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Americans need guidance to navigate today’s financial landscape, especially following the recent interest rate cuts, with more likely to follow. According to Bankrate, more than half of Americans (57%) sought out financial advice in 2023, with almost half (47%) of that group relying on family and friends as their main source.
This dynamic was confirmed in a recent Athene survey, which found that only about one third (34%) of Americans are currently working with a financial professional. As the market continues to shift and we approach the new year, more Americans may be seeking help from financial professionals.
In today’s crowded market, consumers have a wide range of options for professionals to work with on their retirement savings strategy. To help navigate this contrast between supply and demand, financial professionals are tasked with finding unique strategies to stand out among the crowd.
Part of a successful strategy involves knowing your value proposition, understanding your clients’ specific needs, networking and mentoring and keeping pace with industry trends. These tactics can help enable you to support your clients’ goals of a healthy retirement, while also helping meet your own goals and surpassing professional milestones.
Know your unique value proposition
Every financial professional has something distinct to offer. Top financial professionals have a clear understanding of their unique strengths and are able to convey them to clients. To set yourself up for success, distinguish yourself in the market through specialized expertise and tailored client services.
To define your own unique value, ask yourself questions such as:
- Do I use a unique client approach?
- Which market sector do I understand particularly well?
- How do I differ from my competitors?
Make sure you have strong answers to these questions. Clearly articulating your value can help draw clients seeking exactly what you have to offer and potentially create avenues to engage with existing clients in a new way.
Understand client needs and engage them creatively
Before providing solutions and product options to clients, it is important to have a strong understanding of their goals. Retirement is as unique as your clients. To create a comprehensive plan, it is essential to understand where they want to end up. Ease into client conversations, build rapport and listen before making suggestions. This dynamic can foster trust for when tough conversations around retirement, such as those about life expectancy, arise. Stay focused and positive. Be sensitive to body language, verbal cues and what’s happening in their lives to best address concerns and keep the conversation comfortable.
After you have learned more about their goals, it is important to work to be creative. Engagement goes beyond regular meetings and updates. Consider creative engagement strategies such as personalized retirement plans, interactive webinars and informative newsletters to help maintain and strengthen your relationships. Engaging clients beyond traditional methods helps build stronger dynamics and increases client loyalty.
These creative mechanisms not only reinforce your position with existing clients but also attract new leads. According to another Athene survey, over half (53%) of financial professionals with $500 million+ in assets under management (AUM) report they’re leveraging content marketing more often than other financial professionals.
To go further, know which engagement methods are the most attractive to prospects and resonate best with existing clients. Measure each strategy’s effectiveness; tangible metrics provide insight into what is working for not only your clients but for you.
The value of networking and mentoring
Outside of your clients, it is important to embrace the power of mentoring and strategic partnerships – the cornerstones of success in a competitive industry.
Research by Athene showcases that 70% of financial professionals have networked with peers in the past two years and 58% have mentored other financial professionals during the same period. Networking isn’t just about growing your client base – it’s also about learning and sharing experiences with peers, which can foster new ideas and strategies for your practice and clients that you may not have considered before.
In addition to mentoring, it is important to build strategic relationships with firms and organizations. Collaborating with someone like an accountant or lawyer may help you provide comprehensive solutions to your clients, building a sustainable practice that’s differentiated from your competitors.
Bring it all together with industry trends
Top financial professionals continuously monitor and leverage industry trends, such as the growing popularity of annuities – which provide a good hedge against market uncertainty – to provide the best possible support for their clients' retirement goals.
Clients trust your input and look to you for insights on how different financial products can help meet their goals. Be prepared to show how the products you recommend – like annuities – work, and explain how to execute the plan you have laid out for them.
The landscape for financial professionals is as challenging as it is rewarding. Embracing the strategies top financial professionals use can give you more tools to stand out from your competitors. Prioritize defining what you bring to the table and leverage those strengths with creative engagement and professional relationships to help create a secure and steady retirement income for all your clients.
Rod Mims is the senior vice president of distribution at Athene.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.