Client prospecting is one of the most neglected activities of most financial advisers, says risk specialist mentor, Russell Collins, who offers answers to advisers seeking to enhance their productivity in this critical area.
While he accepts the difficulties sometimes associated with the client prospecting process, Mr Collins advocates a ‘back-to-basics’ formula that he says will lead to success. In his new book, Skills that Succeed, he sets out a ‘process’ blueprint for disciplined adviser activity around prospecting, referrals and client profiles.
…call reluctance is a disease for which the antidote is activity
Commencing first with the prospecting process, Mr Collins endorses the need for hard work and discipline around activity: “Prospecting is the key to activity; activity is the key to productivity; and productivity is the key to profitability.” He says this simply means: “Activity = Productivity = Profitability.” For advisers who sometimes experience difficulty in making initial approaches to prospective clients, Mr Collins’ message is that “…call reluctance is a disease for which the antidote is activity.”
Given the ‘activity’ box has been ticked, Mr Collins acknowledges there are many ways to meet or be introduced to new clients, particularly given the explosion of technology and social media services in this generation. But he adds “In this high-tech/high-touch era [prospecting] may not appeal, but, on the other hand, if your current methods of prospecting aren’t working, maybe it might be worth a try!”
Based on the simple principle that “…if you want referrals, ask for them,” Mr Collins developed a process during his career that delivered outstanding results. This process involved asking his new clients for the names of two of their friends or associates who they thought may benefit from his services. But he applied a filter on the type of person who may be suitable as a future client by developing a prospective client profile, which he shared with his new client.
The prospective client profile covers areas such as gender, personal circumstances, attitudes to work and life, approaches to decision making and interest in wealth accumulation. Mr Collins refined this process to develop different profiles for personal and business/SME client prospects.
I never contacted the referral until the referrer had first made contact and paved the way for me
The chapter in his book that deals with the prospecting process explores prospecting, referrals and client profiles in much more detail and also contains a number of ‘pearls’, including the fact that “I never contacted the referral until the referrer had first made contact and paved the way for me.”
Mr Collins also continues to advocate the value of writing to prospective clients, rather than today’s equivalent of emailing: “This was done in the pre-email era. However, if I were doing it today I would still write to the referral. People get dozens of emails each day and delete many if they don’t know the source.” He said he also hand-wrote the address on the envelop for the same reason.
Advisers and other industry colleagues can click here for more details about Mr Collins’ book, which has been launched this week. See also: The Power of File Notes.
Russell Collins knows his stuff. He’s an outstanding industry leader and a fine human being – two attributes not always found in the same person. If Russsell says it works, you can be sure he’s tried it so it will.
I did Business Insurance courses in 1988 ( time flies ) and Russell ran them. His style and approach was the best back then and he continues to spread the word.
We need more people like Russell in the Industry.
I couldn’t agree with you more Jeremy, Russell knows what works and he is a true gentleman.
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