, systematic growth program with 9 proven strategies. The goal is to help advisors:

  • Increase Volume: Generate More Visits & Inquiries
  • Increase Client Value: Get Better Qualified Inquiries
  • Increase Velocity: Increase your Conversion Rate
  • Increase AUM and Revenue: Optimize Engagement for AUM growth and Revenue Impact.

Having a vision and game plan for growth is important for financial advisors to thrive in a challenging marketplace. The Smart Book™ outlines how you can achieve more predictable and sustainable revenue growth by establishing a Revenue Architecture that fits your firm. The key is to commit to a systematic sales and marketing process by following the 9 proven strategies to guide your approach.

[Strategy 1 of 9] Markets & Buyers – Define Ideal Clients and Market Segments 

This may seem obvious, but we are surprised how many advisors we work with have not done a marketplace assessment, defined segments, and personas.

Steps You Can Take:

Identify Ideal Clients and Segments

A. Segment existing clients into A, B, and C tiers. Use your best ‘A’ clients to help define your Ideal Client Profile (ICP). Consider demographics, geography, and distinctive characteristics. Build Personas for your priority ICPs (e.g. physician with a spouse and family, ultra-HNW business owner, college professor, power couple, mass affluent, college family sub-HNW, business owner).

B. Identify and quantify (at a high level) your Target Addressable Market (TAM), the available opportunity for your services, and select segments based on intent and need, attractiveness, and competitive position. For example, a target addressable market for one segment might be the number of people with more than $2 million in assets who own their own businesses and live within 25 miles of your office.

Assess Your Client Engagement Performance

C. What is a reasonable share of this market for your firm? How many new clients are you targeting this year? Identify top-down S.M.A.R.T. goals (Specific, Measurable, Attainable, Realistic, Time-based): current revenue, # clients, AUM tiers long-term goal, years to reach the goal, and rate of growth. The CLTV (customer lifetime value) helps you consider a budget for client acquisition.

D. Consider what you need to improve your pipeline, e.g. more leads at the top of the funnel (attract stage) or better performance in the middle of the funnel (interest/consideration stage)?


Ideal Client Profile

  • Look for your best existing clients to inform your ICP:
  • Break down your Funnel into stages that your team can agree with.  This becomes the language of sales. Based on how your pipeline is performing, consider what areas need to be improved.
  • Do you need to feed the top of the funnel (TOFU) with leads that are aware or to convert more middle of the funnel (MOFU) leads by nurturing then from consideration to close?

For more on this strategy and to explore the other 8 strategies for growth, download the Financial Advisor SMART BOOK  below.

2020 Financial Advisor Smart Book

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  1. […] can explore the first two growth strategies, 1–Align Your Team on Vision and Smart Goals and 2–Build Persona Messaging for Ideal Clients Profiles or explore all 9 strategies for […]

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