Advisor: What service should I offer my Non-Ideal Clients?
I realize Non-Ideal Clients are a distraction to the growth of my business, but what should I offer them as service until I no longer need survival clients?
Mark's Response: There are many things to consider here, the largest among them is what is truly in each of your Non-Ideal Client's best interest. What often happens is that a smaller, or otherwise non-ideal, client is afforded less attention and less time with the lead advisor.
The fact often is that advisors can't afford (in terms of time or expense) to fully serve smaller clients and, at the same time some of these clients' situations will likely require more service time than is realistic. As with most issues related to integrity and ethics, the golden rule applies. Knowing everything you know about how financial services should be provided to clients as well as everything you know about a client's situation, how would you want to be handled?
When I went through this mental exercise years ago, with some clients I felt they genuinely needed more resources than I was able to expend for them, with others I felt an annual review and highly responsive, but reactive, service would be suitable. In all cases, however, I determined that what I would want, if the roles were reversed, was full disclosure. So, after contemplating each of their needs, I scheduled phone calls or meetings with every one to discuss the issue.
I shared my Ideal Client Profile (ICP) with them and explained that at some point (probably within 18 months), all my clients would meet this profile. I then offered up my views of their needs and clearly defined the level of support I was able and willing to provide. In some cases I referred them to a financial planner or other financial professional to shore-up any service gaps I saw, in other cases we simply agreed that a "review" with me every year or 18 months was sufficient.
Most clients asked what would happen to them once I had acquired enough clients meeting the Ideal Client Profile. I gently proposed that, like now, we would meet and I would be prepared to point them in the right direction (to another professional I had confidence in). A couple Non-Ideal Clients disengaged from us after this meeting, but nearly all of them were happy to continue under the arrangement we agreed upon. All were grateful for my up-front and fully disclosed approach.
