The End Is Near; Are You Prepared?
by Martin R. Baird



The year 2000 has come to an end. But as the financial services industry and our economy evolve, there's another end approaching. The economy is changing, or has changed, and that is going to affect the way you do business.

A few months ago, a wholesaler hired us to do some seminars on how to improve client communications. As always, the seminars had strong attendance. Advisors want to hear about marketing. Please note I said hear, not necessarily listen or learn.

A number of people who attended commented that although we had great ideas and they loved the presentation, they were lucky that they didn't need to implement my suggestions. I wonder how long it will be before they realize that's precisely what they need to do?

I'm not saying we're dropping into an economic abyss. I simply think the economy has changed. We're no longer in a boom cycle. You know that our economy has cycles. We've been on a great run for the last 10 years or more. I don't think this is a huge revelation, but the boom is over.

The sooner you recognize this and become proactive when it comes to marketing, the softer your landing will be. We know our economy is stimulated by lowering interest rates. I know you will stimulate your business by starting an organized marketing effort.

Here are three steps that you should take before the end.

Number 1 - Contact the top 20 percent of your clients this week! You need to answer their questions and position yourself as the active expert who is there to help them with all their financial needs. If this core group of clients decides to leave, your landing could be a big crash.

It's important to remember that, during these challenging times, other advisors are looking at your top clients as great prospects for their business. They will do whatever it takes to get your clients interested in doing business with them.

Number 2 - Contact the last 10 clients that you lost. I know some of you are thinking, ìI wanted to get rid of them anyway!î That may or may not be true, but you do need to know why they left. Yes, the market has taken a beating, but if that is why they left, you need to put together a plan for ongoing education so clients do not leave as the economy continues to change.

Number 3 - Start doing one marketing effort six days each week. It could be as simple as calling a client or visiting a networking event. The most important part is that you take action. Studies show that those who keep marketing or increase marketing in down times come out of the downturn faster.

I could be all wrong. The economy could be great. The market may correct in the morning, all your clients will have made a fortune and there will be a line of people wanting to do business with you.

I don't know exactly what is going to happen. What I do know is the people who start marketing NOW will be better off than those who do not. It's your choice.

Are you prepared? Well are you? Do you have the pieces in place so you can launch a strong marketing attack tomorrow if you need to? Do you have the marketing resources developed and waiting so all you need to do is give the signal?

Now is a great time to start holding your clients' hand. This is a wonderful time to have a state-of-the-union seminar for your clients and their friends. It doesn't need to be a big event, just an informative experience so they can learn about what you see happening.

Television news and magazines are making your clients well aware of: The dot.com crash! The recession! The end of the New Economy! The crash of technology! They will start making some very bad decisions if that's all they're seeing and you are not there to assist them. Many advisors have been paid well for the last couple of years, and clients have not been too demanding. Now is the time to pay the piper. If you're prepared, this can be a great opportunity for you to reassure your clients and even add some new assets.




Martin R. Baird is president of Advisormarketing, a full-service marketing management firm that provides a variety of services to financial advisors to help them improve their marketing methods and increase revenues, including seminars and conference speaking engagements on such topics as referrals, marketing, goal setting and customer service. The firm's Web site, www.advisormarketing.com, offers free marketing information and tools for financial advisors. Baird may be reached at mbaird@advisormarketing.com or visit www.advisormarketing.com for marketing tactics that will help your business grow.