Seven ways to turn client data into opportunities in your practice 

By: Rainier van der Nest, Business Development Manager at Glacier 

“The data in your practice is a gold mine of opportunities that you cannot afford to ignore”, says Rainier van der Nest, Business Development Manager at Glacier. “In this challenging economy and its consequent shrinking number of investors, you cannot afford to miss the opportunities to optimise the data in your practice.”  

Why your current client data is important.  

When it comes to acquiring new clients and growing your existing clients’ assets under management, your current clients’ data is one of your greatest assets. Collecting and analysing your data can help you better understand your clients, discover trends that you can leverage in your service offering, and identify opportunities to enhance the value of your advice.  

In her recent article, FAnews journalist Myra Knoesen, makes reference to changing advice models and notes, importantly, that affordability challenges are at an all-time high the world over. This translates into lower net flows for advisors.¹  However, it is not only advisers who will feel the pinch of a shrinking market. The knock-on effect on other investment professionals, asset managers and linked investment service providers (“LISPs”) is inevitable. The market pool doesn’t decrease in size for only one segment, it seems. In this industry, we all swim in the same pool. 

In light of this, your client data presents a portion of the pool over which you preside entirely. But do you understand the data in your business and what to do with it to maximise net flows?   

Here’s a checklist of actions you can take, as an adviser, that can set you on a path to increased flows without having to leave your desk.   

1. Regularly review client data for insights about your clients and their needs (e.g. draw a book report). You should be able to draw data quickly and easily across multiple criteria and data points. For example, who are the clients in your business who have living annuities with no beneficiaries listed? Being able to draw such information can help you discover important client insights and trends which can in turn help improve your decision-making and advice. If you can’t draw this information quickly, you may need to review your data system. 

2. Identify untapped offshore opportunities.  Due to the performance of international assets relative to local assets and the current weak currency conditions, offshore investing has increased in popularity. If you are not including offshore investing in your clients’ portfolios, someone else might.  

Some clients may already be investing offshore indirectly via a feeder fund, but another option you can offer to your clients is investing offshore directly on an international platform like Glacier International where recurring options for investment are available. 

3.  Use your client data to optimise income streams for post-retirement clients. Given the evolving retirement planning landscape, you may need to assess your clients’ income solution options in the context of their specific needs and take a fresh view on combination solutions. Guaranteed solutions should be a key consideration for your post-retirement clients in these current challenging economic circumstances.  

4. Determine whom of your post-retirement clients may need to invest in discretionary investment solutions to help supplement their income needs. For some clients, their compulsory pre-retirement savings may not be sufficient to meet their retirement income needs. In such cases, discretionary solutions such as unit trust investment plans or voluntary life annuities may need to be considered to address the deficit. This segment of investing offers scope, choice and flexibility for retirees and can contribute to their optimised income.      

5. Explore alternative options by turning your default post-retirement solution for your clients on its head. A combination solution that yields post-retirement income can take many forms. Considering term annuities, endowments, and guaranteed income plans combined with offshore options can potentially produce the optimal results desired by the investor. 

6. Establish future leads and future clients from within your current client base. If you build relationships with your clients’ children, they could be your future client base. The future transfer of wealth from your clients to their dependants presents a great opportunity for investing and enlisting your services as an adviser. Knowledge of their needs and investment objectives is therefore essential. Initiating them into the world of investing may need to start with financial planning and education. This is the foundation of a life-long, prosperous relationship.   

7. Rethink, reinvent, refocus. In tough economic times, tried-and-tested methods may no longer be relevant or may no longer achieve the best outcomes. An overhaul of your strategy and value proposition may be required, and that often starts with digging through your data. The know-your-client philosophy has never been more important than now. Knowing your client and catering to their specific needs and characteristics means that you can tailor their portfolio to meet their unique circumstances and offer a personalised financial planning experience.